At Sundgaard, we have extensive experience with all aspects of insolvency, bankruptcy and financial distress. We are qualified to help you or your business manage any financial challenges.
As the former management, you may be at risk of being met by claims from the trustee based management liability. Liability can occur in various scenarios, however some om the more common examples are avoidable business transfers and continued operations passed the point of no return. Generally speaking, management will risk liability, if they do not adjust or halt operations, when it is clear that the business is distressed and in risk of insolvency proceedings.
This is referred to as the point of no return.
Litigation regarding management liability is complicated. A fairly limited amount of liability cases are brought before the courts every year, while only fairly few attorneys have experience with such cases. At Sundgaard we litigate these cases regularly.
We have litigated smaller as well as larger more complex liability cases, and we have represented both bankruptcy estates and management.
The same principles apply to advisor liability cases, which we also have experience with.
All liability litigation will often involve an extensive amount of documentation and the burden of proof is heavy. In the case of personal liability it is also worth exploring potential insurance coverage, which we can also assist in.