For many of today’s business owners, the risk of business insolvency has become an ever-present concern. But often there are solutions to be found. Our business recovery and insolvency group provides comprehensive advice and assistance in formulating restructuring strategies for companies in financial difficulty and advising insolvency practitioners, stakeholders and banks on a wide range of insolvency issues.
Lawyers in each of our European offices are experienced in providing advice and guidance in relation to the particular laws in each jurisdiction and the rights and obligations of creditors, employees, shareholders and other stakeholders under those laws. These may vary significantly between different EU Member States and have a major bearing on the terms, timing and conditions of restructuring plans.
Our lawyers also advise on the application and effect of the EU Regulation on insolvency where companies facing financial difficulties carry on business and have assets located within different Member States.
Members of the group apply their expertise to advise on business recovery, bank enforcement and recovery, advice to insolvency practitioners, restructurings, issues for directors, insolvency litigation, real estate, property litigation, construction, financial instruments and employment and pensions issues.
Notable deals / highlights
Advised the owners and sponsors of a student accommodation complex on the unwinding of their financing and hedging arrangements. Depreciation in property values and the mark-to-market of the hedging arrangements caused the borrower to be in breach of its covenants under the facility documentation. We advised on negotiations with a major UK clearing bank through this process, the possible exit routes and their impact upon other financing arrangements in the wider group and ultimately on the sale process and discharge of the borrower.
Advised a Chinese food manufacturer in connection with the restructuring of its HK$250m zero coupon guaranteed convertible bonds.
Acted for BDO as administrators of E-Clear, one of the main four companies handling credit card transactions for airlines and travel agents in the UK. E-Clear collapsed owing in excess of £100m to creditors, including the airlines Flyglobespan and Sky Europe, and a complex investigation is underway.
Advised numerous landlord creditors in connection with the administrations of Regent Inns, MFI, Zavvi, Woolworths and others, including advice on the liability of administrators for rent and outgoings negotiating arrangements for the payment of rent and the return of properties by the administrators.
Acted for the board of directors of a highly geared private company on directors' duties in connection with a restructuring of the parent group to be undertaken in light of breaches of covenants under facility agreements with a secured lender, as supported by the majority shareholder and secured lender.