Insolvency, Distress, Turnaround and Recovery
Our objective is to maximise the recovery process.
Clients include: AT&T Co, GoIndustry, SIA Group, GT, Kroll and PwC.
Our expertise is used by recovery specialists in all aspects of business rescue including formal corporate procedures, turnarounds, security reviews and financial restructurings internationally.
Although there have been some changes in the law phoenix companies can still be a problem for creditors and professionals involved in this area. Businesses and assets, particularly IP, sold at derisory prices sometimes to new companies with the same proprietors have long illustrated the problems with Section 216 of the Insolvency Act 1986, which was clearly inadequate.
Professionals that work in this area require comfort from us in order to achieve maximum returns for creditors, particularly following the important decision in the Western Intelligence case. We work closely with the insolvency profession in accessing the optimum disposal route and in asset identification and we sometimes act through advertisements and other media as their stated agents.
Intellectual property often represents a major component of value in any business enterprise including those potentially in distress. Delay in time to market or product recognition, delay in revenue recognition, unsustainable margins, competitor environment and working capital imbalances are key distress indicators.
IP valuation in this combative environment acknowledges orderly disposal and an asset possibly bereft of supporting intangibles (e.g. knowledge). However, there could be positive aspects in that a purchaser may not be so tainted and have more ability and IP to enhance significantly what it acquires.