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Bust companies revived in ‘phoenix’ deals more likely to fail again, study finds
Exclusive: research for the Guardian shows ‘pre-pack’ deals with former management also pay far less to creditorsThe boss whose twice-bust business appears to be backInsolvent businesses reacquired by their previous management in “pre-pack” administrations are much more likely to fail again and tend to repay far less to creditors, research for the Guardian suggests.The study is the latest to raise questions about the practice of “phoenixism” – accounting’s controversial art of liquidating companies to allow directors to return with a new entity, free of debts. Continue reading...
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