Call 02 8860 9585
S
Insolvent?
• Insolvency ranges from a small businesses owing a few thousand dollars to large corporations owing billions. • There may be wide range of reasons from falling out with Business Partner, Fraud, Insufficient cash, Poor financial management, Poor product or service, declining economic conditions etc. • Many owners of failed businesses tell us they lack cash flow, but Cash flow is only a symptom of one of the above reasons, not the cause. • If you cannot pay your bills when they become due and payable, you may be insolvent. • Liquidation or Administration may be the only solution. We know excellent honest Liquidators and Administrators to assist you. • Unable to provide timely and accurate financial information regarding the financial position and/or make reliable forecasts
©
GENERAL & COMMERCIAL LAWYERS | SYDNEY | NORWEST BUSINESS PARK| BAULKHAM HILLS
“Forward Thinking, Experienced, Resolute”
RESOLUTE LAWYERS
What Is Insolvency?
The following examples is not an exhaustive List of potential indicators to decide whether or not there are grounds to reasonable suspect insolvency: • Continuing Losses • Liquidity ratios below 1 • Overdue State & Commonwealth Taxes • Poor relationship with your Bank • No access to alternative finance • Inability to raise further equity capital • Suppliers placing company on COD • Creditors unpaid outside of trading terms • Issuing posted dated cheques • Dishonoured Cheques • Special arrangements with creditors • Demand letter, Summons, and Judgements
& Associates
