We have extensive experience of contentious insolvency work, including acting for and against creditors, shareholders and former directors of companies in the hands of an administrator, liquidator or receiver. Our expertise includes high-value claims for wrongful trading, fraudulent trading, misfeasance, transactions at an undervalue and preferences payments. We have experience acting on matters relating to the financial sector, including for distressed hedge funds and the investors, directors and investment managers of such funds.
As a specialist litigation firm we can act against the major financial institutions and organisations against which many other law firms cannot act, because of conflicts of interest. This includes us being able to act against major law firms and other professional services, firms and insolvency practitioners. Our team has a reputation for providing clear, targeted and practical advice.
Our lawyers have experience of dealing with statutory demands, petitions and other insolvency related claims and hearings from both the creditor and debtor side.
Examples of recent insolvency-related matters on which our team has worked on include:
- Re Infund LLP:  EWHC 1306 (Ch) – Proceedings ancillary to a US$2billion share dispute in Mexico. The English Court considered for the first time the meaning of certain statutory provisions applying to both companies and LLPs in the context of an administrative restoration. The Court determined that it had the power to reverse the restoration of an LLP in certain circumstances.
- Acting for two former directors of an insolvent English company that was part of a worldwide corporate group which manufactured and sold products sporting a globally recognised brand and household name. The company’s liquidators issued misfeasance proceedings seeking in excess of USD$240m from CYK’s clients and one other former director (who was separately represented). The case settled on confidential terms.
- Defending the directors of a large group of companies in administration in respect of claims made under personal guarantees.
- Acting for the directors of a company in Administration further to allegations of breach of fiduciary duty and related applications under S.423 of the Insolvency Act 1986.
- Advising a former director of an insolvent English company in relation to various potential claims and the Liquidators’ conduct of the liquidation.
Our lawyers also have significant expertise and experience in advising on issues arising from cross-border insolvencies, in particular insolvencies in off-shore jurisdictions, such as Jersey, Guernsey, the Cayman Islands, the British Virgin Islands, Hong Kong and Singapore. For example, we acted for the successful respondent in an application to lift a stay of arbitration proceedings pursuant to the Cross-Border Insolvency Regulations 2006: VTB Bank (Austria) AG v Kombinat Aluminijuma Podgorica AD  EWHC 750 (Ch).
Our broad disputes resolution practice, including multi-jurisdictional asset recovery, misfeasance, fraud, and professional negligence disputes, gives us additional rounded expertise enabling us to deal with most contingencies that might arise in an insolvency context. We also have close working relationships with some of the top ranked insolvency chambers and, where appropriate, will instruct and work in conjunction with specialist insolvency barristers to ensure that clients get the best possible service and advice.