Phoenix Finance
Restart funding for businesses emerging from insolvency.
When a fundamentally viable business finds itself in financial distress \u2014 whether through legacy debts, a failed contract, market disruption, or poor financial management \u2014 phoenix finance provides a route to rescue the productive elements of the business, preserve jobs, and restart under a new, viable structure.
Aberdeen Corporate Finance has significant experience in arranging phoenix and business rescue transactions. We work at pace, understand the urgency, and have access to specialist lenders who actively fund restart situations where mainstream banks will not.
Phoenix Finance Solutions
Pre-Pack Administration
A structured process where the sale of the business and its assets is arranged before the company enters formal administration. This preserves value, protects jobs, and ensures continuity of trading — while leaving behind legacy debts and liabilities that made the original company unviable.
Business Rescue Finance
Urgent funding to stabilise a business in financial distress, covering immediate working capital needs, critical supplier payments, and payroll obligations. Speed is essential — we can arrange rescue finance within days when the situation demands it.
Management Continuity
In most phoenix scenarios, the existing management team continues to run the business under the new structure. This preserves operational knowledge, customer relationships, and supplier confidence — critical factors in a successful restart.
Asset Purchase Funding
Finance for purchasing the assets (goodwill, plant, stock, debtors) from the insolvent company — either through administration or liquidation. We arrange funding structures that reflect the distressed nature of the acquisition and the restart dynamics.
Working Capital Facilities
Post-restart working capital is essential. We arrange invoice finance, revolving credit, and other cash flow facilities to ensure the new company has sufficient liquidity to trade effectively from day one.
Growth Post-Restart
Once the business is stabilised and trading successfully, we can arrange further funding for growth, expansion, and investment. Many phoenix businesses go on to become highly successful enterprises freed from the burden of historic liabilities.
When Phoenix Finance Is Appropriate
The Process
Urgent Assessment
We assess the situation rapidly — the viability of the business, the available assets, the management team, and the funding options. Time is critical in distressed situations.
Funding Arrangement
We arrange the finance for the asset purchase and post-restart working capital. This typically includes a combination of asset purchase funding, invoice finance, and working capital facilities.
Coordination with IP
We work alongside the insolvency practitioner (IP), your solicitors, and other advisors to ensure the restart transaction is structured correctly and completes smoothly.
Restart & Stabilisation
Once the new company is trading, we ensure adequate working capital facilities are in place and support the business through the critical early months of the restart.
Important Notice: Phoenix transactions involve complex legal, regulatory, and ethical considerations. Directors must comply with their legal obligations. Professional insolvency and legal advice is essential. Aberdeen Corporate Finance Limited is not regulated by the FCA.
Business in Difficulty?
If your business is viable but burdened by debt, contact us urgently for a confidential discussion about rescue options.
Get Urgent Help