When the debts of a company outweigh its assets the company is said to be insolvent. This imbalance can be judged in terms of both cash flow and balance sheet.
Whether a company finds itself insolvent or is dealing with an insolvent company, the issue raises several challenges. Priority is the handling of monies and goods to ensure all parties involved are satisfied.
Insolvency is a reality of business practice and all companies should have contingency to professional advice to tackle its effect, to avoid further escalation of debt and ensure any monies outstanding are apportioned correctly.
Connell Associates understand that dealing with an insolvent company brings with it an array of potential legal and commercial problems.
Our experience indicates that speed of action in insolvency cases is key. Recovery of outstanding money or assets requires precise measures, implemented at pace, and using the legal mechanisms that are proven to deliver results.
The UK economic downturn that gathered momentum in 2008/9 has resulted in deepening insolvency trends. Whether as claimant or defendant it suggests that seeking a specialist legal partner is a prudent necessity in the current economic climate.