Insolvency is still widely read as a synonym for failure. Increasingly, it is the opposite: a structured route to renewal, and one of the more effective tools available for rescuing businesses that have run into difficulty.
Insolvency practitioners (“IPs”) sit at the centre of that work. Acting in various capacities — as liquidators winding a company down, appointments of receivers/managers in companies via a secured lender, or examiners steering a court-supervised rescue; a common objective is shared across: protect asset/enterprise value & save jobs (if company is an active employer). The evolving role of the IPs can be understood through three pillars outlined below.
- Value preservation
At the heart of every engagement is the goal of preserving and maximising value. IPs increasingly focus on keeping viable businesses trading — protecting jobs, preserving enterprise value (the worth of the business as a going concern) and maximising returns for creditors and other stakeholders.
In practice this may mean restructuring debt, facilitating a sale of the business/company’s asset, whether as a whole or by carving out and selling a viable part, negotiating with stakeholders, securing new investment or designing a turnaround plan.
- Strategic problem-solving
Where the first pillar is about what IPs achieve, this one is about how. Each distressed situation has its own ‘merits’; each brings its own commercial, legal and operational complexities, and the critical decisions must often be made at speed, on incomplete information, while balancing the competing interests of creditors, employees, directors and shareholders.
This is where strategy matters most. Today’s IPs pair technical expertise with commercial judgement — reading a situation quickly, weighing the trade-offs, and choosing not only the right option but the right sequence and timing to pursue it. The work now demands negotiation, business analysis and stakeholder management in juxtaposition with the application of the relevant legislation.
- Independence and trust
Independence is fundamental to the role. Whether reporting to the Court, engaging with creditors, managing distressed assets or overseeing a restructuring, IPs are expected to act objectively, transparently and in line with their statutory and ethical duties.
Conclusion
The IP’s role has moved well beyond the old image of shutting businesses down and realising assets. Far from marking the end, insolvency is often a catalyst for renewal — helping viable businesses overcome distress, preserving jobs, protecting economic value and supporting continuity wherever possible.
At Baker Tilly Cyprus, our restructuring and insolvency team provides practical, commercially focused solutions tailored to each engagement. Whether supporting businesses in difficulty, creditors seeking recovery or stakeholders navigating complex restructurings, our professionals are committed to independent, effective advice.
