Insolvency

The evolution of Company Law in the 1990's and beyond has resulted in considerable changes in the whole insolvency area. Insolvencies have become more serious environments for company directors and indeed for liquidators, receivers and examiners. Having enjoyed the benefits of a buoyant economy business is rediscovering the degrees inherent in mismanagement and misfortune in more volatile trading environment.

The increased burden of responsibility imposed on directors by legislation coupled with the current economic situation result in an environment where companies and their directors must align themselves with a suitably qualified and experienced practitioner when faced with a liquidation, receivership or examinership situation.

These three professional services form the backbone of Mazars’ offering in the insolvency services area. The hallmarks of our services are the combination of a highly professional and yet personal approach combined with commercial awareness. Out insolvency team is vastly experienced in the provision of these services having specialised in the area for over 20 years.

In addition we are skilled practitioners in bringing to bear taxation planning, dispute resolution and succession planning as a function of solvent Members Voluntary Liquidations. The Mazar’s international presence furthermore allows us to undertake larger and multijurisdictional assignments guaranteeing a consistently high level of professional and personal services.

For more information email businessturnaroundinsolvency@mazars.ie

Liquidations

The implications of, and procedures involved in, winding-up a company have become increasingly onerous with the advent of the Company Law Enforcement Act 2001 and the establishment of the Office of the Director of Corporate Enforcement. The duties and responsibilities of directors and the manner in which they conducted the affairs of the insolvent company in the two year period leading to the insolvency come in for increased levels of scrutiny.

Receivership

Receivership is the process whereby a secured lender in accordance with the rights conferred in a charge or mortgage document realises the assets so charged to repay amounts due. Although historically and virtually exclusively a process used by banks as a means of recovery it is a procedure of last resort in the lender – borrower relationship.

Examinership

Definition:

The facility to seek the protection of the High Court whilst negotiating a structured settlement with creditors on the back of further equity or equity equivalent investment is a highly beneficial procedure for companies with a sustainable commercial future but which are unable to pay their debts.

Personal Insolvency

Since the beginning of the downturn business people and investors have been looking frantically at how the recession has impacted on their net worth and solvency. They are facing a decrease in the value of their properties and equity investments funded by borrowings that now are greater than the value of those investments. The changed market conditions have significantly damaged consumer confidence and overall consumption in a variety of sectors, affecting the solvency of investment portfolios and the stability of businesses.

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