If you’ve been served with a winding up petition, selling your assets should be seriously considered as a viable option to help save your business.
In fact, if selling your assets is an option, the sooner you do so the better and preferably before a winding up petition have been presented against your company.
If assets are sold during a company’s liquidation, also known as being sold in ‘distress’, they will be realised for much less than they’re worth.
However, if you sell your assets before reaching the liquidation point, you’re likely to be seen as using your initiative; by selling your assets while they were still of value.
As long as the proceeds from their sale are used to discharge your creditors equally, you’re in the clear from contravening the Insolvency Act 1986.
Assets can range from property; plant, vehicles, stock, sales debtors, works in progress to customer data base, which can be sold on to a third party.
It’s also worth bearing in mind that if you sell assets that, as a result, render the company insolvent, you may be charged with contributing to your creditor’s loss.
Get in touch if you need to seek advice.
Contact Insolvency & Law on 020 7504 1300 for your free and confidential advice and find out how we can help you. You only have a limited time where we can help you will need to act now.