Tuesday, March 13, 2018

Crooked Capitalism

Experts have expressed concern about the number of “phoenix” companies, which are created by directors after a firm is put into what’s known as a pre-pack administration. 
In a pre-pack, a company’s assets are sold before an administrator is appointed. The company can then legally start up again under a new name, but often the same directors, or people linked to them, buy up the assets, while creditors are left with unpaid invoices.

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