When companies face insolvent trading, we can provide the directors with safe harbour advice. The insolvent trading safe harbour applies where the directors start developing one or more courses of action that are reasonably likely to provide a better outcome for the company than an immediate liquidation or administration.
If the directors can establish a safe harbour, they may be protected from insolvent trading liability arising from debts incurred directly or indirectly in connection with any such course of action – it is important to get safe harbour advice as soon the directors suspect insolvency.