Financial Restructuring (Corporate and Individual)

Life may go up and down, so is business and personal finance. In particular, in the era of financial tsunami or turmoil, business or individual may face with low tide and dire strait financially. During such situation, someone may choose to wind-up the business or go for personal bankruptcy. This is not necessarily the only way to go for. The other alternative is a debt restructuring, in case of limited company by way of re-financing and cash-flow management or scheme of arrangement; or in case of an individual by way of individual voluntary arrangement.

Corporate Recovery & Insolvency

Insofar as a limited company is concerned, the indicator of a problematic business is the cash flow problems and unbalancing income-loan gearing ratio. If such indicator light is on, we could assist you in diagnosing the problems, including cash-flow analysis, re-financing your business, credit risk control management, internal control audit. In worse case, we may even assist you in conducting hair-cut exercise, which may a private arrangement in a debt-cutting or under a statutory regime in designing and implementing a scheme of arrangement under the Companies Ordinance, the Laws of Hong Kong.

In short-term fund raising, we may:

  • Assist in applying SME financing
  • Evaluate financial performance
  • Recommend financing strategies and methods
  • Advise on fund raising possibilities
  • Assist corporation in scheme of arrangement

In rescuing the business assets, we may:

  • Provide advisory service on corporate restructuring
  • Conduct financial investigation
  • Arrange receiver and manager to rescue the sick business operation
  • Assist in corporate assets recovery
  • Prepare Statement of Affairs
  • Arrange liquidator for corporate liquidation and winding up

Individual Financial Restructuring

Insofar as individual is concerned, before you decide go bankrupt (which may have profound implication and bearing on and in your personal future life), we could assist you in conducting a thorough personal finance analysis. There are two options:

  • Debt Restructuring Plan (DRP)
  • Individual Voluntary Arrangement (IVA)

Debt Restructuring Plan is to negotiate a scheme of debt restructuring with individual creditors. The procedure of this arrangement is simpler than IVA which requires court order; therefore, DRP relatively saves in time and cost. However, the success of the arrangement very much depends on the individual creditor and the preferred number of creditors is below 5.

Under this arrangement, we may assist client in preparing proposal and negotiating with individual creditors.

Individual Voluntary Arrangement (IVA) is a legal and government approved method of resolving debt that would avoids the consequences of bankruptcy. If suitable, we would recommend you in applying for individual voluntary arrangement. On this, we would assist you in prepare the proposal for the arrangement. We could also act as your nominee for the implementation of your individual voluntary arrangement. With our business connection, immediately consultation could be sought from various professionals, including lawyer, bankers or even insolvency practitioner.

For more details on our services or understanding on individual voluntary arrangement, please go to the following link: iva.orion.hk