Corporate Recovery & Insolvency
Corporate reorganisations, debt-restructurings, informal work-outs and formal insolvency procedures are increasingly being adopted by businessmen and creditors today. They are realising that there are more options to deal with a business that is not doing well financially, than just winding it up. Such alternative solutions often offer mutual benefits to all parties involved.
Financial difficulty, often the beginning of business failure, does not happen only in a recession. Even when the economy is doing well, various other reasons can also give rise to financial crises - fraud, mismanagement, competition, product obsolescence, etc.
During such financially trying times, parties including creditors, lawyers, credit executives, financial institutions and businessmen may turn to us to undertake formal appointments or turnaround services.
We have the expertise and experience to accept the following appointments:
Whether it is a situation of a company intending to wind down its business in an orderly manner or that of a creditor seeking to protect his interests, we are able to act as liquidators in each type of winding up:
- Court Winding Up
- Creditors' Voluntary Winding Up
- Members' Voluntary Winding Up
Receivers/Receivers & Managers
Where a loan is secured by a debenture and the lender wishes to protect its security position and interests, he may appoint us as receivers or receivers and managers. We may similarly be appointed by the court, where the court considers that the interests of justice require it.
A debtor under pressure from creditors can turn to us to work out a Scheme of Arrangement under Section 210 of the Companies Act, Cap 50.
Receivers of income
Such appointments are made by mortgagees pursuant to Section 24 of the Conveyancing and Law of Property Act (Cap 61). As a receiver of income, we would collect all rental income accruing to the mortgaged properties for the benefit of the mortgagee.
Agents for mortgagee - in - possession
Where the mortgagee has entered into the possession of the mortgaged property, we may be appointed as agents for the mortgagee-in-possession for the purpose of managing the mortgaged property.
Trustees/Nominees in Bankruptcy
The Bankruptcy Act enables individual debtors to pre-emptively avoid bankruptcy proceedings. We may act as "nominees" to facilitate the consideration and adoption of a composition or scheme of arrangement. In the event of a bankruptcy, we may also act as private trustees in place of the Official Assignee to undertake the administration of a bankrupt's estate.