Formal Insolvency Proceedings


  • 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



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