Liquidation To Save a Business
Liquidation is a process that can be used to save a struggling business and return it to profitability. Most directors do not realise that liquidation does not need to be the end of your business. Liquidation is an option when a business cannot pay its debts as and when they fall due. This could be HMRC debt or general aged debt, that has caused such an impact to the cashflow of a business that liquidation is considered. In these circumstances the company can be placed into liquidation, while allowing the directors to begin trading through another company. The debs of the old company are left behind in liquidation, meaning the new company can trade debt free from day one. Contact Our Liquidation Experts To Find Out More.
“Liquidation is a way for a director to take back control of a struggling business. Not only can liquidation help by writing off the old debt the business can be traded through a new company with no debt.”
If it assists the directors of the company that has been placed into liquidation, they can purchase the assets of the company in liquidation from the liquidator. This means that whatever assets the liquidated company owns, at the date of liquidation, can be sold to connected parties of the company. This includes directors or shareholders previously involved in the company in liquidation. Assets of the liquidated company such as vehicles, plant and machinery, stock, and even monies due in to the company in liquidation can be sold. Contact Our Liquidation Experts Who Will Answer Your Questions. Find Out More About Your Liquidation Options.
One of the main queries our liquidation experts receive is how does a company in liquidation close down and then re-open with the same name the next day. This liquidation question is at the heart of the liquidation to save a business rescue option. As above the directors of a company in liquidation can continue to trade through a different company if they so wish. As above the directors of a company in liquidation can purchase the assets of the company in liquidation from the liquidator. Contact Our Liquidation Experts Now To Find Out More.
“Liquidation can involve the transfer of the company assets to the directors of the company that has entered liquidation. This can include the name book debts and assets of the company that has entered liquidation. We can show you how”
It follows that the directors of the company in liquidation can therefore purchase and use the name of the company in liquidation for their new company. There is a framework in the law to allow directors of the company in liquidation to do this. Contact Our Liquidation Experts To Find Out More.
As above liquidation can be used to save a business by allowing that business to trade through another company leaving the company in liquidation behind. Assets can even be transferred legally between the company in liquidation to the new company for the benefit of the business. Our liquidation experts can show you how and you can explore whether saving your business through liquidation is the right option for you. Contact Our liquidation Experts Now On The Liquidation Hotline Above Or The Liquidation Contact Form.