Reply to: Britain could turn into a brothel...

[ASB]

They probably issue proceedings against viable businesses.

Not quite. They issue proceeding against non viable businesses denying them the chance to become viable again. Also this is likely to result in a net loss to the treasury - at least in those cases where the business might become viable again. HMRC act pretty swiftly now...

[Mich the Tester]

1 isn't the case here. HMRC are no longer preferential creditors. This is one of the reasons (the main one) why they are now so quick to issue proceedings.

SO actually they are included in the people who shaft creditors, but for a different reason. They probably issue proceedings against viable businesses.

[ASB]

The creditors get shafted by 1: the tax authorities, who have priority over other creditors and 2: insolvency practitioners who smear out the proceedings as much as possible for the hefty fees they can gain from it and 3: bankers, who have often allowed many good businesses to go under due to a short term lack of liquidity and the banks' refusal to lend.

Now I'd love to blame Labour for this, but as I see it they're somewhere down the list.

1 isn't the case here. HMRC are no longer preferential creditors. This is one of the reasons (the main one) why they are now so quick to issue proceedings.

[Sysman]

I'm not well up on it so probably talking tulip but I'm sure it was a change in the law that Nuliebor pushed as 'good for jobs and business' that has allowed the pre pack insolvencies to become a lot easier.

I was impressed by a documentary I saw about a year ago which explained how much easier it is in the US to bounce back from bankruptcy. Several famous names like Henry Ford and Harold Lloyd got a mention there.

(If I remember correctly it is a rescheduling of debt rather than a complete write off, which makes everyone happier to give you another chance.)

[Doggy Styles]

I'm sure it was a change in the law that Nuliebor pushed as 'good for jobs and business' that has allowed the pre pack insolvencies to become a lot easier.

A Labour government should never be allowed to interfere in financial legislation. Of any kind. Because as sure as eggs is eggs, up they will f**k it.

[rootsnall]

The creditors get shafted by 1: the tax authorities, who have priority over other creditors and 2: insolvency practitioners who smear out the proceedings as much as possible for the hefty fees they can gain from it and 3: bankers, who have often allowed many good businesses to go under due to a short term lack of liquidity and the banks' refusal to lend.

Now I'd love to blame Labour for this, but as I see it they're somewhere down the list.

I'm not well up on it so probably talking tulip but I'm sure it was a change in the law that Nuliebor pushed as 'good for jobs and business' that has allowed the pre pack insolvencies to become a lot easier. I've witnessed a couple of low level insolvencies and yes they were carefully drawn out by the insolvency practitioners to use up all the money in the pot down to the last penny. But the more worrying ( and corrupt !? ) cases are the ones were the insolvency practitioners are advising the company pre insolvency and then deem the previous directors as the most suitable bunch to take over the bust business. The recent Clintons one was a good one, the receiver had higher bids but sold back the bust part of Clintons back to them to 'protect jobs'.

[stingman123]

I don't understand any of this I only read it because it had the words Greek and Brothel in the same thread....

[Mich the Tester]

It is a Nuliebor thing to supports 'jobs' and 'business' but forgets about all the creditors that get well and truly shafted. The Directors of the bust business shouldn't be able to rebuy it, simple !

The creditors get shafted by 1: the tax authorities, who have priority over other creditors and 2: insolvency practitioners who smear out the proceedings as much as possible for the hefty fees they can gain from it and 3: bankers, who have often allowed many good businesses to go under due to a short term lack of liquidity and the banks' refusal to lend.

Now I'd love to blame Labour for this, but as I see it they're somewhere down the list.

[rootsnall]

'Bertrand des Pallières, who saw the entire investment of SPQR Capital, his hedge fund, wiped out in the pre-pack of Wind Hellas'

as a fund hedge fund manager, how could this chap put 100% of the fund's money into one investment ?
.

I don't think it says that, just that the hedge fund lost 100% of this particular investment.

The pre-pack element is a scam and needs reigning in. It is a Nuliebor thing to supports 'jobs' and 'business' but forgets about all the creditors that get well and truly shafted. The Directors of the bust business shouldn't be able to rebuy it, simple !

[milanbenes]

'Bertrand des Pallières, who saw the entire investment of SPQR Capital, his hedge fund, wiped out in the pre-pack of Wind Hellas'


as a fund hedge fund manager, how could this chap put 100% of the fund's money into one investment ?

Oh Dear.

Milan.

[Mich the Tester]

Erm, is this really such a bad thing? In Britain personal bankruptcy is over in one year, which means that businesspeople who’ve had a go but failed can quickly get on their feet again. In other European countries, it takes 3 years of living at income support level having lost one’s home and everything else. Here in Holland, people who go bankrupt are unlikely ever to work again. If they get a job they keep the same amount of money as if they get a hand out from the council.

It seems to be that this issue is caused by good legislation in Britain and crap legislation in other European countries, and the solution is for those countries to sort out their rules. In the mean time, Britain should just try to make a few bob out of this.

[shaunbhoy]

Make ya proud, we are doing so well leading the world.

Yes, if there is one thing we can still lead the world in then it is how to go bust........with style!

[HairyArsedBloke]

So we have

tourists
health tourists
welfare tourists
Libel tourists
Pre-Pack Tourists

Make ya proud, we are doing so well leading the world.

[Sysman]

It's no longer "Disgusted of Tunbridge Wells", but Bankrupt of Tunbridge Wells.

[EternalOptimist]

You can do "pre-pack" insolvency/administration deals in the UK when winding up a failing company. When you do this you don't have to involve all of the creditors - you can do a deal with a couple and leave the others hanging - all legally.

This chap is complaining about foreign companies transferring their incorporation to the UK then arranging a "pre-pack" a couple of weeks later. Something which is currently untested in the English courts so people are getting away with it.

HTH ?

So we have

tourists
health tourists
welfare tourists
Libel tourists
Pre-Pack Tourists



wow. What we need are more Russian emigres to help tell us where we are going wrong