Best Restructuring & Insolvency Lawyers in Karachi

Share your needs with us, get contacted by law firms.

Free. Takes 2 min.

Asma Lawyers In Pakistan
Karachi, Pakistan

Founded in 2003
9 people in their team
English
Urdu
Lawsuits & Disputes Restructuring & Insolvency Class Action +6 more
Legal Services OfferedFamily & Personal LawFamily Matters: Court marriage, divorce (including Christian, Shia, Sunni divorces), custody of children, khula, dower, dowry, maintenance, protection for women against harassment and domestic violence, and forced marriage.Legal Certificates:...
Lexway Law Firm

Lexway Law Firm

15 minutes Free Consultation
Karachi, Pakistan

Founded in 1992
50 people in their team
Urdu
English
Welcome to LexwayEstablished in 1992, Lexway is one of Pakistan’s leading litigation and premier corporate law firm with an illustrious history spanning over two decades.From our office in Karachi, the capital of Pakistan’s economic and commercial activity, Lexway has been serving clients in a...
RIAA Barker Gillette
Karachi, Pakistan

Founded in 1981
500 people in their team
Urdu
English
At RIAA Barker Gillette Pakistan, we believe every client is unique and tailor our services to meet your needs. Simply stated, our objective is to look after your best interests in the most efficient manner. While working with you, we shoulder the burden, taking a step back to take stock of the...

Founded in 2003
10 people in their team
Urdu
English
The Firmwe are a business and commercial law firm with a proud reputation of delivering customized business friendly legal and management solutions in facing challenging deadlines. Our professionals cover a broad-spectrum legal, business and policy consulting assignments in the areas of business...
Surridge and Beecheno
Karachi, Pakistan

Founded in 1948
200 people in their team
Urdu
English
Correspondent lawyers all acrossPakistan to conduct mattersThe Firm, with its principal office in Karachi, now has four partners and twenty-seven associates and has branch office in Lahore. The Firm also has correspondent lawyers all across Pakistan to conduct matters on the instructions of...
A. Nawaz Osmani Law Associates
Karachi, Pakistan

Founded in 2000
10 people in their team
English
Urdu
Osmani Law Associates is a registered Best Legal Services providers and leading Law Firms, Lawyers Karachi Pakistan, having its Head Office at Karachi, Legal facilities across Pakistan with supported Global presence. The founder has long family history of legal profession for the last three...
Abraham & Sarwana
Karachi, Pakistan

Founded in 2000
50 people in their team
Urdu
English
About UsAbraham & Sarwana has been meeting challenges and satisfying the most demanding of expectations for the past 50 years, with demonstrably advantageous results for our distinguished portfolio of international clients and associates.  It is no wonder that we have managed to carve out...
ZAFAR & ASSOCIATES - LLP
Karachi, Pakistan

Founded in 1975
500 people in their team
Urdu
English
ZAFAR & ASSOCIATES - LLP, founded in 1975, is one of the distinctive global law firm providing legal services to worldwide clients in broad array of areas enlisted in the succeeding pages.We’re the network of full service law firms in Pakistan, having distinguishable stance and stature of law...
MAH&CO.
Karachi, Pakistan

Founded in 2010
15 people in their team
English
Urdu
Sindhi
Panjabi
MAH&CO. is a full service law firm based in Karachi, Pakistan, offering expert legal advice and representation across multiple areas of law. Whether you need help with corporate matters, property disputes, criminal defense, taxation, or family law, our team of experienced lawyers, Advocates,...
Fazleghani Advocates
Karachi, Pakistan

Founded in 1953
50 people in their team
Urdu
English
ABOUT USFazle Ghani Khan established Fazleghani Advocates in 1953 in Lahore and served as a Judge of the High Court of West Pakistan from 1965 till 1971. The firm was reestablished by him in 1971 in Karachi.Senior Partner, Makhdoom Ali Khan joined Fazleghani Advocates in 1980, and was...
AS SEEN ON

About Restructuring & Insolvency Law in Karachi, Pakistan

Restructuring and insolvency law in Karachi, Pakistan, is a specialized area aimed at helping financially distressed companies or individuals reorganize their affairs, settle debts, or liquidate assets in a legally structured manner. The main purpose is to provide relief to debtors while ensuring creditors' interests are addressed as per the law. Karachi, being the largest commercial hub of Pakistan, hosts a wide range of companies and businesses, making restructuring and insolvency issues relatively common. The legal framework ensures an orderly process whether a business aims to revive, exit the market, or resolve its debt obligations.

Why You May Need a Lawyer

Seeking guidance from a qualified restructuring and insolvency lawyer in Karachi can be critical due to the technicalities involved. Here are some common situations where legal help is necessary:

  • Your business is facing severe financial difficulties and creditors are demanding payment.
  • You are considering liquidation or voluntary winding up of your business.
  • You wish to restructure company debts and negotiate new terms with creditors.
  • A creditor has initiated insolvency proceedings against your company.
  • Personal bankruptcy is being contemplated due to overwhelming debts.
  • You want to protect your rights as a creditor during another party's insolvency process.
  • Your business requires strategic advice on compliance with local insolvency regulations.

Lawyers can help by interpreting complex statutes, representing you in court or negotiations, and ensuring your interests are efficiently safeguarded throughout the process.

Local Laws Overview

The main laws governing restructuring and insolvency in Karachi, and throughout Pakistan, are:

  • The Companies Act, 2017: Outlines the processes for winding up companies, either by court order or voluntarily by members or creditors.
  • Corporate Restructuring Companies Act, 2016: Provides the framework for specialized entities to assist in restructuring non-performing loans and assets.
  • The Banking Companies Ordinance, 1962: Addresses insolvency issues specifically for banking organizations.
  • Bankruptcy Act, 1920: Primarily covers personal insolvency and bankruptcy proceedings in Pakistan.
  • Relevant rules from the Securities and Exchange Commission of Pakistan (SECP): SECP regulates and oversees corporate restructuring and insolvency proceedings.

Karachi-based courts, especially the Companies` Bench of the Sindh High Court, are typically involved in restructuring and insolvency cases. Key aspects include:

  • Procedures for appointment of liquidators and official receivers
  • Protection and treatment of creditors' claims
  • Priority payments and ranking of creditors
  • Corporate rescue and schemes of arrangement
  • Reporting requirements to SECP and relevant authorities

Frequently Asked Questions

What is corporate restructuring in the context of Karachi, Pakistan?

Corporate restructuring refers to the legal and financial process businesses undertake to reorganize their operations, structure, or debts, particularly when facing financial stress, to become more viable or solvent.

What is the difference between insolvency and bankruptcy in Pakistan?

Insolvency is the financial state where a person or company cannot pay debts as they come due. Bankruptcy is the legal process that may follow insolvency, where a business or individual is declared unable to meet debt obligations and enters court-mandated proceedings.

How can a business initiate voluntary winding up in Karachi?

A business can pass a special resolution for voluntary winding up, appoint a liquidator, and follow procedures outlined in the Companies Act, 2017. Notice must be filed with relevant authorities, and a liquidator's report is required before dissolution.

What are the roles of the SECP and Sindh High Court in restructuring and insolvency matters?

SECP regulates corporate restructuring and oversees companies' compliance with statutory requirements. The Sindh High Court’s Companies` Bench handles court-supervised winding up, disputes, and enforcement of insolvency laws for cases arising in Karachi.

Can creditors force a company into insolvency in Pakistan?

Yes, if a company defaults on its debt, creditors may petition the court to initiate insolvency or winding-up proceedings. The court will consider whether the company is unable to pay its debts before making an order.

Are there any alternatives to liquidation for struggling businesses?

Yes, alternatives include arranging settlements with creditors, restructuring debts through formal agreements or schemes of arrangement, and seeking rescue options provided under the Companies Act and Corporate Restructuring Companies Act.

What happens to employees during insolvency proceedings?

Employees' claims, including unpaid wages and benefits, are given a preferential status under the law, meaning they are typically paid before most unsecured creditors during the distribution of assets.

How does restructuring benefit creditors?

Restructuring aims to maximize recoveries for creditors by preserving the business’s value, enabling partial repayments, or creating a plan that is more favorable than immediate liquidation.

Is insolvency information public in Pakistan?

Certain information such as public notices regarding liquidation appointments and winding-up orders is accessible to the public, as these are often published in official gazettes or newspapers according to legal requirements.

How long does the insolvency or winding-up process take in Karachi?

The duration varies based on case complexity, value and number of creditors, asset structure, and potential court proceedings. Simple voluntary windings-up may conclude in six to twelve months, while contentious cases can take several years.

Additional Resources

For more information, assistance, or formal proceedings, the following bodies and organizations can be helpful:

  • Securities and Exchange Commission of Pakistan (SECP): Regulates companies and supervises restructuring and insolvency proceedings.
  • Sindh High Court, Companies` Bench: Handles litigation, court-supervised winding up, and insolvency matters in Karachi.
  • Karachi Chamber of Commerce and Industry (KCCI): Offers guidance and support to businesses facing distress.
  • Pakistan Banks' Association (PBA): Can assist with banking-related restructuring and negotiations.
  • Licensed insolvency practitioners and law firms: Provide professional advice and representation for all stakeholders.

Next Steps

If you or your business are facing insolvency or considering restructuring in Karachi, follow these steps:

  1. Collect and organize all relevant financial documents and records.
  2. Consult with a qualified restructuring and insolvency lawyer to assess your position and understand your rights.
  3. Evaluate your options, such as informal restructuring, formal schemes of arrangement, or voluntary liquidation.
  4. If appropriate, move forward with legal proceedings under the advice of your lawyer and comply with all statutory requirements.
  5. Communicate openly with stakeholders, such as creditors, employees, and shareholders, as required by law.
  6. Use resources from governmental or professional bodies for guidance and compliance.

Early legal advice can significantly increase the likelihood of a beneficial outcome, whether that means restructuring and survival or an orderly exit from the market.

Lawzana helps you find the best lawyers and law firms in Karachi through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Restructuring & Insolvency, experience, and client feedback. Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters. Get a quote from top-rated law firms in Karachi, Pakistan - quickly, securely, and without unnecessary hassle.

Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.