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The company’s undertaking is thriving but the company itself is threatened by insolvency or insolvent? You want to back the entrepreneur up by supporting them financially as the strategic investor? You are afraid of loosing your funds when the creditors, fed up with waiting, will initiate the debt enforcement against debtor’s assets or effect their bankruptcy? Bankruptcy Law offers many investment possibilities and, at the same time, protects the investor. An enterprise or specific assets thereof may be purchased from the official receiver. With debtor’s support, the strategic investor may even benefit from pre-packaged bankruptcy to purchase the insolvent facility in the very beginning of the bankruptcy proceedings without the need to wait for drawing up the insolvency table and the insolvent company valuation to end, which usually takes several months. It is also possible to make an arrangement with the creditors of an insolvent debtor and invest in their enterprise even against the will of the latter. Bottom line is that creditors will gain most if they are able to save their debtor’s company, even if the debtor themselves does not want to cooperate.
Investing in bankrupt’s assets requires knowledge and skills. An audit is essential in order to avoid any unpleasant surprises. Support in negotiating terms with an official receiver and assistance regarding compliance with terms and conditions of a tender, as well as revision of other bidders’ actions for compliance might also come in handy. Negotiating leverage may also be gained by obtaining preemption right to a bankrupt enterprise or an organised part thereof.
What do we do?
We represent investors in negotiations and prepare the documentation regarding asset acquisition. We conduct audits and draw up draft agreements. We develop asset acquisition strategies under Bankruptcy Law.
There is a possibility to purchase debtor’s enterprise, an organised part thereof or specific assets at the exact moment of declaring the debtor bankrupt. In such a case, the investor takes over control of the bankrupt’s enterprise without any need to wait for drawing up the list of creditors or asset valuation by the receiver. Filing a bankruptcy petition is essential (it may be filed by a debtor or by any of their creditors, and in such a case, it may be treated as a hostile takeover of an insolvent debtor).
What do we do?
We serve with our advice to the investor and draw up draft documents required for filing a bankruptcy petition with a request to sell debtor’s assets in a pre-packaged bankruptcy. We assist in the selection of a property valuation surveyor enlisted as a court-appointed expert and serve with legal support in preparing asset valuation. We represent the investor in proceedings aiming at declaring bankruptcy of a debtor, in bankruptcy proceedings; we draw up and negotiate the purchase agreement with the official receiver.
