The business is unable to continue to trade in the normal course of business due to cash flow constraints, creditor pressure, withdrawal of funding
To protect the value of the business and assets it can be necessary to seek the protection of a formal insolvency process which Dodick & Associates can provide
The process can be used to achieve a financial restructuring of the company where it is overburdened with debt
What do we do?
Formal insolvency processes provide a degree of protection from creditors, in many cases allowing the business to continue to operate under the supervision of a Court officer (Dodick & Associates). They can also be used to close down a business through liquidation
The primary aim of a formal insolvency process is generally to maximise the returns to a company’s stakeholders. This may be through the restructuring of the company, the sale of its business or the realisation of its assets
What are the benefits?
The primary aim is to maximise the returns to creditors, with a focus on cash generation and the optimisation of asset recoveries
By seeking the protection of a formal insolvency process, management is often able to restructure the business at a lower cost than may otherwise be possible, limiting trading losses and thereby potentially returning the business to a going concern
A formal insolvency process will also enable the directors of a failing business to address the question of personal liability and possibly mitigate it