Insolvency and Corporate Recovery
Corporate recovery is the process of ensuring the owners, creditors, suppliers and employees of financially distressed businesses to get the best possible deal. In today’s volatile business environment companies find it increasingly challenging to discharge their debts or recover their credits. Depending on the degree of financial distress, corporate recovery could result in rehabilitation of the business or liquidation of the business. When companies are exposed to financial difficulties and the business is still viable, then a business turnaround is achievable with the help of expert restructuring strategists. When such recovery is not feasible, and the company is irredeemably insolvent, then the insightful advice is essential to liquidate the business with the most optimal outcomes for all the stakeholders.
Whether you are a business owner looking to restructure your business, manage your crisis or wind up your business in an orderly manner to preserve the goodwill, or a creditor seeking to protect your interests, our experienced specialists will work with you to maximise the financial outcomes by offering practical and cross-disciplinary solutions. When dealing with distressed companies, upholding the interests of the stakeholders is paramount, and our specialists are capable of creating value even in the most challenging cases.
Investigations and Litigation
When a company is trading at a loss, and its losses are irrecoverable, then there is no choice but to liquidate. When the company is insolvent, then the management may voluntarily decide to liquidate its assets to settle outstanding debts of its creditors and bring it to an orderly closure. In such circumstances, the company can convene a meeting with its creditors and commence the liquidation process after securing a resolution from creditors. Such liquidations are known as creditors voluntary liquidation.
Even when the company is solvent, the members/shareholders may voluntarily liquidate a company if it has ceased operations or if the business is no longer viable. It could be voluntarily liquidated for reasons of consolidation and restructuring or tax efficiency purpose, or when there is a deadlock among the members of the management or shareholders and the business cannot be sustained.
When a company is insolvent and unable to pay its creditors, and has wilfully neglected the statutory demands of the creditors to repay their monies, then creditors would petition the court for compulsory liquidation of the company to recover the funds owed to them. Though mortifying at times, liquidation is the most optimal solution for the directors of severely distressed businesses as it would resolve the crisis and prevent them from becoming personally liable for the company’s debts.
Regardless of whether it is a voluntary liquidation or compulsory liquidation, we will be able to provide comprehensive service as liquidators. Creditors can also benefit from our suite of services, ranging from debt-recovery procedures, dispute management unto enforcing liquidation and sanctions against management and directors.
As liquidators, our services include the following:
- Investigation of company affairs – assets, liabilities and claims of creditors and other stakeholders
- Recover and realise the company’s assets most advantageously
- Adjudicate the claims and ensure equitable distribution
- Nominee for judicial management
- Scheme of arrangement
- Advise unsecured creditors of their rights of debt enforcement
- Act as public trustees to undertake recovery and realisation of assets
We service a wide spectrum of lenders ranging from small commercial lenders to asset-based lenders who have difficulty in recovering loans extended to delinquent borrowers. We help them develop a comprehensive debt recovery strategy and develop a portfolio evaluation and monitoring strategy that allows improved recovery.
We can help lenders evaluate and understand borrower’s financial state and business prospects to make sound lending decisions. The result is a more effective, customer-focused lending and collection process that saves time and maximise resources while increasing recoveries and reducing costs.
We can negotiate with the borrowers and develop debt restructuring plan and monitor the borrower’s adherence to agreed repayment schedules.
If a loan is secured by a debenture and other recovery options proved not feasible, we can act as a receiver. We may similarly be appointed as receivers by the Court, where the interests of justice require it.
Lenders who have extended loans to financially-troubled organisations can also benefit from our suite of services. Our trusted professionals can help you to maximise your opportunities for success in a full range of dispute resolution issues such as winding-up proceedings, debt recovery disputes, bringing and enforcing sanctions against management and directors, and more.
Corporate Restructuring Services
All financially stressed businesses need not be liquidated, and in salvageable cases, we can work with financially stressed clients to achieve a solvent restructuring. This will invariably involve negotiations with principal creditors to arrive at deferred repayment plans and implementing a restructuring plan to revive the business.
We can provide insightful guidance and advice to turnaround and restructure your company by providing expert advice to assess business viability, manage cash flow, review potential to monetise assets and losing business units, streamline business and product mix, renegotiate supplier and customer contracts and establish synergistic partnerships. Our experienced specialists with industry-specific knowledge and skillsets are capable of delivering greater impact. We can assist in analysing and reviewing your operations and business plans and recommend practical solutions for effective and efficient implementation either through a scheme of arrangement or private arrangement.
Solution to Save Businesses
Any restructuring plan requires funding, and our specialist can help to configure a funding plan either through debt or equity financing. We can negotiate with creditors to delay payables to fortify the company’s cash position.
We provide the following corporate restructuring services:
- Business performance review
- Operation efficiency evaluation
- Debt restructuring strategies
- Liquidity improvement plans
- Cost reduction/profit improvement strategies
- Sourcing funds
- Managing divestments
- Managing mergers and acquisitions
Fraud Forensic Investigations
Fraud and corruption are an incessant risk in organisations both large and small. Compliance irregularities, accounting malpractices, violation of regulations have a long-term impact not just for the company but the entire enterprise ecosystem as it erodes investor confidence and market reliability besides tarnishing the brand image and alienating customers.
At InCorp Global, our professionals combine experience, subject matter knowledge and deep industry expertise to deliver integrated forensic investigation services that are capable of uncovering and presenting economic evidence, detecting and deterring fraudulent activities. We can also provide forensic support to companies under scrutiny by regulators or those facing litigation. We can also facilitate alternative dispute resolution proceeding where appropriate.
We provide the following forensic services to help our clients prevent and investigate fraud:
- Assess risks or fraud and misconduct and evaluation of existing controls
- Develop ethics and fraud control programs
- Implement and evaluate programs
- Investigate and provide a report on:
- Accounting irregularities
- Asset misappropriation
- Conflicts of interest
- Regulatory violations
- Suspicious transactions
- Bribery and corruption
- Acquisition and merger targets
- Litigation support