Ways Corporate Liquidation Practitioners Can Help

If your business feels the effects of this challenging economic climate and is in jeopardy of insolvency, you should consider consulting our team of Corporate Liquidation Practitioners. They can help you navigate the complexities of your existing situation and provide strategic solutions such as business restructuring, insolvency, or liquidation.

Insolvency occurs when a company cannot meet its financial obligations. It can occur due to increased expenses, reduced cash flow, or poor cash management. Our corporate insolvency practitioners can help you during the financial distress of your company and can assist you throughout all stages of insolvency, following the corporate insolvency laws of Australia.

What Are Corporate Liquidation Practitioners?

A corporate insolvency practitioner is often engaged when a company struggles with its finances. A company’s board of directors’ primary responsibility is to create and implement a strategy for the company’s recovery or to arrange for the company’s winding up to maximise returns to creditors and shareholders.

Corporate Liquidation Practitioners are responsible for:

• Analysing the market climate to determine the company’s viability.
• Choosing a strategy for the company’s rebirth from various available possibilities.
• Negotiating the plan’s acceptance, putting it into action, managing it, and keeping an eye on it.
• Managing the company’s day-to-day activities at the same time.
• Dealing with insolvency ATO debt

A Liquidation practitioner will have to do the following tasks when winding up a business:

• Ensure that the company’s assets are collected, sold, and distributed to creditors following their respective priorities and
• If required, take legal action to collect the firm’s assets from third-party companies on behalf of the firm while investigating the company’s affairs.

Due to conflict of interests, insolvency practitioners have no obligation to directors. When a company goes into liquidation, an insolvency practitioner’s primary responsibility is to investigate the company’s past conduct and pursue the company’s directors to retrieve funds, for example, through unjustified choices and other unenforceable transactions or to report the company’s directors to Australian Securities and Investments Commission (ASIC).

According to guidelines that govern insolvency practitioners, they are permitted to provide specific and detailed advice to the entity they are advising but are not allowed to provide clear/detailed guidance to the directors regarding their personal obligations arising from the fallout of the liquidation. However, generic advice is permissible.

How Can Corporate Liquidation Practitioners Help?

Corporate insolvency practitioners evaluate the company’s financial situation and then establish an appropriate recovery plan or arrange to wind up the company to maximise the returns to the members and creditors of the company.

The corporate insolvency practitioner has numerous responsibilities, depending on the situation of the company, including:

• Determining what exactly went wrong with the finances of the company and creating a thorough report to the creditors.
• Taking suitable measures to rescue companies and preserve jobs when possible.
• Handling complicated legal claims in which parties are involved whose actions resulted in the insolvency of the company.
• Becoming a negotiating intermediary between creditors and debtors to identify the appropriate repayment solutions to help companies avoid insolvency

It is crucial to involve a licensed corporate insolvency practitioner to oversee the following matters:

• Members Voluntary Liquidation
• Creditors Voluntary Liquidation
• Administration
• Compulsory Liquidation
• Company Voluntary Arrangement
• Individual Voluntary Arrangement
• Bankruptcy

The corporate insolvency practitioner takes control of the management during the company insolvency and must establish a report on the conduct of the directors. This helps the insolvency service in taking the right actions. In case of reconstruction of the company, the corporate insolvency practitioner:

• Evaluate the company’s viability within its market environment.
• Selects the right action from various possible options for the reconstruction.
• Negotiates approvals and later implements the plan while also managing and monitoring.
• Simultaneously handles the daily operations of the company.

When Should You Consult Corporate Liquidation Practitioner

Many companies often consult a corporate insolvency practitioner when the financial distress levels become unmanageable, and the company directors realise they can’t continue in current circumstances. During this stage, the insolvency practitioner steps in to assess the possible solutions and recommend the most feasible action.

However, to ensure that your company gets out of the financial situation and flourishes, you must consult the insolvency practitioner earlier. When you consult the experts in the initial stages of the problem, you ensure that your company has the best possible chances of survival.

You have a wide range of recovery options during the initial stages, giving you a higher chance to jump back on track. When left too long, the usual choice is to wind down the company.

Our Experience As Corporate Liquidation Practitioners

Our director is registered as a Bankruptcy Trustee with AFSA and a liquidator with ASIC and has more than 30 years of experience assisting companies through the insolvency and bankruptcy stages.

Our team has qualified professionals with the right expertise and knowledge to understand how challenging and emotionally draining such a situation is. This is why we have the right resources and solutions to assist you with the problem.

The professional corporate insolvency practitioner knows how to handle each case and find a cost-effective and straightforward solution. The experts thoroughly evaluate your situation and take over from you to see the best possible outcome for your company.