In the wake of the COVID-19 pandemic, we are often asked what our clients should do if a business (such as a supplier, customer or any other contract counterparty) is suffering distress and may be contemplating filing for insolvency. Our guide provides insight on what to do before and after insolvency.
It is, of course, impossible to anticipate every potential scenario, but here are several general “do’s and don’ts” to consider. Recognising that the facts and circumstances differ as to each situation, as always, it is best to consult your restructuring advisers as soon as possible if you believe a business counterparty is suffering financial distress and may be close to insolvency. They will be able to tailor the advice to fit the specifics of the circumstance.