Insolvency and Financing
Time is a decisive factor.
Time is a decisive factor when you run into financial problems. No matter whether you are a company, an organization or a private person, a number of measures must be taken quickly. The same applies to the members of the board of directors, customers, suppliers or creditors to someone in a financial crisis. Gulliksson has a skilled team of employees who work daily with finding the best solution in every such situation in the fastest possible way.
We have a full range of services for situations of insolvency, where we manage company restructuring, liquidations, compositions and bankruptcies. We are also advisers to creditors, banks, landlords and others who need to supervise a company in crisis.
Other services are monitoring of receivables and giving advice in other matters related to bankruptcy, liquidation and reconstruction proceedings. We can represent our clients in negotiations and litigation concerning, moreover recovery and wage guarantees, include company representative liability, composition negotiations and other insolvency related issues. We regularly assist with risk and cost assessments to prevent and crisis situation.
Our bankruptcy trustees and employees have a solid experience in insolvency law. We can assist you in monitoring receivables and giving advice in other issues regarding bankruptcy, liquidation and restructuring proceedings.
Bankruptcy and insolvency management
A company, an organization or a private individual who more than just temporarily cannot pay their debts shall be declared bankrupt by the district court. The district court also appoints a bankruptcy trustee to investigate the assets and liabilities that exist and then, in the best possible way, convert those assets into money and pay the debts in the order they are specified in the Priority Right Act. Gulliksson employs several bankruptcy trustees with a broad range of skills since the issues arising from a bankruptcy generally extend over several areas of the law.
Recovery to an insolvent estate
In the event of a bankruptcy, the bankruptcy trustee will, in certain circumstances, demand that certain transactions carried out before the bankruptcy is repaid through recovery. Recovery issues are often complicated and require detailed legal and financial expertise. We can represent a client and assist when they receive a recovery demand from a bankruptcy estate.
In the event of a bankruptcy, the employees can under certain circumstances have the right to compensation from the state wage guarantee. After a decision of the receiver, the state can go in via the county council to pay the employees’ wages and holiday pay in accordance with the regulations in the Wage Guarantee Act. We can assist those who have been employed in a company that goes bankrupt and request reimbursement in accordance with the Wage Guarantee Act.
A company with financial problems can perform a company reconstruction to avoid bankruptcy. A reconstruction can be done out of court or in accordance with the Company Reconstruction Act. In principle, a company reconstruction is used to analyse the company P/L and balance sheet, its activities and the situation in general.
Once the analysis is finished, a plan of reconstruction is drawn up with proposed measures to take to relieve the company’s situation. When it comes to company reconstructions according to the Company Reconstruction Act, the district court makes the decision and appoints a restructurer. A company is protected against foreclosures and bankruptcy applications from creditors while it is under reconstruction.
Financing and security rights
The financing of businesses with financial problems requires special care to ensure any receivables and security rights can be enforced against the debtor and competing creditors in the event of an insolvency situation. Gulliksson regularly assists suppliers, creditors, financiers and other interested parties in this type of risk management. This includes a number of different security rights, such as retention of title, liens, mortgages, repossessions and security transfers.
A company can be dissolved through liquidation, which means all its debts are paid off and any surplus is paid out to the owners prior to the company being dissolved. There are two kinds of liquidation – voluntary, decided by the company, and the compulsory liquidation as decided by the Swedish Companies Registration Office. We help companies to implement liquidations and also act as appointed liquidators.