Insolvency’s lighter side

By Basia Pioro, basia@cfp.ky

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In the world of business, it’s the winners who matter.

But for every successful company out there, there’s one that was not so lucky and that’s where the insolvency pros come in.

No matter if a company fails through legitimate or more nefarious means, it’s the job of the insolvency experts to dissolve the organization and tidy up loose ends.

“Basically, our job is to get the investors’ money back, and that can prove to be a rather exciting undertaking especially if the company executives don’t want to part with it,” said Tate Russack, director at ACG Limited.

The Annapolis, Maryland–based firm, which specializes in the resolution of international insolvency matters, hosted an informal reception and discussion 22 March that brought experts together to discuss recent cases and a look to the future.

“We thought that our picks for Top 20 Mistakes of Insolvency would provide an entertaining look at some of the bloopers we see in this business. Funny as they are, they highlight some serious financial vulnerabilities that professionals in our industry should be aware of,” said fellow ACG Director Sean Logan.

Insolvency experts come from a range of backgrounds including accounting, law, finance, international affairs, and industry–specific operations, which allows them to address the range of issues companies must deal with when winding down operations.

Attendees at the Marriott Beach resort had the chance to engage in insightful discussions exploring the latest trends and issues influencing the banking, private equity, and insolvency industries, including Chapter 15 actions and the lessons learned from recent hedge fund crashes.

“Our advice is, if you ever, for example, think that buying a private jet with all the company money, or crossing the Lichtenstein border with a trunk full of cash in a brand new Mercedes while on Interpol’s most wanted list is a good way to wind up your business, think again,” said Mr. Russack.

“Believe it or not, these are actual things that have happened to our clients’ money. But with a plan in place that takes into account that businesses do fail all the time, things can work out for the company’s legitimate investors if you have insolvency experts on the case.”