Our
expertise is used by recovery specialists in all aspects of
business rescue including formal corporate procedures, turnarounds,
security reviews and financial restructurings internationally.
Although
there have been some changes in the law phoenix companies
can still be a problem for creditors and professionals involved
in this area. Businesses and assets, particularly IP, sold
at derisory prices sometimes to new companies with the same
proprietors have long illustrated the problems with Section
216 of the Insolvency Act 1986, which was clearly inadequate.
Professionals that
work in this area require comfort from us in order to achieve
maximum returns for creditors, particularly following the
important decision in the Western Intelligence case. We work
closely with the insolvency professional in accessing the
optimum disposal route and in asset identification and we
sometimes act through advertisements and other media as their
stated agents.
Intellectual
property often represents a major component of value in any
business enterprise including those potentially in distress.
Delay in time to market or product recognition, delay in revenue
recognition, unsustainable margins, competitor environment
and working capital imbalances are key distress indicators.
IP
valuation in this combative environment acknowledges orderly
disposal and an asset possibly bereft of supporting intangibles
(e.g. knowledge). However, there could be positive aspects
in that a purchaser may not be so tainted and have more ability
and IP to enhance significantly what it acquires.

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