If your company is experiencing financial distress, you will have approached your parent organisation for assistance, spoken to your existing lenders, or looked for new investors.
If these actions have not brought the results needed, then you may be considering appointing the services of an insolvency practitioner to help navigate your current situation. Unless you have dealt with an insolvency practitioner previously, you may be unsure exactly what they do and what their duties are once you appoint one to assist with your company. However, as a company executive it is important you know the roles and responsibilities of an insolvency practitioner and understand the value they can add to your business, particularly during the early stages of financial distress.
You will want to find a highly respected and experienced restructuring and insolvency team, which offers a national and cross-border advisory service to a range of lenders, investors, creditors, institutional landlords, corporates and insolvency officeholders.
In the majority of cases, a company director will voluntarily approach an insolvency practitioner and enlist their help in dealing with their distressed company. In matters of compulsory liquidation, the courts will appoint an Official Receiver who will act as the provisional liquidator. They may later request that an insolvency practitioner be appointed to take the liquidation forward.
At this difficult time, it is helpful to have close support from someone who can retain an impartial view on the viability of the business, and will be able to interpret the insolvency practitioner's statements in terms of the people, process and technology of your organisation.
If matters result in a sale then you will want to realise the full value of your business.