What is a phoenix company?
A phoenix company is a business acquired from a formal insolvency process, often by existing directors. This process must adhere to strict guidelines to protect creditor interests.
Phoenixism can have a bad reputation, particularly where the new entity is under the same ownership and control as the previous entity. Nevertheless, it is a part of a dynamic framework to reinvigorate business assets.
The insolvency process for a phoenix company
There is a positive side to insolvency processes. They are an important mechanism for releasing assets stifled by a legacy of debt and inefficiency into a new entity free of such drags.
Use various insolvency processes to free up moribund assets.
