Navigating Economic Crisis: A Comprehensive Breakdown of Business Rescue, Restructuring, and Insolvency

In times of economic crisis, businesses can face uncertainty that impacts not only owners and employees but also creditors. It is crucial to quickly identify the best possible solution for the business and act to minimize any losses for all parties involved. We provide advice on general contingency planning in a distressed debt environment, as well as formal and informal restructures, business rescue proceedings, and insolvencies. Our recommendations aim to maximize value for relevant businesses or creditors from both a legal and commercial perspective.

Our legal advice is based on the objective of business rescue, which aims to ensure the company continues in existence on a solvent basis, or if that's not possible, to obtain a better return for the company's employees, creditors, and shareholders than what they would receive from immediate liquidation. We also offer advice to parties that may want to fund a company in business rescue or conduct a transaction with a company in business rescue.

When facing financial problems, distressed businesses need expert restructuring support to quickly build a platform for recovery and sustained success. We assist businesses in formal restructuring procedures such as business rescue, liquidations, and schemes of compromise. Additionally, we provide contingency planning, standstill and forbearance arrangements, public and private equity capital raising and restructuring, distressed merger and acquisition-related deals, and advice on directors' duties during financial distress and restructurings.

When restructuring opportunities have been exhausted, or business rescue is not recommended or is unsuccessful, liquidation may be necessary. We provide advice to all stakeholders, including directors, debtors, creditors, liquidation proceedings, liquidators, and insolvency practitioners on all stages and aspects of the insolvency process. We assist clients with the commencement of liquidation proceedings, insolvency-related litigation, and applications to court, employment-related aspects of insolvency, cross-border recognition of liquidation proceedings, considering the effect of insolvency on contracts and reckless trading, and directors' personal liability.