Businesses in the Energy & Resources sector often require significant capital investment but with financial returns dependent on market movements and uncertainties of an exploration or development process.
This can leave businesses in the sector exposed to the risk of insolvency. This is a threat for stakeholders in the businesses but can offer an opportunity for parties interested in acquiring distressed assets.
If financial difficulties do arise, specific issues are posed by the multi-jurisdictional nature of many businesses in this sector, the heavy involvement of capital markets in the sector and industry norms.
To address these concerns for our clients Fladgate has structured a team of specialists from a range of backgrounds who can come together and offer a complete legal solution to the issues raised.
Some of the areas of legal advice covered are:
- Representing buyers of distressed energy and resource assets
- Advice on strategic options open to directors or stakeholder of distressed businesses
- Emergency public or private company fundraisings, asset disposals or corporate restructurings
- Acting for insolvency practitioners appointed as administrators or other insolvency office holders
- Planning transactions where insolvency risks are feared
- Asset recovery, fraud, breach of duty or other litigation proceedings