JP Downey - Insolvency Services

Insolvency Services

The firm provides the full range of Insolvency services – both Corporate and Personal, including:

Corporate Insolvency

• Recovery and Work-outs
  Assessing the business problem and, where appropriate, guiding management along a course of business recovery.
• Voluntary Administration
  A process available to corporations whereby an external Administrator is appointed to take control of the company and its affairs. Typically, the process is for a period of 28 days, after which the creditors decide as to the company’s future course.
• Deed of Company Arrangement
  A formal contract between the company and its creditors with a view to resolving the company’s financial difficulties.  Generally, it would provide a moratorium (or breathing space) to allow the company to deliver to creditors an outcome which is better than Liquidation.
• Creditors Voluntary Liquidation
  The winding up of an insolvent company by a resolution of the company’s shareholders.  The Liquidator is appointed at a meeting of creditors.
• Members Voluntary Liquidation
  The winding up of a solvent company by its shareholders. This process is often undertaken when a company has outlived its usefulness and the members wish to divide the surplus assets between them.
• Official (Court) Liquidation
  A compulsory winding up ordered by the Court – usually on the application of a creditor.  Sometimes, a Provisional Liquidator is appointed by the Court as an interim measure where the assets are in jeopardy.
• Receiverships
  A Receiver and Manager can be appointed either by a Court, or more usually, by the holder of a registered charge, such as a debenture.

Personal Insolvency

• Bankruptcy
  The administration of the estate of an insolvent individual or partnership of natural persons.  This may be initiated by a Court order upon the petition of a creditor, or by the voluntary petition by the insolvent person.
• Personal Insolvency Arrangements under Part X
  In some cases, insolvent persons may make an offer to their creditors to compromise their debts – usually for an amount more than would be available under bankruptcy.  A Controlling Trustee is appointed to convene a meeting of creditors to consider the proposal.
• Personal Receiverships
  On fairly rare occasions, a Receiver may be appointed by the Court to take control of the affairs of an individual.

General

• General Insolvency Advice
  A brief consultation can often deliver invaluable guidance to Directors or individuals who have concerns as to their statutory responsibilities when insolvency looms.  The earlier the advice is sought, the broader the options available.
• Litigation Support
  Parties involved in litigation will often engage professionals to assist in the preparation of evidence to support their case, or to conduct an investigation to trace suspect transactions and assess the strength of available evidence.  This is often referred to as Forensic Accounting.  Insolvency practitioners are experienced litigators and can give unbiased practical advice to parties embarking on expensive legal action.  We are sometimes called upon to give testimony as expert witnesses.
• Informal Mediation
  On occasions, where the number of creditors is small, it can be appropriate to mediate a compromise of an informal nature.  The experience of an insolvency practitioner can be of assistance in such circumstances.