Rescue and Recovery
Our corporate finance know-how can provide assistance
for all types of turn-around.
Generally, the most qualified agents to take control of an under-performing
company are those already in situ. A motivated manager who can
see the potential which exists within the company and knows how
to exploit this potential could reap the rewards of their efforts
with the assistance of Positive Commercial Finance.
Phoenix’s
A business which arises from the failure of an almost identical
previous business is known as a Phoenix. Usually run by the same
management team and often having a similar corporate identity,
a Phoenix allows the business to start again, normally protecting
the interests of staff and suppliers. The “new” management
benefits from being able to draw on the experiences of the previous
failure, providing a strong foundation on which to progress the
new business. There are, of course, restrictions and guidelines
to ensure a Phoenix is set up and operated correctly. The Enterprise
Act 2002 aims to encourage such entrepreneurship whilst discouraging
those who seek to benefit illegitimately from such arrangements.
Pre-packs
Pre-packs, or the pre-packaged sale of a business' assets to a Phoenix company, are generally arranged by the existing management before
the appointment of an Administrator/ Liquidator. The finance to
fund the deal is also arranged
in advance so that the Phoenix company can act quickly, having
secured a deal with the Administrator/ Liquidator.
Advice will also need to be taken from an Insolvency Practitioner
or Administrator to ensure any arrangements cannot be overturned. It is
essential that such independent advice is taken in these scenarios.
Timing is very important with all rescue and recovery arrangements.
Inevitably there will be uncertainty and nervousness on the part of staff
and suppliers prior to the closure of the old company. It is also important
to establish valuations on existing assets and goodwill to ensure that the
deal works commercially.
Contact us now!
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