Pre Pack Administration for Companies
Pre-packaged administration is a widely-used service within the Insolvency arena whereby a business is considered viable and is therefore put into administration and sold to the same Director. It allows the business to continue trading under a new company with the same staff, same clients and the same service.
Our specialist debt management advisors will determine whether a pre-pack is the right solution for your business. We will work closely with you and your accountant to establish the true financial circumstances and outlook for the business moving forward.
The process for pre-pack administration is achieved through pre-arranged appointment with one of the experienced insolvency practitioners on our panel that we recommend to be best suited to your business.
It will allow a new phoenix company to purchase the assets back pre-appointment in preference to other creditors (except for debenture holders). For clients who do not have access to immediate capital we are often able to arrange for funding for the company’s assets to be brought back!
Express Tax Solutions provide an independent national advisory service to the Directors of Limited Companies. This service is focused on SME (annual turnover £ 50k – £ 25 million) company recovery. Our pre-insolvency advice ensures compliance with constantly changing Society of Insolvency Practitioners (SIP) conditions and minimises your exposure to risk.
We work closely with you, your accountant and the IP to maintain confidentiality as required to ensure that the right solution can be achieved to give your business the lifeline it needs.
Benefits of a Phoenix Company
A phoenix company is when the legal assets of a failed company are moved to a new legal entity i.e. a new limited company. Using our expertise, it may be possible for the directors to remain the same and for the new business to have an identical or similar trading name to the previous failed business.
The purpose of a phoenix is to allow for the recovery of a company which has a viable and often very profitable core but is currently powerless to repay its outstanding debts. It is a pragmatic arrangement that protects the interests of employees and private enterprise.
- Preservation of employment for the company’s Directors & other employees (in 92% of cases, a pre-pack will result in all the old company’s jobs being preserved);
- Achieves a write-off of debt arrears, (excluding debts which are subject to a personal guarantees or debentures);
- Discharges the company from contracts or leases which are no longer required;
- Evades interference to customers (companies often continue to trade in an identical fashion to the previous company) & other stakeholders.
Advantages of a pre-pack
For many companies’ pre-pack administration, can provide a planned, quick & secure transition to a new phoenix company.
- The sale of the business assets & undertaking is agreed in advance;
- The personal credit history of the old company’s directors is fully protected;
- The company can trade under an identical or similar name as the original company name;
- Minimum disruption is incurred (using our expertise and confidentiality it is often that a large proportion if not all of staff and customers are unaware of the change);
- There is not a requirement for local advertising or filing in the local.
We are here to help you through the entire process. With our help, you can be sure that the entire process runs smoothly and that you are involved in every step and decision which is taken.
For more information call us now on 0121 232 4622 for a free no obligation consultation. We’re on your side!
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