When your company is facing insolvency, it can be a stressful time for all involved. You want to be able to make a plan that will help to decide your future. When insolvency happens, an insolvency practitioner will be assigned to help you navigate through the process. For this to be a smooth process, there is going to be some information that needs to be readily available to the practitioner before your meeting. Principle Insolvency is here to talk about documentation that your insolvency practitioner will need to have access to.
Make Sure Your Insolvency Practitioner has Access to These Documents
As you prepare for your first meeting with your insolvency practitioner, make sure they have had access to the following documents:
– List of Creditors: It is important that the practitioner has an understanding of the debts that the company is carrying. Not only do the practitioners need to know the creditors, but they need to know the class of the creditor. That way, practitioners can determine what assets the creditors are entitled to.
– Account Application Folder: There will also be account applications to go through. This helps the practitioner identify any possible guarantees that could survive the liquidation process.
– Asset Register: It is also important that the practitioner has access to the records showing the assets the company owns. If there are any assets that are recoverable, it can help cover the fee of the insolvency practitioner. If there aren’t any recoverable assets to cover the fee, often the practitioner will require an upfront fee before their services will be provided.
– List of Bad Debts: Sometimes, bad debt can be written off. They may be recoverable or there may be a refund that is available as a result of the write off.
– Debtors List: There are likely outstanding debts that the company is dealing with. Hopefully, they are supported by documentation. The practitioner will be looking for any that are recoverable to help bring in some cash.
– Employee Entitlements: There are wages, holiday pay, sick leave, or other entitlements that are probably owed to the employees and staff. It is important that they are compensated so that they don’t walk away from their positions.
– Lease Agreement: Many companies lease the property that they do business on. If this is the case, you will need to provide the practitioner with the lease agreement that clearly states the terms.
– Financial Statements: The financial statements that are prepared by the company’s accountants will also need to be provided to see whether or not they align with all the other documentation your company has.
Insolvency Services in Auckland, Hamilton, Levin & New Zealand Wide
If you are facing insolvency as a company, you can turn to Principle Insolvency to take you navigate this challenging time. We will show you what your options are as you work to move forward with insolvency. Call us today!