Corporate Restructuring & Insolvency

Druces LLP has a tradition of successful involvement for our clients in business turnaround, rescue, and restructuring. We provide practical legal advice through the spectrum of turnaround to formal insolvency. Our lawyers provide a full service to companies in financial difficulties as well as to banks and other lenders, trade creditors and suppliers. We also act for office-holders in formal insolvency procedures such as administration, company voluntary arrangements, receiverships, and liquidations. Our expertise in this field has been recognised in the Legal 500 rankings for 2021.

We often put together cross-disciplinary teams of experts in corporate law, corporate finance, commercial property, tax, dispute resolution, employment and pensions who are able to work swiftly in implementing our clients’ commercial requirements and strategies. Our experience is not limited to domestic UK groups – we have expertise in cross-border transactions and assignments involving Europe, the USA and other parts of the globe.

Coronavirus restructuring services for businesses

The Corporate Restructuring Team is on standby to assist you with your requirements during this time. Working in conjunction with your management team, tax advisers, accountants and, if required, Insolvency Practitioners, we will navigate you through the complex legal landscape, to put together and implement a restructuring plan that works for your business.

We will work to ensure that your business is in the best shape to grow and adapt to the changed environment. We also offer expert legal advice and assistance to businesses and boards of directors on insolvency concerns that are faced. Understanding the need for quick and clear advice in these situations, our service is designed to help reduce the stress and worry for our clients. Please contact us for an initial, no obligation consultation.

The In-House Lawyer

We have regularly featured as a contributor to The In-House Lawyer, a magazine for in-house counsel in the UK and EMEA, on a range of restructuring and insolvency topics. Our article archive can be found here.

Legal 500 commentary

The Legal 500, 2021 recognises the Druces team as ‘knowledgeable and responsive‘ providing ‘accurate and cost efficient‘ advice across the full range of restructuring and insolvency work, including complex restructurings, directors’ duties/corporate governance advice and insolvency litigation.

Our recent experience

• We advised liquidators on a solvent restructuring of a property investment group, pursuant to s110 of the Insolvency Act 1986 – our Restructuring team acted for the joint liquidators in the solvent restructuring of a group of companies, whose assets were valued at circa £50 million. The restructuring involved creating six groups of companies from one group of companies. It also involved the release and restatement of debt.

• Acted in the restructuring of a group of companies, running a manufacturing business, to separate out two trades, which had different needs and required separate focus. This was done by way of a capital reduction demerger. The group involved a subsidiary based in Asia.

• Acted in the restructuring of a multimillion pound professional services group of companies, by way of a capital reduction demerger.

• We received instructions from the liquidators to act on an application to the Companies Court to obtain a Berkeley Applegate and other orders permitting the liquidators to charge costs for the administration, processing and sale of £14m of wine held by an insolvent wine investment company.

• We advised on a possible refinancing of a high profile lingerie business. We advised the board on their duties and responsibilities given the company’s distressed financial state.  We advised and acted in the directors’ notice of intention to appoint Administrators which created a moratorium giving a breathing space over the Christmas holiday season (2015) and advised on a potential sale of part of the business (including dealing with due diligence and communications with interested parties).

• We have been advising an alternative energy company in financial difficulties. We are advising the company in “the twilight zone”. The shareholders are taking an active interest and the company is in CVA.  We are working closely with the administrators as the Supervisor of the CVA.

• We assisted the joint liquidators in the liquidation of a company which traded in the business of prop rental.  The company’s landlord made an application to put the company into administration and a sale of the company’s business to an unconnected company was achieved in the administration.  The company subsequently entered creditors’ voluntary liquidation. We have continued to advise and assist the officeholders in relation to various matters since then.

• We received instructions to manage the legal and contentious aspects arising out of the insolvent estate of an ultra high net worth individual (deceased).  The main contentious element of the work involves the resolution of a claim against a company within the estate for repayment of a €multi-million loan, involving allegations of fraud and cross-border proceedings in England & Wales and France.

• We advised the director of a large tour operator on proposed claims by the administrators for wrongful trading, breaches of statutory and fiduciary duties and preference payments.  The claim involves complicated issues in relation to the use of foreign exchange facilities in the travel sector.

• We acted for a high profile specialist sports car manufacturer, pre-administration and then subsequently acting for the administrators.

Related Services

• Administrations, Company Voluntary Arrangements & Liquidations
• Advice to Company Directors
• Advice to Officeholders
• Borrowers and Lenders
• Buying from Distressed Corporates
• Insolvency Litigation
• Other Re-Organisations and Exits
• Turnaround and Rescue