Illegal phoenixing is a deceptive manoeuvre used by some businesses to sidestep their obligations, leaving creditors, employees, and other stakeholders at a loss. It involves deliberately transferring assets from an indebted company to a new one, leaving the former to face insolvency. Such predatory practices not only damage the economy but also erode trust in the business community.
Is phoenixing illegal?
Its important to note that there is a difference between illegal and legal phoenixing. The term comes from the mythical fire bird that rises from the ashes. Phoenix activity is when a legitimate and newly created company is registered to take over an insolvent or unsuccessful company.
So, what is illegal phoenix activity? Phoenixing be…
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