1. Preventing a winding-up application (most common type)
2. Fighting a voidable transaction claim that the Liquidator says occurred when the company was insolvent (very common)
3. Trying to stave off bank recovery or foreclosure action
4. Proving to the board of directors that a Voluntary Administration or #safeharbour proposal is the only option
5. Establishing that you have insufficient funds to pay a judgement debt, if the plaintiff actually pursued their claim against you
6. Considering whether the other experts report has any material holes or errors
7. Negotiating a payment arrangement with a key supplier, utility provider or government body
As can be seen, a solvency report can take many different forms and doesn’t necessarily mean spending large amounts of money or preparing an expert report for court.
They are highly effective in defending you against insolvency claims or mitigating the risk of same.
For example, last year in the Federal Court, the court found in favour of the defendant’s solvency report (rather than the plaintiff’s), saving the defendants $millions in unfair preference repayments.