COMPANY LIQUIDATION & A PHOENIX COMPANY

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UK insolvency legislation allows, when certain steps are followed, the transfer of your insolvent company’s business and trading activities to a new, completely debt-free phoenix company. The sale is usually agreed in advance, and - subject to compliance with legal criteria - you can retain the existing business name, continue servicing existing contracts and customers, and write off all liabilities of the troubled company.

In most cases, Liquidation is the most effective and cost-efficient way to rescue a business. Liquidation does not mean the end of the core business; it simply involves closing the troubled company and writing off its liabilities. By using liquidation strategically, the business can be transferred to a phoenix company, which continues trading without the burden of historical debt. This approach allows your business to operate as normal while achieving a clean financial start.

We provide comprehensive support throughout the entire liquidation process, from the initial assessment to the final dissolution of the company. Our team will guide you through potential pitfalls and ensure a smooth, legal transition of your business to a debt-free phoenix company. With our assistance, your core business can survive and continue trading, with minimal disruption, allowing you to focus on growth and future success rather than past liabilities.

All liabilities are written-off

The assets of your business, including the sales ledger, can be transferred to the phoenix company

You can 'cherry-pick' whatever assets, contracts, leases etc. you want to retain, and leave behind any non-productive assets and contracts

All legal action is stopped, and the business continues to trade solely under the control of the phoenix company

You will acquire the assets at a large discount, as you will only pay a relatively small percentage of the true market value, as your assets aren’t worth much to third parties, so getting some value (albeit a 'fair and reasonable' one in the circumstances) from you is in most cases the best deal that can be obtained. The transfer can also include the book debts (sales ledger) of the old business

Prevent and avoid wrongful trading accusations

Your business' brand and goodwill (including any client list and intellectual property) is protected (preserving years of establishing your brand, which is a major asset)

You can choose to simply close the company and walk away without any personal liability

Directors may also be able to claim £'000's in unpaid wages and redundancy from the Redundancy Payments Office