The UK's insolvency legislation allows, subject to certain steps being undertaken, the transfer of the current business and trading of your insolvent company into a new, completely debt-free phoenix company. The sale is normally agreed in advance, and subject to certain criteria and steps, you can retain the old business name and seamlessly continue with existing contracts and customers, with all liabilities of the troubled limited company written-off.
In most circumstances, the best and cheapest form of business rescue is to use the Liquidation procedure, as Liquidation does not mean the death of the core business, but simply the closure of the troubled limited company and the writing-off of all liabilities. Using the liquidation process as a sword rather than a shield, the business can be transferred to a new phoenix company, which can continue the trading activities, but which is completely debt-free.
We will guide you through the whole Liquidation process, from the outset until the company is ultimately dissolved, helping you through the potential pitfalls, yet ensuring that, should you wish, that your core business survives and continues with little or no impact, with the smooth, legal transition of the business from the insolvent company to a new, debt-free phoenix company.
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
In certain circumstances, Pre-Pack Administration may be appropriate, which allows for an agreement to be put in place for the sale of the business to a debt-free phoenix company prior to the formal insolvency process being instigated, with the sale subsequently being ratified by the duly appointed Administrator.
We can ensure that your company survives and seamlessly continues, with significant company liabilities written-off, and the balance repaid over a period of time. The company's debts are reduced and rescheduled into a monthly, manageable payment over a period of time, with a significant percentage of debt written-off.
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