Providing advice on liquidations.
Insolvency occurs when an individual or a company is no longer able to pay their debts when they are due. If an individual becomes insolvent, a bankruptcy trustee will be appointed to administer their estate. Likewise, an insolvency practitioner will be appointed to manage the administration, liquidation or receivership of a company.
How can Butlers help you with insolvency in Newcastle or Sydney?
Our insolvency solicitors are highly experienced in assisting insolvency practitioners to recover the maximum amount of money for creditors. We can help insolvency practitioners to:
- Recover debts
- Recover payments made in preference to other creditors
- Seek further orders of the court to assist in liquidation, including appointment as receiver and manager of the property of the bankrupt or insolvent entity
- Advise on uncommercial transactions
- Prepare contracts for the sale of businesses or assets
- Pursuing an insolvent trading claim against the insolvent entity
- Providing advice on the application of the Personal Property Securities Act 2009
- Preparing contracts and deeds connected with bankruptcy, administration, liquidation and receivership
- Advising on the rights connected with possession, occupation and liens
- We pride ourselves on our practical, commercial focus. Our team can provide practitioners with speculative obligation free advice regarding the prospects of recovery or pursuit of a matter
Butlers Case Study: Advising a liquidator on the sale of a business
Due to a dispute between shareholders, a holding company was entering into liquidation. The company owned real property holdings and shares in two subsidiary companies. The liquidator sought our advice on three potential scenarios for the sale of the business:
- Selling the shares of two of shareholders to the four remaining shareholders equally; or
- Selling the group’s assets and business as a going concern and distributing proceeds to shareholders via a Members Voluntary Liquidation; or
- Selling the group’s assets on a piecemeal (not going concern) basis and distributing proceeds to shareholders via a Members Voluntary Liquidation.
We advised the liquidator of the taxation implications of each of these potential options, including GST, CGT, stamp duty, small business CGT rollover, and retirement concessions. We also advise on risks of penalties under the tax avoidance provisions under Part IVA of the Income Tax Assessment Act 1936. We estimated the tax positions for each of these options so that the liquidator could make an informed decision that was in the best interests of shareholders.
“We are long standing clients of Butlers Business Lawyers. As liquidators, we often deal with complex matters require legal intervention. Butlers Business and Law have acted for us in the recovery of debts and payments, and providing legal advice at all stages of the liquidation process. We always know that we can rely on the experienced team at Butlers Business and Law for accurate advice and practical legal solutions.”
- Have you registered your PPSR security interest?
- What is the role of solicitors and insolvency practitioners during insolvency?
- Director Liability during Insolvency: What are the risks?