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  • Solvency confirmations and transactions at undervalue: key considerations for companies and lenders in respect of connected party transactions

Solvency confirmations and transactions at undervalue: key considerations for companies and lenders in respect of connected party transactions

Matthew Padian, Lucy Trott and Millie Wakefield of Stevens & Bolton share that UK connected-party asset transfers face heightened challenge risk as transactions at undervalue, making robust contemporaneous evidence of cash-flow and balance-sheet solvency, fair value and a clear company-specific commercial benefit essential for directors and lenders seeking to defend later insolvency claims.