Many UK Medium are finding that their business is no longer financially viable in its current format taking into consideration these harsh trading times. Added to this are the pressures of customers abnormally taking longer to pay. Many of these companies are basically sound and seeking alternative routes to relieve the trading company of its crippling debts, debts and contractual obligations.
Many UK Medium are finding that their company is no longer financially viable in its current format taking into account these harsh trading times.
Added to this are the pressures of customers abnormally taking longer to pay. Many of these companies are principally sound and seeking alternative routes to relieve the trading company of its crippling debts, debts and contractual obligations.
A substantial number of directors that find themselves in this predicament, who have already continued to support the trading company with extra money, and in extreme cases, working with no reward, find themselves with no alternative but to consider the option of Pre Pack Administration, uaually known as Phoenixing.
help with Pre Pack administration ” is a process where a new limited company is Formed, often by the directors of the old business. The process further allows for an understanding to be set up established so that the new company is able to buy the assets of the old company.
The assets, which could include plant and machinery, tooling and computer equipment, client lists, telephone numbers, websites and of course goodwill. In somecases, the new company can trade with a variation on the old company
name.
The old company is then dealt with via an Insolvency Practitioner, who
corresponds with the creditors, both unsecure and debenture holders, where
the outcome is that the previous trading company is then struck off. The
creditors have no claim over the new company for any outstanding debt.
Undoubtedly, where the core business idea remains workable the advantage of setting up a new company is that this can be done using lessons learnt.
The positive elements from the previous trading company, and the staff,
can be retained and developed and the less productive elements discarded. The
fact that the legacy of debt from the previous company is left behind is of
significant benefit allowing the new company a much stronger chance of success.
To find out how this process can help your business contact Tony Costigan, who is one of the UK’s leading advisers in phoenix companies. Tony is a formerly trained auctioneer and valuer and has held senior positions at director level in corporate companies, and has to date completed some 86 pre-packs in the past 14 months.
Tony Costigan is a senior director of Express Tax Solutions which is a specialist tax company which aims to assist industries with tax problems overcome their tax problems in the most valuable and practicable method for the industry by resolving the tax liabilities that are affecting the business’s performance.
The tax advisors and in house legal team work directly with the establishment and the tax man to make an arrangement to pay the tax debt which is more realistic to the business to help them avoid being faced with the prospect of bankruptcy.
We have assisted businesses in a diverse range of sectors including accountants, solicitors, hotels, travel, property, construction, public houses, e-commerce, leisure, internet, automotives, printing, manufacturing, telecommunications and entertainment.
To save your business website design in Derby from becoming bankrupt contact the express tax solutions specialists on 0121 222 2422
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