Why sell a company in bankruptcy
One of the challenges for companies in crisis is getting enough liquidity to satisfy creditors without losing all equity. Reaching the liquidation phase supposes the extinction of the legal personality, that is, the end of the company.SELL YOUR PRODUCTIVE UNIT NOW
But while in crisis, it is difficult for a company to have enough assets to face its debts. And here is where the productive units come into play.
The bankruptcy process seeks to satisfy the creditors’ debts. But it also seeks the company’s recovery or financial cleanup to minimize the insolvency impact.
In this case, the company can sell the whole or part of its structure of production.
In this case, the company can sell the whole or part of its structure of production. As long as you find investors, you will get a significant source of capital that can save it from liquidation.
Why buy a company in bankruptcy
Buying a company in bankruptcy can bring many benefits to the investor. Due to the critical situation of the company, you will acquire the productive units at a much lower price than the market price, in fact, it is common for the investor to only pay a symbolic price, taking over a part of the bankrupt’s debts in exchange for the productive unit.SELL YOUR PRODUCTIVE UNIT NOW
This purchase can occur at a time before the contest (for example, through pre-pack, of Anglo-Saxon origin but with a growing acceptance in Spain). But also during the different settlement phases.
Buying a productive unit, the investor obtains an organized set of means of production at low cost which allows them to launch in the market with a proven and structured business model with the necessary assets to operate.