Sell firm in difficulty
When a company is in financial difficulties, one of the alternatives that the employer arises sell a business “Specializing in refloat firms in difficulty”.
You may have seen advertisements for “WE GAIN COMPANIES IN CRISIS, NO MATTER SITUATION”. Or other listings as “BUY YOUR DEBT CASH”.
When the ship starts to sink, is very human attempt to jump and somebody else deal going plugging the leaks, giving explanations to employees, giving explanations to suppliers… Surely that's a nasty job and many people try to get rid of it.
Sell the company (even for one euro) is a viable alternative in some cases, but it is also an opportunity for some easy money scavengers.
There are some savvy to take advantage of the good faith of the former owners and “buy for one euro” a company in crisis, promising the moon and the stars.
It is well known that the best way to fool someone is telling you what you want to hear: “We will take care of the debt, Company reflotaremos, will respect all jobs, pay everyone. Your name will be completely clean, You can go quiet…”
when in reality all they do is scavengers:
1) SELL EVERYTHING SELLABLE: Stock, machinery, vehicles, etc.
2) COLLECT ALL COLLECTIBLE: Customer balances, cash sales, etc.
3) GENERATING COMPANY SCREEN FROM FAKE BILLS, for advisory services, repairs, all the various services, all nonexistent.
4) NOT PAY ANYONE: nor employees, or suppliers, or banks, or Hacienda, etc. And use the bag of money generated in point 2) to pay the false invoices point 3)
In the short term, Company busting, scavengers have taken what little good it was and the previous owner by scavengers remains responsible for the guarantees that had signed and as a subsidiary responsible for the atrocities committed. Because corporate law (and very specifically for these cases, the Bankruptcy Act), establishes the overall responsibility of directors of companies. Where an employer sells a company that is in bankruptcy proceedings, responsibility does not expire by the fact sell.
If the seller of a company has guaranteed loans to the company with its assets, This can be arrested even if conducts the sale.
To avoid, must be reflected in the sales contract the buyer assumes these guarantees; is highly desirable that the bank is present at the sale, since the entity must consent to the change of debtor. Otherwise the previous owner remains responsible guarantor.
Anyway it's relatively easy to distinguish whether the buyer has a legitimate interest in ensuring viable company, or is a vile scavenger that will take advantage of legal loopholes to steal everything you can.
The seller must require the buyer two conditions:
UNA: Reflected in the sales contract the buyer assumes guarantees and obtain the consent of the bank to make that change of guarantor.
DOS: Simultaneously to the sales transaction, should be formalized a capital increase by the buyer. That is the way to show that the buyer is really committed to the future of the company. If that investment commitment is made only in words or writing and then fails, the seller can not be held accountable to the buyer. This commitment is valid only if signed before a notary in the form of capital.
A scavenger never accept these conditions. A buyer interested in the future of the company itself will.
We know that it is very unpleasant to manage a company in crisis, but sell it to a scavenger will only make things worse for everyone: to the former owners, for employees and suppliers of the company.
