Sometimes the best situation for a company is a formal insolvency process, where the business is placed in administration and an insolvency professional appointed.

If the business can be salvaged, it is possible for the directors of the old company to make an attempt to buy it back, forming a new company (a phoenix) to act as the vehicle for the purchase.

In these situations, Now Financial Advisory works with the directors to mount a bid to purchase the assets of the old business. As long as it can be clearly demonstrated that this represents the best position for the creditors and is better than any other bid, it is likely to succeed. Now Financial Advisory can help leverage the assets of the old business to raise funding to enable the new company to purchase. As a phoenix business it is unlikely that there will be much bank appetite for an overdraft facility, so invoice financing comes into its own, bringing much needed liquidity to the new business.

The case study below highlights this situation:

A multi-million turnover business wrestled with the problems brought about by a large bad debt before taking advice from an insolvency practitioner, which led to the business being put into administration. The majority of the companies assets needed for the continuance of the business were financed through a large number of different lenders. Individual negotiations could not be concluded in time so Now Financial Advisory successfully concluded a single asset refinance deal. This settled all existing agreements and transferred the assets into one transaction in the name of the new business.

To find out more about how we can help your business with a Pre Pack Administration, call us today on 0870 950 3828 or email info@nowfinancialadvisory.co.uk