Corporate Insolvency & Bankruptcy
Insolvency or bankruptcy is often thought of as “the end of the road” for a company. On the contrary, it can facilitate the restructuring and emergence of a viable business. However, timely involvement of experts is key to protecting value – whether that is to provide a credible fallback plan or to help to shape and implement a comprehensive restructuring.
Corporate insolvency processes differ by jurisdiction and require the expertise of qualified bankruptcy and insolvency professionals whose role can either be light-touch to affect a transaction, or more comprehensive, where they take responsibility for the running and direction of a company. The responsibility of an Insolvency Practitioner or Bankruptcy Trustee in any situation is to determine options, strategies and solutions for the rescue of a company or to maximize the value of the assets to repay the liabilities of a business. While they have autonomy to operate within an insolvency framework, the decision and approval on the way forward is voted for by the creditors of the company.
Teneo’s expert team of corporate insolvency and bankruptcy consultant bring decades of experience in establishing and delivering contingency plans and insolvencies across multiple jurisdictions, providing credible fallback plans to protect value or helping to shape and affect a restructuring.
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Contingency planning typically involves careful stakeholder analysis and assessment alongside a commercial and legal review of a company’s financial position to protect a client’s interests and the value of their claim. In many cases, contingency planning can help to avoid formal insolvency.
Company Voluntary Arrangement (“CVA”)
A CVA can provide an opportunity for a company to restructure or compromise its liabilities to unsecured creditors and continue as a going concern. We have market-leading experience in driving an open and honest dialogue with stakeholders to secure support for CVA proposals and deliver the formal process.
Restructuring Plan (“RP”)
This new and powerful insolvency process provides a route to delivering complex restructurings which bind different creditor groups with the support of an anchor creditor class. Our team has had leading roles in all the recent high-profile RP cases, providing us with the insight and expertise to assess for clients whether this is a viable option, how to shape a plan and, using comparator analysis, deliver the desired outcome.
Scheme of Arrangement (“Scheme”)
In support of the legally driven Scheme, we are highly experienced in assessing and shaping the “Comparator” which frames the alternative outcome for a Company should the proposed Scheme not achieve the requisite levels of support.
Administration orders offer companies with a viable business, but which are otherwise financially distressed, breathing space during which plans can be formulated to restructure or refinance, thereby preserving value and protecting employment. Using the “out of court” route, an administration order can be quickly and efficiently obtained, providing an immediate moratorium against creditor action.
This refers to the process where the sale of a company’s business or assets is agreed to prior to the commencement of a formal insolvency process, but the sale is only completed after the appointment of the insolvency office holder (“the IP”). The period between appointment of the IP and completion of the transaction is usually very short (sometimes only a matter of hours).
Creditors Voluntary Liquidations (“CVL”)
In certain circumstances, there may no longer be a viable ongoing business. It is important to deal with this properly to avoid personal liability issues for directors. Our team brings the expertise to support directors in line with legal requirements and take the formal appointment that follows.
Chapter 11 and 15 Bankruptcy Processes
US bankruptcy processes are complex and time-consuming for companies to navigate. Detailed planning, administration and management is required in advance of, during and coming out of any bankruptcy filing.
Bankruptcy-Court Appointed Examiner or Chapter 11 Trustee
Our professionals have performed critical investigative and reporting functions as Chapter 11 trustees and/or examiners in high-profile cases in which management has been accused of fraudulent, dishonest or deleterious acts. This includes Enron North America, Coudert Brothers, Monarch Capital, Gaston & Snow, Granite Funds, and PSINet Consulting Solutions, among others. Teneo’s team served as Chapter 11 Trustee of Refco Capital Markets, one of the largest cases for which a Chapter 11 Trustee was ever appointed.
Business failures can result from inappropriate actions by parties connected to the business. These issues are often complex and multi-jurisdictional. Our team combines insolvency experience across many jurisdictions with forensic and asset-tracing skills. Working closely with legal advisers, we take control, investigate the issues and recover value through asset-tracing and litigation.
International Finance Centre Insolvency Processes
The international nature of many structures requires an understanding of the insolvency and restructuring options available in International Finance Centres. Our experienced team brings expertise in solvent and insolvent appointments across many jurisdictions including Guernsey, Jersey, Dubai, Abu Dhabi, the Cayman Islands and the British Virgin Islands.
Details of the entity providing services, legal and regulatory information in respect of the Teneo entity are also included in our engagement letters.
Teneo Financial Advisory (DIFC) Limited is authorised and regulated by the Dubai Financial Services Authority for the provision of Advising on Financial Products or Credit and Arranging Credit or Deals in Investment services
Specific information relating to our regulated entities which provide services to clients is detailed below:
|Registered Name||Legal Form||Registration Location and Reference||Registered Office||Data Protection||Regulator(s)||Professional Indemnity Insurance|
|Teneo Financial Advisory Limited||Limited Company||England & Wales, 13192958||5th Floor, 6 More London Place, London, SE1 2DA||UK - ZA920639||The Institute of Chartered Accountants in England and Wales (“ICAEW”) C008873136. All insolvency practitioners are licenced by the ICAEW. ICAEW Designated Professional Body licence for a range of investment business activities.||Details of the professional indemnity insurer can be provided on request.|
|Teneo Securities LLC||Limited Liability Company||USA - Delaware||280 Park Avenue, 4th Floor, New York, NY 10017||N/A||Financial Industry Regulatory Authority (FINRA) #151256. Securities and Exchange Commission (SEC).||Details of the professional indemnity insurer can be provided on request.|
Teneo Securities LLC’s Business Continuity Planning
Teneo Securities LLC has developed a Business Continuity Plan (“BCP”) on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our BCP.
The Firm has developed and installed a BCP in the case of any business disruption that causes the Firm to have limited or no communications with its employees or customers. Our plan anticipates two types of business disruptions, internal disruptions which affect only our Firm’s ability to do business (such as a fire in our building) and external disruptions that prevent the operation of securities markets or other firms (such as natural disasters or acts of war).
The Firm intends to stay in business during both internal and external disruptions due to the fact that the Firm employees can conduct Firm related business from alternate off-site physical locations and the Firm maintains an alternate location for the maintenance of its books and records. We anticipate that the Firm will recover from internal business disruptions within 24-48 hours. An outage due to an external business disruption may be longer and is beyond the control of the Firm. However, the Firm will endeavor to resume business as soon as it is possible for the Firm to establish business operations from alternate off-site physical locations.
The Firm’s BCP specifically addresses the following areas related to Firm operations:
- Data back-up and recovery (hard copy and electronic);
- All mission critical systems;
- Procedures to test and determine the Firm’s ability to do business (i.e., financial and operational assessments);
- Alternate communications between customers and the Firm;
- Alternate communications between the Firm and its employees;
- Alternate physical location of employees;
- Critical business constituent, bank, and counter-party impact;
- Regulatory reporting; and
- Communications with regulators.
If you have questions about our business continuity planning, you can contact us (212) 886-1600.