Services to Accountants & Solicitors

At some point in time, most of your clients will be affected by insolvency. Probably it won’t be their own. However, the insolvency of a debtor, supplier, or business partner, may also have an impact.

Whatever the circumstances, your client will need immediate access to commercial advice that can be delivered and implemented quickly. We work with you, to help you to help your clients.

Acting for debtors

Accountants often become aware of their client’s financial problems at an early stage. The possibility of insolvency may become apparent when preparing accounts or cash flow forecasts. Most commonly, however, it is simply because the directors seek your help when they recognise potential problems.

Once insolvency is identified as a possibility, there is a need for urgent action because:

• there are potentially severe consequences for ‘insolvent trading’; and
• the sooner any problems are addressed, the greater the chance of solving them.

The first step is to avoid incurring debts until the position is clarified. The next step is to carefully evaluate the solvency of your client and identify any issues that may complicate or assist in a restructuring.

Even if your client is insolvent, there are several options available:

• It may be possible to trade without incurring credit;
• It may be possible to renegotiate trading terms or reorganise finance arrangements so that the company becomes solvent; or
• If it is not possible to continue trading, and reorganisation cannot be achieved, voluntary administration provides an alternative means of addressing solvency.

We would welcome the opportunity of working with you to solve your clients’ problems.

Client Legal Actions Against Debtors

If your client is winding up a debtor, as the petitioning creditor, your client is now able to nominate the insolvency practitioner of their choice as liquidator or trustee in most courts. We would be happy to discuss providing a Consent to Act as Liquidators or Trustee in Bankruptcy.

Attendance at Creditors meetings

We can help your clients with completion of proof of debt forms, and we can accompany or represent them at creditors meetings. We can also help them assess their position and evaluate any proposal from debtors.

Individual debtors

In broad terms, insolvent individuals have the same options as insolvent companies:

• To keep trading, if this can be done without incurring credit;
• To reorganise or renegotiate finance arrangements; or
• To utilise Part X of the Bankruptcy Act to address solvency problems.

Litigation support

As accountants with extensive experience in managing businesses across a wide range of industries, we can provide practical, financial expertise in a broad range of commercial matters.

Critically assessing solvency is now a crucial aspect of litigation involving insolvent trading, set-off, or voidable transactions.

We can provide experts reports and critically assess reports prepared by others.

Corporate Structure Simplification

Many businesses incur unnecessary costs through the continued use of an inefficient corporate structure. Elimination of redundant companies saves time and money in a number of ways, by avoiding or simplifying the following:

• Tax return lodgment;
• Annual return lodgment;
• Preparation of notices and minutes for annual meetings;
• Payment of ASIC filing fees;
• Reconciliation of intercompany loan accounts;
• Preparation of consolidated accounts.

We will provide a preliminary no cost review of your client’s structure to identify potential cost savings through corporate reorganisation.

Where rationalisation is appropriate, we can act as liquidators in these circumstances. However, if it is more appropriate to your client’s circumstances, we can assist with an appointment in your name, and attend to all aspects of the liquidation on an undisclosed sub-contract basis.