Bankruptcy trustees need to understand the financial conduct of the bankrupt company before the bankruptcy. Our Due Diligence specialists can help you analyse the financial or tax practices and unravel the mishmash of financial information. For example, we help trustees by examining the structure and composition of current account claims on the director/major shareholder or associated persons or legal entities.
We can also investigate whether or not sales to associated persons and legal entities were priced fairly. The trustee might need to investigate the possibility of directors’ and officers’ liability, for example, or might have suspicions of fraudulent acts. In these cases we can determine when the bankruptcy became likely and if and when the company should have applied for bankruptcy to prevent its debts from mounting. A Due Diligence review may also serve to substantiate a claim for directors’ and officers’ liability or the bankruptcy trustee’s suspicions of fraudulent acts.
Our Due Diligence specialists also possess the necessary expertise to investigate whether the company performed any unusual transactions with the bankruptcy looming – or earlier, even – for which no immediate reason is apparent assuming that the director had carried out his or her duties meticulously and carefully.
We can also use our financial expertise to establish we whether the company’s balance sheet underwent any inconsistent or unusual movements, such changing the valuation principles, and how those movements affected the outcome.
