What to keep in mind
Document cash flows, payment priorities, creditor positions, financing options and available restructuring or insolvency procedures.
Continuing to assume obligations without understanding the company's condition may increase exposure.
Distinctions often confused
Temporary cash shortage is not automatically the same as statutory insolvency.
Frequently asked questions
Should directors document financial decisions during a crisis?
Yes, including the information available and reasons for their actions.
Must every distressed company immediately file for insolvency?
Not necessarily; the applicable legal circumstances and options must be assessed.
Informational content. It is not a substitute for professional advice.