Nightcap on Minjungbal: Phoenixing in Action
In modern commerce the phoenix bird is iconic, inspiring businesses burned by debts to rise from the ashes of destruction and continue trading under a different name, leaving their creditors behind. "Like the mythical bird that dies and then resurrects, phoenixing is the deliberate liquidation of a company to avoid paying creditors.. and then the ‘resurrection’ of the business through a different entity. It is illegal. "The negative impact of insolvency is magnified by phoenixing, which enables a company that owes money to creditors and employees to restart without paying its debts." Curbing the Flight of the Phoenix describes how phoenix moves are used by companies in insolvency to divest liabilities. Phoenixing is illegal, but that's not much of a deterrent, and it's become a booming business for delinquent company directors and their facilitators, insolvency liquidators and legal practitioners. The phoenixing of companies for private profit is inspired by le