Solvent Advisory Services’ Post

<<Singapore’s new Simplified Insolvency Programme>> Just over four years ago, as part of Singapore’s response to the COVID-19 pandemic, amendments to the Insolvency, Restructuring and Dissolution Act 2018 (“IRDA”) were introduced in Parliament to establish a Simplified Insolvency Programme (“SIP”) that would assist micro and small companies requiring support to restructure their debts for business rehabilitation, or to wind up if business was unviable. On 11 November 2024, a Bill to amend the IRDA was introduced in Parliament; if passed, it will establish a new SIP as a permanent legislative feature of Singapore’s restructuring and insolvency landscape. The new SIP will be available to a broader swathe of companies. This is something that the Insolvency Office has been working on for some time together with the Ministry of Law, Singapore HQ and the Legislation Division of the Attorney-General's Chambers, Singapore, taking in feedback from industry and stakeholders. It’s heartening to see all the hard work finally come together. The Bill can be viewed here: https://lnkd.in/gJaK6M8a). More details about the proposed amendments can be found here: https://lnkd.in/gktqPg9A Stay tuned for the Second Reading of the Bill in 2025. #restructuring #insolvency

[#restructuring] Ministry of Law, Singapore on November 11 introduced proposed legislative changes in Parliament to make the Simplified Insolvency Programme (SIP) a permanent feature of the Insolvency, Restructuring and Dissolution Act. The SIP was first introduced during the #pandemic to help micro and small companies to restructure their debts, or wind up, via a simpler, faster and cheaper insolvency process. It has since been extended three times. In the press release, the Ministry said that it would tweak the #SIP so that it would have one general eligibility criterion (i.e., up to SGD 2 million in a debtor’s total liabilities), a simpler application process and more effective administration. The proposed changes will be debated at the next available Parliament sitting. Read the full press release at https://lnkd.in/gvkQz43c. #SME #debt #restructuring #windingup #IRDA

How to make Insolvency more Soluble :- "Making insolvency more soluble" involves simplifying and improving the insolvency process for businesses and individuals. Key strategies include: 1. Legal Reforms: Streamlined Procedures: Introduce fast-track insolvency processes for smaller businesses. Simplified Documentation: Reduce bureaucratic complexities and streamline paperwork requirements. Time-bound Resolutions: Set strict timelines for different stages of insolvency to avoid prolonged proceedings. 2. Technology Integration: Digital Portals: Create centralized platforms for case filings, creditor claims, and updates. Automated Assessments: Use AI to assess assets, liabilities, and repayment capabilities efficiently. 3. Creditor Involvement: Clear Communication: Establish transparent channels between debtors and creditors. Structured Negotiation: Implement mandatory pre-insolvency mediation to explore restructuring options. 4. Financial Support: Rescue Financing: Encourage policies that provide interim financing to viable businesses under insolvency. Government Schemes: Introduce grants or subsidies for small businesses undergoing restructuring. 5. Education & Awareness: Training Programs: Offer education for business owners on financial health and early warning signs of insolvency. Legal Literacy: Promote awareness of insolvency laws and rights among businesses and individuals. 6. Global Best Practices: Benchmarking: Adapt successful models from countries with efficient insolvency frameworks (e.g., Chapter 11 in the U.S.). Cross-border Coordination: Improve international insolvency cooperation for companies operating globally.

In times of financial distress, individuals and businesses may find themselves facing insolvency. This is a situation that involves the intervention of an official receiver. But who exactly is the official receiver, and what role do they play in the insolvency process? Read our blog to find out more,

IS MY BUSINESS INSOLVENT? Hey, it's Chris Worden from Director First! Navigating the world of UK corporate insolvency can be tricky, but I'm here to help. Today's big question: Is your business insolvent? Let's break it down with three crucial questions: 1️⃣ Can You Pay Debts on Time? If yes, you're in the clear. If not, uh-oh, insolvency might be knocking. 2️⃣ Liabilities vs. Assets: Who's Winning? If assets cover liabilities, you're safe. If not, and selling assets won't cut it, insolvency's at the door. 3️⃣ Legal Actions Lurking? A CCJ against your company? That's a clear sign of insolvency. 🚨 So, What to Do if Insolvency Strikes? Director duties shift. Prioritize creditors, not just profits. Seek insolvency advice pronto. Some businesses face temporary insolvency, but early advice is key. 👉 Remember: Your Responsibilities Change! No more solely chasing profits. Don't worsen creditors' positions. If insolvency hits, reach out for expert advice. 🔄 Turning Tides? Some businesses rebound from insolvency, and that's okay. Seek help, strategize, and get back on solid ground. 🙌 Hope this breakdown helps! If you're dealing with insolvency or just want more insights, reach out. Chris Worden, Director First. ☎️ 0800 086 2766 book a free call with me here https://lnkd.in/epnRrHjV #businessadvice #businessdebt #liquidation #businessownersuk #insolvency #businesshelp #expertadvice #financialeducation #bouncebackloan #companydirector #insolvency #bouncebackloan #redundancyrights #businessdebt #companydirector #businesstiktok #FinancialWellness #InsolvencyExperts #DebtSolutions #FinanceTips #DebtManagement

If your business is experiencing financial difficulty you may be thinking of seeking professional insolvency help to rescue the company, or close it down via an official procedure. Or perhaps your company is solvent but it serves no further purpose, or you wish to retire? In either case, as a company director you can appoint your own licensed insolvency practitioner (IP) to advise and provide practical support. An IP will offer a professional assessment of your business’ financial position. This is a crucial factor if you believe your company may be insolvent, as it’s important that you don’t trade under these circumstances. https://lnkd.in/eMchfKyC

Insolvency Spotlight: Pre Pack Administration Pre-pack administrations have long been a controversial process in UK insolvency. Recent regulatory changes have aimed to strike a balance between business rescue and creditor protection. For the uninitiated, a pre-pack administration involves the pre-arranged sale of a company's business or assets, typically negotiated before the appointment of an administrator and executed immediately after. While this can preserve value and jobs, it has faced criticism for lack of transparency and potential abuse. Key changes in the current regulatory framework include: - Mandatory Independent Evaluations: for connected party transactions, an independent evaluation is now required. This aims to ensure the deal is fair and represents the best outcome for creditors. - Enhanced Transparency Requirements: Administrators must provide more detailed explanations of the rationale behind the pre-pack sale, including alternative options considered. - Creditor Protections: New measures give creditors more say in the process, including the ability to request additional information and challenge the sale more easily. Regulatory Oversight: The Pre-Pack Pool, while voluntary, has been strengthened and given more teeth in its oversight role. These changes could have implications for how accountants now advise their clients: - Earlier Engagement: The need for independent evaluations means starting the process earlier. - More Detailed Documentation: Be prepared to assist in producing more comprehensive reports justifying the pre-pack approach. - Stakeholder Management: With increased creditor involvement, managing stakeholder expectations becomes even more crucial. If you would like some more information or to discuss a potential case please get in touch.   📞 020 3576 3854 📧 info@rtturnaroundandrecovery.co.uk #Insolvency #prepackadministration

Navigating financial challenges and potential insolvency as a UK company director can be incredibly daunting. Yet, understanding the risks of continuing to trade while insolvent is crucial to protecting both yourself and your business. Is your company struggling to pay its debts when they’re due, or do its liabilities outweigh its assets? These are signs of insolvency, and ignoring them can have severe consequences. **Key Risks and Offences:** 1. **Wrongful Trading**: Continuing to trade without a realistic recovery prospect can result in civil penalties under the Insolvency Act 1986, including fines, personal debt liability, and disqualification from directorship. 2. **Fraudulent Trading**: Engaging in deceitful practices to mislead creditors is a criminal offence, leading potentially to imprisonment. **Steps for Safeguarding Your Business:** - **Seek Professional Advice**: Connect with a licensed insolvency practitioner early to steer your decisions wisely. - **Document Decisions**: Keep records of board meetings to justify decisions during any formal insolvency processes. - **Communicate Transparently**: Maintain open lines with creditors to avoid accusations, such as preference payments. - **Avoid Deepening Insolvency**: Be wary of postponing financial commitments that could worsen your company's standing. **What’s Next?** Assess your company’s solvency, develop a recovery plan, and don't delay in seeking guidance. At Solvency Options, we offer confidential advice to help you manage insolvency risks effectively. Contact us today to safeguard your company’s future and discuss your concerns in detail. In light of recent news where several UK companies face consequences for insolvent trading, what proactive measures have you implemented in your own business to maintain financial health? Share your thoughts, or reach out to discuss how these insights might apply to your situation. Your business's stability could hinge on the steps you take today.

7×7 Group of Companies Insolvent: Investors’ Money at Risk After Insolvency   What had been anticipated is now a reality: the 7×7 Group of Companies is insolvent and will file for insolvency. This was communicated to investors in a letter from the board dated October 14, 2024. For investors who have invested in various capital assets of the 7×7 Group, […]

Business owners facing insolvency are often unaware that they have a variety of options to resolve creditor claims and rescue their business. Meanwhile, advisors must navigate complex legal and financial landscapes to protect their clients. Join us for a breakfast event where our expert panelists, Demian Walton, Rajan Verma and Robert Osler will share actionable strategies for managing insolvency, including: ▶️ How to use formal insolvency processes to keep the business operations running, such as voluntary administration, creditors' voluntary winding-up, and small business restructures; ▶️ Understand “legal” phoenixing, and how it can help businesses continue operating while managing creditor claims; ▶️ Explore licensing arrangements that minimise the risk of liability associated with phoenixing activities; and ▶️ Gain insights into tax and structuring considerations that can support a successful business recovery and protect assets. This event also offers a valuable opportunity to expand your network by connecting with other business owners and professional advisors over a light breakfast. Event Details Date: Thursday, 14th November, 2024 Time: 7:30 AM – 9:00 AM Venue: 80 Collins Street, North Tower, Melbourne 3000 Spaces are limited, so please secure your place today by clicking the link below https://lnkd.in/gCuYxHku