Phoenix company

For companies named Phoenix, see Phoenix ยง Business.

A phoenix company is a commercial entity which has emerged from the collapse of another through insolvency, to replace it. Unlike "bottom of the harbour" and similar schemes that strictly focus on asset stripping, the new company is set up as a legal successor, to trade in the same or similar trading activities as the former, and is able to present the appearance of "business as usual" to its customers. It has been described as "one that arises amidst or from the disarray and demise of its predecessor." While some such companies are set up innocently, others deliberately use the process to avoid debts or taxes.

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