Written by David James Oliver on 09/07/2024
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.
In the realm of business, challenges often arise leading to financial distress, endangering not only the company itself but also stakeholders such as customers, suppliers, lenders, and employees. When faced with such adversities, seeking corporate recovery and insolvency support becomes imperative for survival.
Insolvency and bankruptcy, although often used interchangeably, denote distinct financial states. Insolvency signifies the inability to fulfill financial obligations, while bankruptcy is a legal declaration of the inability to repay debts. Insolvency may manifest as cashflow insolvency, lacking accessible funds to pay debts, or balance sheet insolvency, where debts exceed assets. Bankruptcy, the final stage of insolvency, involves asset evaluation for creditor repayment, marking a permanent financial setback.
Addressing insolvency and potential bankruptcy is paramount for preserving stakeholder interests and business continuity. Financial distress not only jeopardizes the company’s viability but also impacts customers, suppliers, lenders, and employees. Timely intervention through corporate recovery measures can mitigate losses and facilitate the revival of a struggling business, safeguarding the interests of all involved parties.
Identifying financial distress indicators and initiating corporate recovery efforts at the earliest signs of trouble is crucial. Waiting too long to address financial challenges can exacerbate the situation, making recovery more challenging and costly. Companies should proactively assess their financial health and implement recovery measures promptly to maximize the likelihood of successful turnaround and avoid the irreversible consequences of bankruptcy.
Implementing corporate recovery strategies offers several key benefits to businesses facing financial difficulties:
Entering into corporate recovery involves several key steps:
Our team of expert solicitors specializes in providing comprehensive assistance to a diverse range of clients, including businesses, insolvency practitioners, lenders, and individuals. Leveraging our in-depth knowledge and experience, we are dedicated to guiding our clients through every step of the process, including administration, bankruptcy, and liquidation (both compulsory and voluntary). In addition to offering advice on potential liabilities that may arise, we go above and beyond to ensure that our clients achieve the best possible outcomes in their financial recovery journey.
Share to your network
A response to the inquiry will be sent to the provided email within 2 working days.
putranto@putranto-alliance.com
Jl. Denpasar Raya Blok C4/24
Kompleks Menteri, Kuningan
Jakarta Selatan, 12950, Indonesia
Click the icons for our social media
SHARE