“Phoenixing” is a dirty word, but it’s completely legal if done right. Sometimes the best, or only, way to save a business and deal with its debts is for the owners to buy back their business before liquidation.
When a business has ATO and other debts it can’t pay, everyone hopes to save it with a Small Business Restructure (SBR) or Voluntary Administration (VA).
But often an SBR or VA isn’t a realistic option, or perhaps an SBR attempt has already failed. If so, business owners are often left with one choice - buying back the company’s business and assets before liquidation. This is commonly referred to as “phoenixing”.
It’s a controversial topic but “legal phoenixing”, where directors buy back the business or assets through a new entity for fair value, can be legitimate, effective and provide better outcomes for creditors when handled correctly. Done properly, it can protect jobs, provide funds for creditors, and give the business a genuine second chance.
In this webinar, lawyer Thomas Russell (Piper Alderman) and liquidator, Jarvis Archer (Business Reset) will cut through the fear and show when an asset buyback is appropriate, how to structure it safely, and what separates a lawful restructure from “illegal” phoenix activity.
What We’ll Cover
When an asset buyback is the best option to save a business and deal with its debts.
What “legal phoenixing” actually means, and why it’s controversial.
The key benefits of a properly structured pre-liquidation sale.
How to structure a sale and calculate the price to keep it legal.
Common traps to avoid.
How liquidators and regulators assess transactions and what “fair value” really looks like.
How to deal with a situation where the liquidator may disagree.
Real-world examples covering a range of situations.
What You’ll Learn
You’ll leave with a clear framework to:
Identify when a legal phoenix is the best option to deal with financial difficulty.
Distinguish between “legal” and “illegal” phoenixing.
Structure a legal buyback of company assets before liquidation.
Help clients restructure without crossing legal boundaries.
How to protect your own professional exposure when assisting clients in financial distress.
