The Most Frequently Asked Questions Within Corporate Insolvency
Are you a business going through the insolvency process? Or perhaps you’re an administrator or liquidator hired to do the same – either way our professional business law solicitors can help you by providing the expert legal guidance you need.
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Corporate Insolvency can be a complex, difficult area of law to navigate. Luckily for you, our experts are on hand to provide all the answers you need before you embark on your journey with us.
Below you will find all of the most frequently asked questions on Corporate Insolvency, including helpful answers to all of them to help you on your way. If you don’t see your most pressing questions here, feel free to contact us with any queries.
Corporate Insolvency Frequently Asked Questions
A statutory demand is a form of a written warning from a company’s creditor. A statutory demand will state that if your business does not pay its debt or come to another arrangement for payment of the same, which is acceptable to the creditor, the creditor may commence court proceedings to put your business into liquidation.
A winding up petition is an application made to the courts for an order that forces an insolvent company into compulsory liquidation. This process involves the appointment of an official receiver by the court whose role is to liquidate all of the company’s assets in order to repay the company’s creditors.
An antecedent transaction is a transaction made before a company becomes insolvent and which may be challenged in the event of insolvency. Antecedent transactions may be reversed or ‘set aside’ by a liquidator or administrator if the company was insolvent at the time the agreement was made, or transaction entered into, or because the company became insolvent at a later date. In an attempt to avoid having a transaction or agreement set aside, parties will therefore often wish to include a provision in any agreement involving the creation of a financial burden or obligation whereby the company confirms it is not insolvent and will not become insolvent as a result of that transaction.