Selling debted company

[winnie-uk]

Hi,

I am selling my company which has a debts (some utilities, little rent arrears and business rate debts) and i have someone interested in purchase of company.
Company i'm selling is limited company and buyer is individual who wants to take over and be owner/director of my company.
What is procedure and what papers shall i prepare/sign? All i want that at later stage none of my creditors wont chase me.

Cheers

[wales01man]

Re: Selling debted company

are the debts in the name of the ltd company?

[winnie-uk]

Re: Selling debted company

are the debts in the name of the ltd company?

Yes - business rates and few utilities.

[enquirer]

Re: Selling debted company

Just sell the company, lock, stock and barrel. Make sure that all the liabilities are included in the balance sheet.

[teaboy2]

Re: Selling debted company

So long as the debts are in the limited company name, then they are not your debts they remain the limited companies debts and the new owner will have to pay them from company funds or his own capital loan into the company. Though make sure you are not a guarantor to any loans for the company, as they remain your responsibility if you signed as a guarantor, in which case you will need pro legal assistance in having the debts signed over to the new company owner especially if its a mortgage on company premises or similar.

Personally get pro legal advice and have a solicitor deal with the sale fully to be on the safe side. I personally would not dream of selling my company privately, which i assume is what your doing!

[Sapphire]

Re: Selling debted company

I have my business up for sale, you should really go through a professional body, we are using www.knightsbridgeplc.com