Beware of Inadequate Pre-Insolvency Advisors who offer Business Restructuring advice
One of the significant challenges in the restructuring process is the prevalence of unqualified pre-insolvency advisors. These advisors often lack professional indemnity insurance and appropriate qualifications, leading to the provision of incorrect advice that can have detrimental consequences for the company and its stakeholders. Engaging with such advisors can increase the risk of breaching director duties, which can result in severe civil and criminal penalties under the Corporations Act.
From our experience, utilising these advisors and you will more than likely end up oin the line of sight of the Australian Securities and Investments Commission whom are responsible for investigating any potential breaches of the Corporations Act 2001. As they are not lawyers, legal professional privilege does not apply between the advisor and yourself. This means that everything discussed, documents produced and file notes ae not protected from being disclosed to the courts or other regulatory bodies.
The Importance of Independent Legal Advice
To ensure a successful restructuring process and minimise legal risks, obtaining independent legal advice is crucial. Independent legal counsel can guide directors, shareholders, and the company itself through the complexities of the restructuring. By partnering with qualified professionals who specialise in insolvency law, companies can navigate the intricate landscape of restructuring while safeguarding their interests.
How Our Firm Can Assist
At Brunet Law, we understand the challenges faced by companies undergoing restructuring. Our team of experienced insolvency lawyers, based in Brisbane, Gold Coast, and Sunshine Coast, is well-versed in the intricacies of the insolvency landscape. We offer comprehensive legal assistance tailored to your specific needs, ensuring that your restructuring process is conducted lawfully and effectively.
By engaging our services, you gain access to our expertise in various restructuring strategies, including:
- Debt restructuring: This involves restructuring payment terms with creditors or banks to try and make it easier on the business to assist with repayments and avoid the need to close down the business.
- Debt for equity swaps: This is where creditors accept an equity stake in the business in exchange for a reduced debt or waiving their debt all together.
- Business Sales: If you no longer wish to carry on your business you may wish to sell its assets that you can ultimately close down the companies operations.
- Small Business Restructuring Process: If you have debts under $1 million then you may be eligible to take advantage the small business restructuring process.
We prioritise protecting directors from potential breaches of their duties and guide you to make informed decisions throughout the restructuring process. Our aim is to help you achieve a successful outcome while mitigating risks and maximising opportunities for your business's future growth.