{"id":1397,"date":"2017-08-29T21:47:28","date_gmt":"2017-08-29T21:47:28","guid":{"rendered":"http:\/\/justycja.co.uk\/legal\/?p=1397"},"modified":"2017-08-29T21:47:28","modified_gmt":"2017-08-29T21:47:28","slug":"what-happens-when-a-business-is-sold-out-of-administration-or-insolvency-2","status":"publish","type":"post","link":"http:\/\/www.justycja.co.uk\/legal\/what-happens-when-a-business-is-sold-out-of-administration-or-insolvency-2\/","title":{"rendered":"What Happens When a Business Is Sold out of Administration or Insolvency (2)"},"content":{"rendered":"

Author:\u00a0Barry Stewart,\u00a0Personal and Corporate Recovery Specialist\u00a0and Director\u00a0at\u00a0180\u00a0Advisory\u00a0Solutions Limited<\/b>\u00a0(see whole article<\/span><\/a>).
\n 
\nContinued from part 1<\/span><\/a>
\n 
\nCan the company or business recover?<\/strong>
\n 
\nSometimes (albeit quite rarely) businesses that may be healthy in the long-term and need the protection of administration to allow time for the rescue or restructuring process to be executed.
\nFollowing the restructuring, the company exits administration either by the ending the administration or via a Company Voluntary Arrangement<\/a>.
\nWhile only companies can enter administration, it is possible (with a good insolvency practitioner and favourable circumstances) for companies and<\/i> businesses to be saved under any form of insolvency appointment \u2014 even liquidation<\/a>.
\n 
\nCan parts of the company or business recover?<\/strong>
\n 
\nWhile the company itself cannot be rescued, parts<\/i> of its business often can. The other parts \u2014 the bits that may have dragged the whole business down \u2014 can be closed.
\nAn administrator will quickly assess whether there are any viable parts of a business and seek to keep these trading whilst a buyer is sought for the “good” parts of the business.
\nAdministrators often have more tools at his or her disposal and fewer constrains than the company’s directors, allowing the administrator to better identify and save the good parts of the business.
\nAs I mentioned above, while only companies can enter administration, it is possible (with a good insolvency practitioner and favourable circumstances) for parts of companies and businesses to be saved under any form of insolvency appointment \u2014 even liquidation.
\nIf there is a viable business<\/b> involved and the liquidator is good enough, a liquidation can still result in the rescue of all or part of the business<\/b>.
\n 
\n\"Who-Buys\"<\/a>
\n 
\nWho buys the business or parts of the business?<\/strong>
\n 
\nThe administrator’s primary duty is to maximise the amount of money for the creditors. This is the same for all types of insolvency.
\nHow they best achieve this, however, is up to their professional judgement.
\nWhen selling a business or its assets, the administrator must be able to prove that the best possible price was achieved. They must be able to prove this regardless of whether the purchaser is an independent third-party or someone who is already involved in the company.
\nOften a creditor’s initial gut reaction is that it cannot possibly be right that the previous business owner buys the business and\/or assets and carries on. Cynically, they think they’ve done a dodgy deal, dumped all the liabilities and gotten away with nothing short of theft!
\nHowever, the reality is that previous business owners and directors can often be\u00a0the ones\u00a0who offer the highest price and so a sale to them generates the greatest recovery for creditors.
\nIn these cases, the insolvency practitioner will be able to demonstrate that this was the best price. For example, they may\u00a0compare the accepted price to an independent expert valuer’s report.
\nTo Be Continued…
\n <\/p>\n","protected":false},"excerpt":{"rendered":"

Author:\u00a0Barry Stewart,\u00a0Personal and Corporate Recovery Specialist\u00a0and Director\u00a0at\u00a0180\u00a0Advisory\u00a0Solutions Limited\u00a0(see whole article).   Continued from part 1   Can the company or business recover?   Sometimes (albeit quite rarely) businesses that may be healthy in the long-term and need the protection of administration to allow time for the rescue or restructuring process to be executed. Following the […]<\/p>\n","protected":false},"author":2,"featured_media":1277,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_locale":"en_US","_original_post":"1397","footnotes":""},"categories":[2],"tags":[],"class_list":["post-1397","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","en-US"],"acf":[],"_links":{"self":[{"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/posts\/1397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/comments?post=1397"}],"version-history":[{"count":0,"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/posts\/1397\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/"}],"wp:attachment":[{"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/media?parent=1397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/categories?post=1397"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/tags?post=1397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}