Restructuring and disputes
Restructuring and insolvency
We advise companies, directors, creditors and investors on restructuring and insolvency, from informal arrangements with creditors to formal winding up.
Overview
Financial distress places companies, their directors and their creditors in a complex and time-sensitive position. Our restructuring and insolvency work, which runs alongside our business rescue work, covers the full range of outcomes: negotiated restructurings, compromises with creditors, liquidation and winding up, and the recovery of amounts owed.
For creditors, we advise on protecting and enforcing their position, from the lodging and proof of claims to negotiating settlements with liquidators. For directors and shareholders, we advise on their duties and exposure when a company is in difficulty. For investors, we advise on acquiring businesses and assets from distressed sellers.
We do not act as liquidators or business rescue practitioners, and contested insolvency proceedings in court are conducted by admitted practitioners. Our role is to advise our clients and to work with appointed office-holders.
Services
What the work involves
Liquidation and winding up
We advise on voluntary and other forms of winding up, the consequences for directors, shareholders, employees and contracts, and the steps required of each stakeholder during the process. We help clients understand the process and their rights at each stage.
Creditor claims
We advise creditors on the preparation, lodging and proof of claims in liquidation and business rescue, engage with liquidators and practitioners on our clients' behalf, and negotiate the settlement of contested claims. A clear position, taken early, improves the prospects of recovery.
Security and recoveries
We advise secured creditors on the realisation of their security and creditors generally on recovery strategies, including the commercial options available before formal enforcement. We consider the commercial options as well as the legal position, so that recoveries are maximised.
Compromises with creditors
We advise on compromises and arrangements between companies and their creditors, including those proposed under the Companies Act, and on informal standstill and restructuring agreements. A well-structured compromise can preserve value for all stakeholders and avoid the cost of formal proceedings.
Transaction risk in distress
We advise counterparties on insolvency risk in their transactions, including the risk that dispositions may later be challenged, and on protective structuring. Careful structuring at the outset protects a counterparty if its trading partner later fails.
Distressed acquisitions
We advise investors and purchasers on acquiring businesses and assets from companies in business rescue or liquidation, including the particular due diligence and documentation such transactions require. These transactions often move quickly, and we help purchasers identify and price the risks.
Directors' duties and exposure
We advise directors on their duties when a company is in financial difficulty, including the risks of reckless trading, and on the decisions that protect them and the company. Directors who act early, and on proper advice, are better protected and have more options available to them.
Who we work with
Creditors, suppliers and secured lenders; directors and shareholders of distressed companies; investors in distressed assets; and counterparties concerned about insolvency risk.
How we work
Speed and clarity
Insolvency situations move quickly; we give clear advice promptly.
Commercial outcomes
We look for the route that preserves the most value for our client.
Defined role
We advise clients and work with appointed office-holders; we do not hold those offices.
Common questions
How is this different from business rescue?
Business rescue aims to rehabilitate a company. Restructuring and insolvency covers the wider range of outcomes, including compromises with creditors, liquidation and creditor recoveries. The two areas work together.
Technically sound. Commercially minded.
Advice that begins with technical precision and extends to the commercial and strategic judgement that founders, owners and executives rely on.