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Hive Down
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A hive down is a transfer of part of a company's business and/or tangible assets to another company, normally a new company created for this purpose. Hive downs can be particularly useful to separate a viable part of a business, often prior to a disposal as a going concern. If a company is unable to propose an arrangement to creditors, it may still be possible to continue the business, protecting the position of the employees, customers and limiting liabilities under guarantees, whilst obtaining the best return for creditors. This can be achieved through a hive down which is a sale of the business as a going concern to a new company. This procedure is open to abuse, and great care must be taken to ensure that creditors' interests are protected and the directors of the company do not put themselves at risk by breaching provisions of the Insolvency Act. We have the experience and skills to provide the necessary support.
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This document explains the relevant position only in general terms. We do not intend it to be used as formal advice about a specific situation, for which you should consult with a qualified insolvency practitioner and not rely upon this document. Portland would be pleased to advise you formally and you should contact one of the directors listed to arrange this. Portland regrets it is unable to accept any responsibility to anybody who seeks to rely on this document. |
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