NuSA 'phoenix from the flames'

By Kevin Sullivan

The matter was handled by Kevin Sullivan, with Elizabeth Dolding dealing with the commercial property aspects.

Kevin acted for the former directors of Nusa Soups and Salads Limited which unfortunately was forced into liquidation. The directors were able to acquire the business of the insolvent company, Nusa Kitchen, in a new venture.

Kevin commented: “A phoenix company is where the assets of a company are moved to a new entity, often with the trading name and the directors remaining the same. The name comes from the well known expression “a phoenix from the flames”.

Phoenix companies are often given a bad press because of rogues who dishonestly divert assets away from creditors by acquiring them at an undervalue and leaving their old debts behind.

The bad press of these ‘bad’ phoenixes overshadows the ‘good’ phoenixes, when legitimate businesses with honest individuals have little choice but to reform, sometimes as a result of third party errors. I was pleased that we could help the individuals behind Nusa Kitchen, and also the employees of the businesses whose livelihoods we preserved, by obtaining permission from the court to re-use the name of the business, a well-known and respected brand in London, following their acquisition of the business at a full going concern value from the liquidators.”

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