Presenter Doung Contable on Phoenixing Starting a Business Again Who Owns the Assets

By March 26, 2019Doug Constable

The term Phoenix is actually comes from the bird of Phoenix whose rises from the ashes now again as I’ve previously said there’s nothing wrong with rising from the ashes and starting again where the loss is that you shouldn’t take assets from this identity and transfer them to this identity without commercial market valuation so if you’ve got a coffee making machine and it’s in this business and this business starts up and the coffee making machines worth $5,000 and this business pays $5,000 for the coffee making machine to this one and it transfers over that’s fine that’s where you transfer it over for a dollar and one of the things that Liquidators look at is was that their commercial value to swap it over and so that the $5,000 becomes available to all the creditors not just select rent and as all were creditors in this business.

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Now one of the common things that sneeze a mistake is if I take five thousand dollars out of my pocket and I buy a coffee machine that’s really my coffee machine it’s not the business’s coffee machine the business may use it but it’s still mine and it’s quite often I find what happens these people say oh he’s taken the coffee machine and put it in the new business.

So he stole from this business or the Phoenix that from this business well he didn’t that was his as an individual and so these are the sorts of things that we need to look at from a liquidation point of view very carefully who actually owns the coffee machine or who actually owns the assets the assets that are owned by the company and earlier the companies and they should be sold to the highest bidder to maximize the money to

the creditors or to the liquidator because remember the liquidators fees come first and the ones that the liquidators have difficulties with ones that are personal contacts so in other words, you have personal contacts that you supply that really aren’t the context of the business that they do your personal context and how do you put a dollar value on that requiring the business and these are the sorts of things that you discuss with the liquidating you just don’t accept what by say you discuss it with them on work at air