Who do you work with in restructuring and insolvency?
We are usually introduced to financially stressed or distressed businesses by professional advisors, often solicitors or accountants, who see the need for our specialist skills. However, ultimately we are instructed by the management, creditors or other stakeholders in a business.
Our focus is on delivering solutions to financial stress or distress, avoiding formal insolvency where possible, but acting as insolvency office holders where necessary.
In this way we are able to address the concerns of a variety of stakeholders. It is worth remembering that whenever a company is technically insolvent the directors are obliged to act in the interest of its creditors rather than its shareholders. Whether a business is technically insolvent is a question we are used to addressing.
A recent trend (since the banking crisis) has been for banks to trigger the formal insolvency of defaulting customers far less frequently than previously, and this trend looks set to continue. Those insolvency practitioners whose traditional source of work is the banks are therefore seeking to compete more now in the non-bank sector.
The effect for those we work with that is that they are seeking professional services in a competitive market, which makes it all the more important to ensure that the relationship with their chosen professional is well founded. At Mercer & Hole we continue to work with a broad range of businesses and stakeholders amongst whom we have a reputation for first class professional service.
Date: 12th February, 2015
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