The UK's insolvency legislations allows, subject to certain steps being undertaken, to transfer your the current business of your insolvent company into a new, completely debt-free phoenix company. The sale is fully agreed in advance, and subject to certain criteria and steps being taken, you can retain the old business name and seamlessly continue with existing contracts and customers, with all debts of the troubled limited company written-off.
In certain circumstances, the best form of business rescue is to use the Pre-Pack Administration procedure, as Pre-Pack Administration does not mean the death of the core business, but merely the end of the troubled limited company. Using the Pre-Pack Administration process as a sword rather than a shield, the business can be restructured and seamlessly transferred to a new phoenix company, which can continue the trading activities, but which is completely debt-free, whilst being afforded protection from the actions of creditors seeking enforcement.
We will guide you through the whole Pre-Pack Administration process, from the outset until the company is ultimately dissolved, helping you through the potential pitfalls, yet ensuring that your core business survives with little or no impact. We will assist in the restructuring of the business, streamlining the core business prior to, and part of, the Pre-Pack Administration process, ensuring that the ongoing phoenix business is in a significantly better financial position moving forward post-Administration.
We can assist with the smooth, legal transition of the business and assets from the insolvent company to a new, completely debt-free phoenix company.
Buy-back of the business (assets, contracts etc.) is agreed in advance
You purchase only the assets of your company that you want. You can 'cherry-pick' what assets, contracts etc. you want, and leave behind any non-productive assets and contracts. You will only pay a relatively small percentage of the inherent value of the business to you, as your company's assets aren’t worth much to third parties, so getting some value (albeit a 'fair and reasonable' one in the circumstances) from your new phoenix company is in most cases the best deal that can be obtained.
New, debt-free, company can trade under the same (or a variation of the original name)
All legal action is stopped, and the business continues to trade solely under the control of the phoenix company
Seamless transfer of business ensures that minimal disruption occurs
Customers are not necessarily contacted (they may well be unaware of the procedure)
Transfer of the business includes goodwill, customer list, IP etc.
The transfer of ownership can include the book debts (sales ledger) of the old business
All company liabilities are fully written-off. The business will continue to trade, with the assets remaining in-situ, but without the burden of any historical debt, which is all written off.
The phoenix company will seamlessly carry forward the trading of the business, albeit free of any liabilities.
For a free, strictly confidential chat, complete the contact form, call us, or click below for an instant WhatsApp chat.
34-35 Hatton Garden, London EC1N 8DX
0330 321 3300 info@company-rescue.co London 020 7175 7977 Birmingham 0121 330 0148 Manchester 0161 262 1930 Leeds 0113 365 1141 Cardiff 02920 140288 Reading 0118 307 0825 Norwich 01603 908501 Maidstone 01622 360822
Copyright © Company Rescue & Recovery
All Rights Reserved.