Considering restructuring in corporate insolvency – Conferenz 2009

The economic environment that the world has found itself in over the last year or so has
had an impact on all businesses and individuals. In particular, the term restructuring
seems to have risen from the ashes to become the new term of choice.
This is not to say that restructuring has not been a legitimate and well used term in the
past, but in a recession people in general do not want to be seen as “insolvency experts’
and now seem to be referred to as restructuring or turnaround specialists.
Aside from of the terminology used to describe our work, the truth is that in tight times
businesses have to tighten their belts and consider the best’way in which to maintain
their operations going forward.
This paper considers that various issues that need to be considered when restructuring
a business and highlights some of the pitfalls that people can fall into if not exercising
proper due diligence. Continue reading Considering restructuring in corporate insolvency – Conferenz 2009

Risk management key to preventing disasters

We often hear about successful business owners who expand during the good times only to find that they lose everything when one deal goes sour. How could they get things so wrong?

The answer is quite simple: running a business is a risk. During tough times we tend to manage the risk more proactively, are frugal with our spending and keep a lid on outgoings. Continue reading Risk management key to preventing disasters

Law change affects debtors and creditors

One of the risks that all businesses face is the threat of not getting funds owing to them, or being able to maintain sufficient leverage to keep the business running.

Although a liquidator has the power to overturn transactions between an insolvent company and a creditor, the fact that the transaction took place “within the ordinary course of business” has always provided the creditor with a good defence. It would require costly litigation to resolve on the part of the liquidator. Continue reading Law change affects debtors and creditors