Insolvency can give rise to many and varied causes of action against many and varied respondents, many suspecting but some entirely unsuspecting. In terms of corporate insolvency, liquidators will be charged with collecting in available assets, which will include pursuing available causes of action.
There are many other types of claim office-holders may bring, but in all cases they will only wish to do so in the expectation that they will swell, rather than deplete, the eventual pool of money available for distribution to unsecured creditors. As we all know, however good a claim might be, if there is no return at the end of it, it’s not worth pursuing. Examples include:
Against former directors for Wrongful Trading under S.214 of the Insolvency Act 1986 (the Act) for an Order that they contribute to the insolvent company’s assets;
Against creditors of a company who received property or other assets from the insolvent company in circumstances where the transaction can be impugned as a Preference under S.239 of the Act; or
Against any person who has received a gift or discounted asset where such transaction can be challenged as an undervalue transaction under S.238 of the Act.
Insolvency claims often throw up unique situations, can be hugely complex and are often replete with high emotion. This heady mix can make normal bi-lateral negotiations tricky, but these are just the kinds of situations where the involvement of a third party neutral mediator can prove extremely beneficial. Commerciality and pragmatism is at the core of the process.
Corporate restructuring often involves navigating complex challenges, balancing competing interests, and managing sensitive communications. A skilled mediator can bring neutrality, expertise, and a structured approach to these processes, helping organisations address conflicts, align stakeholder priorities, and foster collaboration. By facilitating open dialogue and crafting practical solutions, a mediator can ensure smoother transitions, minimise disruptions, and support long-term organisational stability.
Explore individual mediators below or contact us to discuss the best mediator for your dispute.
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