personal guarantee

antrobus

Mouse1812 wrote: »

....So back to my original question which sadly remains unanswered by the OP - Limited company debts can be in a constant state of flux and not all of them are covered by PGs, that provides opportunity even when the total debt remains unaltered. Some planning and judicious timing can make significant differences in all cases. ..

That is not a 'nonesense statement'. It might be suggesting a course of action that is unethical or indeed possibly illegal, but it ain't nonsense. Where directors of a limited company have, say provided personal guarantees to the bank for an overdraft, it is not unknown for them to decide to appoint administrators or liquidators at the precise moment in time when the overdraft is at a minimum.

Mouse1812

So long as it is within the normal cash flow cycle there is nothing immoral or illegal about it. A company trading as a pub would be better advised to cease trading on a Monday morning than on Wednesday evening. The "art" is to improve the overall position for the creditors. Closing down sales may also achieve that. I agree great care has to be taken not to unfairly advantage one creditor over another, but sometimes advantage for the PG giver can be a consequence.