Insolvency and
reconstruction specialists

RECONSTRUCTION

At Meertens we are focused on developing strategies to help businesses find improvements and progressive solutions when financial complications arise. Our advice to business owners facing financial uncertainty is to; consult with us as soon as possible; produce accurate accounting reports for the business; seek legal advice; and identify opportunities to refinance, restructure or refocus the company’s activities, paving the way for long-term viability.

Reconstruction may involve any of the following steps: a partial downsizing of business operations; reducing a workforce; effecting asset sales; a change of ownership; or the introduction of fresh working capital. Reconstructing a corporation may be achieved either through the appointment of a voluntary administrator or a restructuring practitioner under the safe harbour provisions.

Informal reconstruction efforts might involve taking guidance on how best to: approach select creditors with a payment arrangement; develop a suite of management reports to monitor a business’s short term funding requirements; identify underperforming processes or cost centres within a business; mitigate continuing operating losses; and strategise future working capital management.

RECOVERY

Early action and the proactive assessment of a potential insolvency situation, with a goal for recovery and business survival, always takes precedence. Choosing the right form of external administration depends on the individual circumstances of the matter and in some cases, an informal appointment is all that is required.

Early action to remediate a difficult financial situation typically enhances the recovery value of a business’s assets, which benefits employees, trade creditors and Directors’ personal guarantee exposure to a business’s external debt obligations.

Early, proactive, assessment of a potential insolvency issue may result in the business, or at least part of it, surviving, and typically enhances the recovery value of assets. Whereas, winding up a corporation typically has a devastating impact on a business’s residual asset values.

Whilst the genesis of a corporation’s breakdown can be years in the making, identifying and accepting the prospect of possible failure, and then taking preventative or mitigating steps, greatly assists the realisable value of business assets.

The early, proactive, assessment of a potential insolvency issue is a valuable approach to adopt, as it:

  1. benefits the corporation’s creditors who rely on distributions to reduce their total loss;
  2. provides an asset base to leverage the provision of fresh working capital against in a possible workout scenario; and
  3. reduces a director(s)’ debt load assumed under personal guarantees granted in respect of the corporation’s debts.

REASSURANCE

Supporting and reassuring the range of stakeholders in a business, including its creditors, employees, lenders, and shareholders, during highly stressful situations, to work out solutions within a rigorous and ethical framework, is paramount to Meertens. It is at the heart of all that we pride ourselves in.

James’s wealth of knowledge and experience in personal and corporate insolvencies has seen him develop highly empathetic, interpersonal skills; an essential attribute when supporting stakeholders burdened with the realities of profound personal and commercial loss. He is with you all the way to deliver effective commercial solutions, with an affirming and mutual goal of recovery.