Insolvency

Bankruptcy or liquidation may not be inevitable. We advise clients prior to entering a personal bankruptcy or corporate insolvency process on the available options to recover, and assist to carry out turnaround strategies.

By seeking professional advice at an early stage of the problem, a company may be rescued and avoid claims or entering insolvency proceedings.

Our team has the tools and the experience to offer practical professional advice for business rescue and turnaround and to implement the suitable strategies and methodologies to achieve the best possible and beneficial result.

Voluntary Liquidation out of Court

Members’ Voluntary Liquidation

A members’ voluntary liquidation may be appropriate where the company is solvent and able to pay its liabilities, and is wished to be brought to an end. It is usually sought by the members of the company in order to liquidate and dissolve the company in an organised manner and if any, to receive the assets of the company in the form of liquidation dividend.

Our team has strong experience to advise and act as appointed liquidators in members’ voluntary liquidations. We provide consultation and implement the best available options for the fastest and most cost – efficient closure of your company.

Creditors’ Voluntary Liquidation

Where the company is insolvent, and it is wished to be placed into a liquidation, the route to follow is the one of voluntary winding up by the creditors, where the creditors and the members shall approve the liquidation and the appointment of a liquidator to carry out the liquidation.

We have extensive expertise in acting as appointed liquidators in creditors voluntary liquidations and can assist with the tracing of the company’s assets and to realise them; to reach agreements with the company’s creditors; investigate the company’s prior business affairs and directors’ decisions; and to carry out the liquidation in the most efficient manner for all stakeholders.

Compulsory Liquidation by the Court

The Cyprus Companies’ Law, Cap.113 provides the procedure for the winding-up of a company by the Court.

The most common grounds on which a company may be placed in a compulsory winding-up by the Court are where the company is unable to pay its debts, or where the Court is of the opinion that it is just and equitable that the company should be wound up.

Where an application is about to be or has been filed with the Court for a winding-up order against a company, attention must be given by all interested parties to the actions they must take. Directors of the company, shareholders, and creditors, each shall take precautions and actions in order to safeguard their rights and avoid being found foul of their obligations.

We provide advice at the preliminary stages of a compulsory winding-up, before the filing of the relevant application to the Court, during when the application is under consideration by the Court and after the issuance of the winding-up order.

We accept appointment as liquidators either alone or jointly with others, and as provisional, or permanent ones and have the expert knowledge and necessary experience to carry out the liquidation procedure from A to Z.

There are various (business, tax or other) reasons why a company may wish to reorganize its structure or its financial obligations. We advise clients of the possible solutions to achieve in each case desired result, with the most efficient mechanisms.

We have experience in both out of the court restructurings, and reorganisations or arrangements which are sanctioned by the court.

Out of court arrangements can involve negotiation with creditors and other interested parties, conclusion of agreements for the re-arrangement of rights or obligations, arrangements for the future management of companies, or the separation of assets and liabilities.

Arrangements that are sanctioned by the court, include mergers, de-mergers, spin-offs or other types of amalgamations or reorganizations, as the stakeholders may desire to implement and the needs of each case direct.

We advise at an early planning stage, during the preparatory period and during implementation of such compromises or reorganisation plans, always aiming to bring about the most time and cost efficient result.

A receiver, or receiver and manager, may be appointed by the Court to take custody of certain company property, or may be appointed out-of-court pursuant to the powers of a security holder under an agreement, usually a debenture.

We act as out-of-court appointed receivers by creditors, banks and financial institutions, or as court-appointed receivers in a neutral or custodian capacity among business disputes or where it is required to safeguard real estate or other assets.

We provide advice to company directors and appointed receivers in relation to their duties and obligations, and the manner they should act in order to bring about the best possible result in the most time and cost-efficient manner.

We take possession of company property and where our mandate requires, manage the company business and its assets by taking appropriate decisions and actions in order to preserve and maximize the value.

Our approach is always, finding practical ways to resolve disputes fast, by reaching agreements with interested parties or if required, taking drastic decisions, for the value of the assets not to deteriorate, and for creditor debts to be paid fast to the maximum possible extent.

LLPO Law Firm can advise on and assist with the following:

• Recovery and turnaround strategies
• Options available prior or after the commencement of an insolvency process
• Voluntary restructurings, compromises, or other arrangements
• Compulsory liquidation proceedings
• Appointment of liquidators, receivers, or examiners
• Court actions or other proceedings for debt recovery or insolvency processes