Be careful with investments to avoid need for insolvency advice

Be careful with investments to avoid need for insolvency advice

Every investment comes with an element of risk and being able to judge whether the potential reward is worthwhile is part of being a good businessman.

However, even successful investors can come unstuck with bad advice and just a few poor decisions can see them having to call in insolvency practitioners.

Businesses who find themselves under financial pressure from investments which have gone wrong might be smart to seek insolvency advice sooner rather than later in order to help retain an element of control over their fate and maximise their rescue chances.

The story of former Quinn Glass owner Sean Quinn, who built the company from the ground up, shows just how easy it is to lose everything.

Mr Quinn recently declared himself bankrupt, despite at one point being the richest man in Ireland.

The 64-year-old had reportedly built up debts of €2.8 billion (£2.4 billion), which he put down to "ill-fated" investments in Anglo Irish Bank.

He had purchased shares in the lender on the advice that it was considered a blue chip firm, but the subsequent collapse saw the value of these stocks decimated, according to Packaging News.

The entrepreneur lost control of his business to Anglo in April this year, but the fact that he went into bankruptcy in Northern Ireland rather than the Republic of Ireland means that he will be able to open another firm in a year's time, rather than the 12 years required in the south.

"I have done absolutely everything in my power to avoid taking this drastic decision. The vast majority of debt that Anglo maintains is owed is strenuously disputed," Mr Quinn was reported as saying.

"However, I cannot now pay those loans which are due, following Anglo taking control of the Quinn Group of companies, which I and a loyal team spent a lifetime building. I find myself left with no other alternative."

Quinn Glass specialises in glazed containers, which are often used to hold drinks and are built to the highest standards.

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