Corporate Restructuring

When a business wishes to reorganise its legal ownership or operations in a business restructuring to make it more profitable or efficient, there is usually a role for a commercial lawyer to play in ensuring compliance with all corporate laws and regulations and that the company and its directors can move forward on a sound financial and legal basis.

Restructuring is often necessary because of a financial crisis such as bankruptcy or other lack of corporate financial liquidity, including forced repayment of debt.

In those circumstances, a change of ownership through a merger, demerger, management buyout by management or other business may be necessary.

Re-financing debt, selling parts of the company to another business or increasing the company's equity by issuing shares are some of the ways in which financial losses may be eased through a corporate reorganisation.

Management involved in situations such as these usually will seek outside financial and legal advisers.

Legal advisers will be needed to draw up contracts and agreements to ensure all parties are protected and that the requirements of the Companies Act are met. Using a solicitor from outside the company will also help management to continue to operate the business without distraction during the period of transition.

Corporate lawyers and re-financing

Involving corporate lawyers when re-financing should enable a business to be more confident when dealing with banks and other corporate finance sources, including private equity houses, and, being one step removed from the company, they may be able to negotiate more favourable terms or see implications of a proposal which have been missed by the client.

Banks may cause liquidity problems by demanding immediate repayment of a debt and then if a business cannot pay, less favourable terms may be offered than the original loan agreement. If a commercial solicitor is involved, he may be able to ease the situation and restore a more equitable arrangement.

Cash management to suppliers and from customers can be a vital factor in ensuring the financial stability of a business and an experienced commercial solicitor can help with drafting contracts and pressing for payments to improve the efficiency of transactions.

Commercially-practical added-value legal advice

Mergers, de-mergers, acquisitions and buyouts can have implications across all the business' activities, such as pensions, redundancy, tax, intellectual property and asset valuation, each of these has a legal element requiring the input of experienced lawyers if the reorganisation is to go ahead smoothly.

The Corporate team at JMW Solicitors is able to draw upon the combined skills of the firm's partners in other fields in order to provide any of the parties in a restructuring with comprehensive, commercially practical, added-value legal advice.

For further information please contact us on 0845 872 6666 or by completing our enquiry form. We will respond promptly.