UK is a “bankruptcy brothel”
Slightly seedy and attracting dirtier elements from poorer European neighbours…
Our pre-pack administration process is not without its critics.
Particularly as it seems to be attracting insolvency tourism from multinationals looking for lenient bankruptcy regimes.
The Times: A GREEK multinational company has deprived creditors of £1.3 billion by claiming that a one-man London office was its global headquarters and exploiting lenient insolvency rules introduced by Labour.
Wind Hellas, Greece’s third-largest telecoms company, moved its assets to Britain from Luxembourg in August. Its tiny London head office consisted of one man, one desk and a computer.
The apparently cynical move to deprive creditors led to them dubbing the UK a “bankruptcy brothel”. Nice. Well, better than a “bankrupt brothel” anyway.
