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Britain the “insolvency brothel”


Does he have a point?

Well, it is certainly an interesting development that companies are re-registering in the UK to take advantage of our insolvency laws and pre packed administrations will continue attract controversy. It is entirely understandable that the creditors of Wind Hellas (the Greek telecoms group who recently re-registered in London and then went into pre pack within 14 days) are angry, but if Wind Hellas were insolvent, then what difference did this make? Then again, were they truely “insolvent”? Were they taking advantage of prepack to despatch their no doubt onerous liabilities?

I know at least one experienced insolvency practioner reads this, so would perhaps be interesting to hear some comments….!

And of course, the UK IP industry will not be unhappy with the fees such “re-registering” will produce. Nothing wrong with that…

There is always sympathy for unsecured creditors but on the other hand, companies of this size (and admittedly I havent investigated their record) rarely fail without there being significant warning signs. Clearly it is more difficult for some creditors than others to “get out” but Wind Hellas’s last balance sheet will make for interesting reading. Well, to me anyway…

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