Restructuring & Insolvency Solicitors

Insolvency law and practice is complex and constantly evolving. The restructuring & insolvency solicitors at JMW offers practical, specialist advice to insolvency practitioners, businesses, individuals, lenders and other stakeholders on a wide range of issues. Our clients can rest assured that we have an invaluable depth of knowledge and expertise to help address and successfully resolve any practical, financial or legal matters.

It is now more important than ever to ensure that businesses and individuals receive the guidance and support they need to keep their finances under control and manage their cash flow and liabilities.

To speak to a solicitor about our restructuring & insolvency services, call us on 0345 872 6666 or fill in our online enquiry form to request a callback.

Our Restructuring and Insolvency Services

Our expertise in both contentious and non-contentious areas of insolvency restructuring law and practice includes:

To avoid financial difficulties, you should seek the advice of JMW’s professional corporate insolvency solicitors if you or your business is struggling with any of the above restructuring and insolvency issues.

Who Do We Work With?

At JMW Solicitors, our restructuring and insolvency lawyers offer bespoke services tailored to a variety of client profiles. Our approach is designed to address the unique needs and challenges of each client, providing specialised support and expert advice to navigate the complexities of insolvency law and financial restructuring. Here's how we can help:

• Businesses: we assist businesses facing financial distress with a range of solutions, from debt restructuring and economic restructuring to formal insolvency procedures. We understand the challenges of maintaining a positive financial structure and offer corporate restructuring, business turnaround, and advice on compulsory liquidation. Our insolvency solicitors work closely with businesses to manage cash flow, deal with creditors, and develop a future path that avoids winding up petitions while securing the best possible outcome.
• Individuals: for private individuals grappling with financial difficulties, our team offers compassionate and cost-effective support. From negotiating personal debt restructurings to handling bankruptcy proceedings in the Bankruptcy Court, we provide tailored solutions to help manage debts, protect assets, and navigate the bankruptcy process. Our experts ensure that individuals understand their options, rights, and the implications of each step in the insolvency process.
• Investors: our insolvency lawyers work with investors to safeguard their interests in distressed businesses or financial restructuring scenarios. We advise on the best strategies for asset recovery, deal structuring, and negotiating with other key stakeholders. Our team possesses in-depth knowledge of restructuring law and the financial markets, enabling us to offer strategic and commercially sound advice.
• Institutional lenders and financial institutions: we provide comprehensive support to institutional lenders, financial institutions, and banks dealing with distressed loans or borrowers in financial difficulty. Our services include security reviews, enforcement of loan agreements, and restructuring of debt obligations. We help lenders understand their position, navigate the legal aspects of insolvency and restructuring, and achieve cost-effective recovery of outstanding debts.
• Insolvency practitioners/restructuring professionals: for insolvency practitioners and restructuring professionals, JMW offers expert legal support and advice across both contentious and non-contentious matters. We assist with the management of formal insolvency procedures, liquidation processes, and the recovery of debts. Our team has extensive experience in dealing with complex restructuring options, providing advice on legal requirements, and representing practitioners in litigation and negotiations with all parties involved.

Our aim is to provide the best solution for our clients, regardless of their circumstances. With our bespoke services, tailored to meet the specific needs of our diverse clientele, we ensure that you receive the most effective and informed advice to navigate your financial challenges and achieve optimal outcomes.

What Options Are Available For Distressed Businesses?

Distressed businesses facing financial difficulties have multiple options available to help them navigate through these challenging times. Understanding the right approach depends on the specific circumstances of the business, including its financial structure, level of debts, and long-term objectives.

The most common strategies include:

• Debt restructuring: this involves renegotiating the terms of existing debts to reduce the financial burden on the business. Debt restructuring can include extending payment terms, reducing interest rates, or converting debt into equity. This can improve cash flow and provide the business with more breathing space to recover.
• Company voluntary arrangements (CVAs): a CVA allows a company to reach an agreement with its creditors to pay back a proportion of its debts over time while continuing to trade. This process is overseen by an insolvency practitioner and requires the approval of creditors.
• Administration: this is a formal insolvency procedure where an insolvency practitioner is appointed to manage the company's affairs to try to rescue the business as a going concern, or to achieve a better result for the creditors than would likely be the case if the company were wound up.
• Pre-pack administration: In this scenario, the sale of the business and its assets is arranged before the company enters administration and is completed immediately after. This can be a fast way to preserve the value of the business and safeguard jobs.
• Liquidation: if recovery is not feasible, a business may enter into liquidation, where its assets are sold to repay creditors. This can be voluntary, initiated by the company’s directors, or compulsory, following a court order often initiated by creditors.
• Negotiating with creditors: engaging directly with creditors to negotiate payment terms or settlements can sometimes provide a less formal solution to financial distress. This could include asking for more time to pay or negotiating a discount on the debts owed.
• Moratorium: a business can apply for a moratorium, providing them with temporary protection from creditor action while they seek to restructure or find a resolution to their financial difficulties.
• Informal business turnaround: sometimes, implementing operational changes, reducing costs, and re-strategising can help turn a business around. This might involve revising business models, cutting non-essential expenses, or focusing on the most profitable areas of the business.

Each of these options has different implications and processes involved, so those involved with turning around a distressed business are advised to seek expert guidance as soon as possible. Insolvency solicitors and financial restructuring experts, including law firms like JMW, can provide invaluable guidance, helping businesses to understand their position, evaluate their options, and execute the most appropriate strategy for their specific situation. Engaging professional support early can maximise the likelihood of a successful business turnaround and preserve value for stakeholders.

What Are the Key Legal Considerations Involved With Business Restructuring?

Business restructuring involves complex legal considerations that vary depending on the nature of the restructuring, the type of business, and the specific circumstances leading to the need for restructuring.

Here are some of the key factors to consider:

• Compliance with corporate law: businesses must ensure that the restructuring process complies with all relevant corporate laws and regulations. This includes adherence to company articles of association, shareholder agreements, and statutory obligations under the Companies Act.
• Dealing with creditors: creditor relations must be managed carefully during restructuring. This includes negotiating with secured and unsecured creditors, addressing priority claims, and considering the impact of restructuring on existing contracts and obligations.
• Employment law: restructuring can have significant implications for employees. Businesses need to consider redundancy laws, consultation requirements, and transfer of employment rights under TUPE (Transfer of Undertakings (Protection of Employment)) regulations, among other employment law considerations.
• Directors’ duties and liability: directors must act in the best interests of the company and its creditors, especially when insolvency is a risk. They need to be mindful of their duties to avoid wrongful or fraudulent trading and personal liability.
• Contractual obligations: the business must review all existing contracts to identify any clauses that may affect the restructuring process, such as change of control provisions, termination rights, or financial covenants.
• Insolvency law: if the business is insolvent or nearing insolvency, specific laws and procedures come into play, including the potential for administration, liquidation, or voluntary arrangements with creditors. Understanding these laws and the rights of all parties involved is crucial.
• Tax implications: restructuring can have significant tax implications, including VAT, Corporation Tax, and Capital Gains Tax. Proper planning and advice are essential to minimise tax liabilities and take advantage of any available reliefs.
• Intellectual property rights: if intellectual property (IP) is a key asset, it is important to ensure that these assets are protected and managed correctly during the restructuring process.
• Data protection and privacy: companies must handle any personal data in accordance with data protection laws, especially when transferring data as part of a business sale or restructuring.
• Financing arrangements: restructuring often involves refinancing existing debts or securing new financing. This requires careful negotiation and legal documentation to ensure the new financial structure is sustainable and compliant with legal requirements.
• Regulatory approvals: depending on the sector, regulatory approvals may be needed to proceed with restructuring. This could include approvals from competition authorities, industry regulators, or other governmental bodies.

The experienced restructuring and insolvency solicitors at JMW can provide expert advice on all aspects of this process, helping those involved to ensure compliance with all legal requirements and navigate the restructuring process successfully.

Why Choose JMW?

Our expert restructuring and insolvency solicitors pride themselves on delivering clear and concise legal advice that is suited to the unique requirements of you and your business, and implementing bespoke commercial solutions to achieve optimal outcomes. 

The team is consistently ranked in Chambers & Partners and the Legal 500, with numerous members of the team being recognised as leaders in this complex area of law.

• ‘An experienced and diligent team which offers a pragmatic approach with creative solutions. They offer direct and concise advice and deliver value for money.’
• ‘Nothing is a problem because they always find a solution. They provide clear advice, are nice to work with and always professional.’
• ‘Very quick to respond, whilst being diligent and thorough.’

We stand by our clients during their most challenging times, offering reassurance and expert legal advice. Our team is approachable and dedicated, and our approach is holistic and client-focused, ensuring that we not only address immediate legal challenges, but also strategise for your long-term recovery and growth.