Join Date: Feb 2007
Location: Spain + Germany
My Motorhome: Four Winds RV
Thanked 482 Times in 454 Posts
Peter says, "Its strange to me that with 'Phoenix companies' the same Directors can then buy the assets at a no doubt knock down price and if they are using their own money why didn't they be honourable and put the cash back in the business in the first place to pay suppliers and keep the business going in an honourable way. "
Because the two sums of money would be vastly different. Rescuing the company would cost much more because eventually all due debts would have to be attended to. Taking over the company from receivership would cost very much less, a fraction as much, and of course leave many creditors in the lurch, Alan.