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Powerful Hunting Impulse of Beagle Puppies Sherrie Niblock
Submitted 2014-01-28 09:33:52

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Article From Article Directory Database Pre pack administration (or Phoenixing) is becoming
more and more popular as a way of rescuing a failing company. The process
involves setting up a new limited company which then buys the assets of the old
business.

The assets, employees and even company names are transferred to the new company. This new company then starts to trade as normal free from
debt Anthony Tolliver Kings Jersey , and the old business is then normally liquidated.

A pre pack administration has significant advantages over other company rescue solutions

So what are the advantages of a pre pack over other business debt rescue solutions?

Firstly, historic debt is left with the old business in pre pack. This means that the new pre pack business can
start trading without having to pay back the historic debt of the old company.
This is in marked contrast with a company voluntary arrangement. With a pre pack
the new business does not have the burden of this debt and can therefore start
to trade profitably.

Another advantage is the option to find more suitable premises or renegotiate with the landlord. If the old business was
struggling with lease property which was no longer required, or was on
unfavourable lease terms, the new company has the opportunity to renegotiate to
change these.

It is also of benefit that the pre pack process means that the company s business assets and employees are keep together. If key assets or
teams are broken up as is often the case in an administration process, a
business is not able to continue successfully even if it no longer has to
contend with its debt.

So what are the downsides to doing a Pre Pack Administration?

A lump sum of money will be required with which to buy the assets of the old business. As an absolute minimum you will need around
GBP15 Authentic Willie Cauley-Stein Jersey ,000. The actual amount will depend on an independent valuation of the assets including goodwill and work in
progress.

In addition to the sum required to buy the old business assets, when considering their budgets, the new business owners and directors will also
have to factor in working capital for the new business.

Some believe that pre pack can be used to reorganise staff getting rid of any not required.
However this is absolutely not the case. European law (TUPE) requires all
employees to be transferred to the new company when another company buys it, and
under the same terms and conditions. If some employees are not required then the
new company will have to make them redundant taking into account all of their
employment rights or face claims for unfair dismissal.

In many instances, pre pack administration is a very good way of saving a business as . Cheap Nike NFL Jerseys   Cheap Jerseys   Cheap Jerseys China   Wholesale Jerseys Free Shipping   Wholesale NFL Jerseys   Cheap Jerseys   Wholesale MLB Jerseys   Wholesale Jerseys   Cheap NFL Jerseys   Cheap NFL Jerseys China 

Posted 17 Jan 2018

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Posted 16 May 2018

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