Phoenixing
The process of continuing a business through a new company after an earlier company fails. It must be structured lawfully and not used to evade creditors improperly.
Related terms
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Trading while insolvent
Continuing to operate a business when it is insolvent. This is not automatically unlawful, but directors must act carefully and comply with duties to creditors.
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Successor company
A company that takes over some or all of the business, assets, customers or operations of an earlier company.
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Duty to creditors
The principle that directors must give increasing weight to creditors’ interests when insolvency is probable or the company is insolvent.
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