Phoenix Business Services

Component distributor keeps trading via Phoenix business
A large auto component distributor had run into financial difficulties, due primarily to a number of legal dispute with major suppliers. The business was viable, but the trading company was hopelessly insolvent. Using the Pre-Pack Administration procedure, the business was seamlessly transferred to a new Phoenix company. The Phoenix company acquired the assets, at a fraction of the cost, and moved forward, free of debt. Debts of over £2 million were written off with the demise of the old company.

Hi-tech component manufacturer saves business with 'Pre-Pack Administration'
A hi-tech component manufacturer had secured new, lucrative contracts, but was burdened with significant historic debt. The directors accepted that the existing company could not continue to trade, but feared that insolvency proceedings would result in the loss of the contracts. Via a Pre-Pack Administration, the directors purchased the assets back, at a fraction of their true value to the business, and continued the business without any cessation of trading. By retaining the customers, and writing-off over £1 million of creditors, the new Phoenix is profitable. As well as saving the business, the directors' personal guarantees were not called upon.