Case Study: Preserving Assets in a Liquidation Scenario
The Situation:
Sarah owned a manufacturing company that had fallen into financial difficulty. The company owned specialised equipment worth $85,000, crucial for its operations but also its most valuable asset.
The Challenge:
The company was facing liquidation, and Sarah was concerned about losing the specialised equipment, which would make it impossible for her to continue in the industry.
LemonAide’s Approach:
- Assessed the company’s financial position and asset values
- Advised Sarah on the liquidation process and her rights as a director
- Developed a strategy to potentially retain the crucial equipment
- Negotiated with the appointed liquidator on Sarah’s behalf
The Outcome:
Sarah was able to purchase the specialised equipment from the liquidator for $45,000
This was a fair deal for creditors, as the liquidator has the assets valued and would have received less money for creditors at auction after the specialised equipment would have been collected and sold at auction. Sarah set up a new company with proper asset protection measures. The new company could continue operations in the industry without losing key equipment
Key Takeaway:
Even in a liquidation scenario, there may be opportunities to preserve crucial business assets. Professional advice and negotiation can help directors navigate this process effectively.
Facing liquidation but worried about losing vital business assets? Don’t make decisions without expert advice.
