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Inter company debt

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


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28th Nov 2012 13:33

Fast response is...


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)
By Pns
to mrme89
29th Nov 2012 22:48

Thank you for your comments, much appreciated.

All the best

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