Reconstruction and Recovery
Reconstruction is a term used for reorganising the ownership and other parts of the company to make it more profitable. Reconstruction may also occur with the change of ownership structure or a major change in the business such as bankruptcy or buyouts. Reconstruction happens when a company has been suffering from financial difficulties for a number of years. The reconstruction can be internal or external.
Internal reconstruction is to re-organise the financial structure of a company.
A company can sell its business to another newly formed company. The new company is formed to take over the assets and liabilities of the old company, which means the old company can liquidate. The shareholders from the old company now become shareholders of the new company.
If you require further information on reconstruction and recovery call Jeffrey Mills Solicitors.