Pns
Blogger
Share this content
0
2
1444

Inter company debt

I have two companies, Company A and Company B (both limited companies with the same directors)

Company A has a lot of debt and I need to liquidate the company in the next few months as the company will soon be insolvent

Company B owes company A money and I did not want company B to be liable to Creditors of company A when company A is liquidated.

Can I write off company B's debt to company A before I liquidate company A?

A fast response would be much appreciated

All the best

Replies

Please login or register to join the discussion.

avatar
28th Nov 2012 13:33

Fast response is...

No.

As director of A you need to act in the best interest of Co A. Is writing off CoB's debt to Co A in A's interest? I think not. Particularly if it would also push A into insolvency (if it isn't there already...)

 

 

 

 

Thanks (1)
avatar
By Pns
29th Nov 2012 22:48

Thank you for your comments, much appreciated.

All the best

Thanks (0)