Audit and insolvency analysis: legal assistance for business
In today’s business environment, even the most successful companies may encounter financial instability. Timely identification of issues, professional audit, and the development of a crisis-exit strategy are key to preserving assets, maintaining reputation, and achieving future growth.
PRAGNUM Law Firm specializes in legal support for procedures related to corporate insolvency. We provide comprehensive legal assistance to both companies in difficult financial conditions and to creditors seeking to minimize the risks of asset loss.
Our experts will assist in conducting an insolvency audit and determining the optimal strategy for overcoming a financial crisis.
We operate in accordance with the applicable legislation of Ukraine and apply an individualized approach to each case.
Order an Insolvency Audit in Kyiv from a Team of Experienced Attorneys
Insolvency Audit
Insolvency is not necessarily a death sentence for a business. In many cases, it is a signal for urgent changes that may not only preserve the company but also transform it into a more resilient and profitable structure.
Methods of Financial Condition Analysis
Our legal and financial analysts perform a comprehensive audit of the company, including:
- analysis of the balance sheet, income statements, accounts receivable and payable;
- identification of problematic assets and liabilities;
- evaluation of current and projected solvency;
- assessment of the fulfilment of obligations to the state, partners, and employees.
Such an audit allows for an accurate assessment of risk levels, determination of solvency recovery prospects, or substantiation of the need for liquidation.
Indicators of Insolvency and Potential Consequences
Ukrainian law clearly defines the indicators of insolvency:
- the company’s total debts exceed the value of its assets;
- continuous inability to fulfil payment obligations to creditors or employees.
Ignoring these indicators may lead to serious consequences: lawsuits, asset seizures, forced liquidation, and loss of company control. That is why it is essential to conduct an audit at an early stage.
Legal Mechanisms for Business Stabilization
Depending on the audit results, we propose optimal solutions:
- debt restructuring and settlement agreements with creditors;
- changes in management or ownership structure;
- asset and expense optimization;
- legal preparation for voluntary bankruptcy filing to protect assets.
Liquidation Procedure in Kyiv – Order Legal Services Online
Liquidation Procedure
In some cases, restoring solvency is impossible, and liquidation becomes the most reasonable decision. In such a scenario, it is crucial to comply with all legal requirements, preserve the owner’s reputation, and avoid personal liability.
Stages of Company Liquidation
Legal support for the liquidation procedure includes the following stages:
- Adoption of the decision on liquidation and formation of the liquidation commission.
- Notification of creditors and state authorities.
- Conducting inventory, audits, and preparing the liquidation balance sheet.
- Satisfaction of creditors’ claims.
- Deregistration of the company in the Unified State Register.
Our attorneys supervise each stage, eliminating legal risks and ensuring lawful execution.
Obligations of the Debtor and Rights of Creditors
In liquidation procedures, it is essential to maintain a balance of interests. We help debtors fulfil their obligations properly and assist creditors in effectively exercising their rights to recover funds.
Our specialists represent the interests of both debtors and creditors within bankruptcy procedures, including in court proceedings.
Legal Support of the Liquidation Process
Proper legal support determines whether the company director can avoid property or criminal liability, and whether all tax and financial obligations will be handled correctly. We guarantee transparency, security, and legality of all actions in the liquidation process.
Experts in this industry
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Determination of Insolvency with the Help of a Professional Attorney
Legal Support During Insolvency Analysis
Document Review and Risk Assessment
We start cooperation by thoroughly analysing all provided documentation — accounting, financial, and tax records. This allows us to uncover hidden risks, calculate potential consequences of decisions, and avoid critical errors.
Development of Crisis Exit Strategy
Based on the audit results, we create a personalized strategy that may include:
- optimization of the management structure;
- restructuring of debt obligations;
- restoring solvency through internal or external resources;
- support in negotiations with creditors or banks.
Representation in Negotiations and Courts
Our attorneys possess deep expertise in negotiations and court cases related to bankruptcy or liquidation.
They also provide full protection of creditors’ rights and interests. We ensure legal protection at every stage — from document preparation to challenging decisions in court.
Comprehensive Legal Assistance During Liquidation
Frequently Asked Questions (FAQ)
1. How can one determine if a company is insolvent?
Insolvency is defined as the inability of a legal entity to meet its financial obligations to creditors in due time.
Key indicators of insolvency include:
- systematic delays in payment to suppliers, banks, or employees;
- overdue accounts payable exceeding 3 months;
- liabilities exceed the value of assets;
- default on loan repayment schedules or other contractual obligations;
- court rulings on debt recovery not executed due to lack of assets.
Accurate financial status can be established through an in-depth legal and financial audit, which includes analysis of accounting statements, cash flow, contractual obligations, and assets. PRAGNUM specialists can conduct a comprehensive assessment and offer a legal crisis-resolution strategy.
2. What are the options for overcoming financial crisis?
The scenarios for overcoming a financial crisis depend on the severity of the issues, debt structure, and the company’s legal status. Possible solutions include:
- Financial debt restructuring. Reviewing loan terms, deferral or partial forgiveness with creditor consent, attracting investors, selling or merging assets.
- Voluntary obligation settlement. Negotiations with creditors to conclude settlement agreements and establish a new repayment schedule. PRAGNUM attorneys represent clients in such negotiations.
- Rehabilitation (restoring solvency). A legally defined procedure that can be initiated before bankruptcy proceedings. It helps preserve the business and avoid liquidation.
- Judicial bankruptcy proceedings. If no alternatives are viable, the court declares the company bankrupt and liquidation begins. Even in this case, assets can be protected, losses minimized, and business activities closed properly.
PRAGNUM provides full legal support at every stage: from analysis to court representation and execution of judicial decisions.
3. How does the liquidation of a company take place?
Liquidation is the termination of a legal entity without succession. In Ukraine, there are two main liquidation paths:
Voluntary liquidation (by decision of owners):
- convening of a general meeting and passing a resolution on liquidation;
- appointment of a liquidation commission;
- inventory of assets and liabilities;
- settlement of debts to creditors, employees, and the budget;
- submission of final documents to the registration authority for removal from the Unified State Register.
Compulsory liquidation through bankruptcy:
- filing of a petition with the Commercial Court (by debtor or creditor);
- initiation of asset management and subsequent liquidation procedure;
- sale of assets and proportional satisfaction of creditors’ claims;
- removal of the company from the state register upon completion.
PRAGNUM attorneys offer full legal support for liquidation, including:
- preparation of legal documents;
- representation before tax and state authorities;
- protection of property rights during settlements with creditors;
- organization of a transparent and secure closure of the business.
Analysis of the Company’s Financial Status by a Specialized Legal Team
Why Choose PRAGNUM?
- Proven experience in company audit and liquidation;
- Holistic approach to resolving financial and legal issues;
- Tailored solutions for every client;
- A professional team with deep knowledge of Ukrainian legislation;
- Comprehensive legal, financial, and strategic analysis;
- Total confidentiality and personalized service.
Request a Legal Consultation Today
If your business is facing a financial crisis — don’t wait until the situation becomes irreversible. A professional audit and legal support may help preserve assets, avoid losses, and set a new course for development.
Call us or fill out the contact form — PRAGNUM’s experts will get in touch and propose the optimal solution.