20 September 2022: We are all busy bees here at the BRI hive with enquiries continuing to be received regarding a range of matters. Being both small enough to care and large enough to handle more complex matters, we are well positioned to deal with companies of all shapes and sizes.
One recent enquiry in particular had us delving deep into our knowledge banks to utilise a lesser known device found within the corporate insolvency tool bag; the hive down option. The hiving down of an insolvent company’s assets to a subsidiary is a mechanism that is available to insolvency office holders.
Once assets have been transferred, the shares of the subsidiary can then be purchased by an interested party who wish to obtain the assets via a corporate vehicle not laden with liabilities. A sale of assets via this method can sustain trade which in turn saves jobs, gives suppliers and customers a new business to trade with, while also achieving the best value for the insolvent estate’s assets.
The process isn’t without challenges with potential downsides including the costs of the process and contractual terms which may not allow for certain assets or agreements to be assigned to the newly formed subsidiary. However, it is a means of achieving best value for assets that should not be ignored.
It is hoped the above demonstrates that there are many strings to an office holder’s bow and here at BRI we make sure that every one of them is considered when finding the best way forward for anyone that seeks our assistance.
Therefore, if you have any matters, large or small, simple or complex, please do not hesitate to contact BRI and we will provide the right advice first time every time regardless of the fee outcome for us.