Trading an insolvent company—checklist
Produced in partnership with Nick O’Reilly of Moorfields
ChecklistsTrading an insolvent company—checklist
Produced in partnership with Nick O’Reilly of Moorfields
ChecklistsThe decision to trade on is not a decision which an insolvency practitioner (IP) can make in isolation. It is important to get commitment to trading on from the other stakeholders who need to be involved.
These other stakeholders include:
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customers—required to commit to continue to buy from the company
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suppliers—required to commit to continue to supply the company
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employees—required to commit to carry on their duties with the company, and
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potential purchasers—required because without a purchaser the continued trading will not lead to enhanced realisations
The checklist below covers most of the key areas that an IP must focus on when trading a business.
Good levels of communication and control are essential from day one of a trading job.
There are four key words to keep in mind at all times from the moment an IP takes over:
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control—establish the whereabouts of all assets/premises
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secure—change locks, alarm codes and passwords
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insure—notify insurance brokers who insure assets for IPs
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inform—call together staff to notify them of your appointment.
Regular
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