Bankruptcy and Liquidation are unfortunately a sign of the times.
So what happens to the assets of all these insolvent companies?
Almost without exception, every insolvent company is placed in the hands of an insolvency practitioner – a liquidator or official receiver – who is responsible for liquidating the company assets. Their disposal and conversion into cash.
The insolvency practitioner’s primary concern is to ensure there is enough money in the company to pay his fees, with any cash left over being distributed to the creditors. With the emphasis on speed rather than value the true worth of any assets is often secondary. By far the quickest, easiest and most effective way for them to achieve this is by way of public auction or tender.
There are many specialist auction houses already but because of the current trend, even traditional auction houses are including goods from companies in receivership. This also applies to individuals who wish to sell their goods due to personal bankruptcy.
In the majority of cases, the practitioner will appoint a selling agent, and between them they will decide on on the best method of disposal. Auction, tender or private treaty. The agent will then handle the disposal of the assets, and usually earn a commission based on what he can realise for the assets. Our News service includes comprehensive details of these types of sales.
In some instances, the practitioner will attempt to sell the assets directly or advertise the business for sale as a going concern.
Check out Bankruptcy & Liquidation auctions.