INSOLVENCY AND WINDING UP PROFESSIONAL ENGLISH IN USE FOR LAW

 

PROFESSIONAL ENGLISH IN USE FOR LAW 24. INSOLVENCY AND WINDING UP

 

A Insolvency Charles Stanley, an insolvency lawyer, is advising a client ‘Insolvency describes the financial state of a company when its debts or liabilities exceed its assets and available cash. As soon as a company is insolvent, it must take action to resolve the situation. This may include renegotiating debt, realising assets to discharge debts, or even borrowing more money and increasing the liabilities. There’s a wealth of B Insolvency scenarios Look at this extract from a leaflet describing possible insolvency scenarios.   Action initiated Result A charge holder (see unit 22) – including holders of floating charges created since the Enterprise Act 202 – or the company directors file notice at court for an administration order. An order is made by the court appointing an administrator to take control of the company and to maintain it as a going concern. The company is then said to be ‘in administration.’ EXERCISES 24.1 Choose the correct word in brackets to complete the sentences. Look at A opposite to help you. 1. A (debtor/creditor/director) is a person or body owed money by a company. 2. The creditors may take action in relation to a/an (bankrupt/solvent/insolvent) company that will result in the company becoming subject to one of several insolvency regimes. 24.2 Answer the questions. Look at B opposite to help you. There may be more than one possible answer 1. Who can initiate a.        voluntary liquidation? b.       a company voluntary arrangement? c.        Compulsory liquidation? d.       A company going into administration? 2. How can a charge holder obtain an administration order? 24.3 Complete this extract from an email about an insolvency proceeding with prepositions from A and B opposite.

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