In many instances the news of a failure of a supplier or client can be disastrous for a business. Many people are unfamiliar with insolvency procedures or are uncertain about how to respond to the notifications received. Others will instantly assume that they will never see their money again and that any efforts that they make are pointless.
However, those that suffer as a result of failed businesses can play an extremely important role in influencing how an insolvency process develops, which insolvency practitioner is appointed to deal with the affairs of the insolvent business and to assist the insolvency practitioner with their investigations into the reasons for failure.
Those that incur losses due to the insolvency of a client or supplier often have helpful knowledge about the business and can play an important role in investigating a rogue owner and potentially uncover assets that can result in a better return for all stakeholders.
At Turpin Barker Armstrong we commit to completing thorough and comprehensive investigations so that creditors can be confident and satisfied that all avenues are explored to determine whether recoveries can be made for the benefit of creditors. We have experience of dealing with complex cases where our investigative work has uncovered assets resulting in significant returns to creditors. This has included but is not limited to antecedent transactions, overdrawn director loan accounts and recovering hidden assets from overseas jurisdictions.
Our insolvency and accounting background enables us to use forensic accounting and we also work closely with lawyers and other agents to enable us to take our investigations as far as possible. To assist with our investigations we utilise forensic technologies, online databases and other resources to supplement our other avenues of enquiry to ensure the complete package.We also seek to engage with creditors so that they can fully understand the steps being taken to work and work alongside us.
The failure of a client can have various consequences including, but not limited to, the following:
- Worry about the impact upon your own business;
- Uncertainty about how the insolvency process works and what you need to do;
- Concern about the causes of failure and whether the owner’s actions were a possible factor in the insolvent company’s demise.
At Turpin Barker Armstrong we are happy to review any situation and offer preliminary advice on the appropriate steps to take. If necessary, we can assist you further by carrying out the following roles which vary depending upon the circumstances of the case:
- Clarify the impending insolvency process and explain the likely outcome for you;
- Complete and submit all documentation on your behalf;
- Establish the real causes of failure of the business;
- Act in an investigative role and seek to establish whether there has been misconduct by the owners of the failed business.
- Advice on trying to get an insolvency practitioner of your choosing appointed rather than one chosen by the owners of the business.
- Guidance on how to request to be a member of a committee with other parties owed money by the failed entity.