The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:
This note aims to:
provide practical guidance to creditors owed money by a distressed/insolvent company
explain the position of creditors in most types of corporate insolvency situations
provide advice on what a creditor can do to maximise their position if a company enters into formal insolvency proceedings—both before and during.
This guide does not cover:
individual bankruptcies. See Practice Note: Creditors' bankruptcy petitions—grounds and documents required for presentation
partnerships. See General partnerships and insolvency—overview
the detail surrounding corporate insolvency processes
debt recovery options against live companies
The fact that a company is insolvent and so unable to pay its debts as and when they fall due (as defined by the Insolvency Act 1986, s 123 (IA 1986) means that there will only ever be a limited pot of money available for all creditors, and it’s the unsecured creditors who inevitably end up with little or no return (see Practice Note: Where the value breaks and negotiating strength).
This guide aims to provide some guidance to put unsecured creditors in the best position possible in the event of insolvency from a corporate perspective.
Details of an office-holder’s appointment must be included on the company’s correspondence. If the administrator or liquidator is aware of the creditor's claim, they should inform the creditor of their appointment. In practice, they often have incomplete creditor information and so creditors should
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.