A phoenix company is a new company that, like the mythological bird, rises out of the ashes of a failed company and takes on the failed company business. The phoenix company will be typically trading out of the same premises, using the same equipment, same website, same phone numbers, same email addresses and all the customers.
The process of a phoenix company will require the assets of the old limited company to be transferred to another legal entity or limited liability Company. The correct term for this process in the UK is known as a pre-pack administration. The formation of a phoenix company is strictly regulated by the insolvency act 1986 and the enterprise act 2002, along with very recent guidelines detailed in the statement of insolvency practise.
One of the more important details of performing a phoenix or pre-pack administration is having adequate business finance or working capital in the new limited Company. In fact this is is indeed the hardest aspect and moreover can be the deciding factor in whether the new limited performs.
Enable Finance Fund Phoenix Companies
Enable Business Finance have a broad range of finance products and solutions for Companies considering a pre-pack administration. IMPORTANT NOTE: Before you perform a phoenix or pre-pack admin make sure you speak with one of advisors first because we can be far more effective for your business if we are engaged at the planning stages.