Quote: Toadstool "I really don't see why it is any fault of the new owner. He wasn't involved in the old company so why should he be liable for their debts?
Without some form of process to deal with the failure of a Limited Liability Company no-one would ever take a commercial risk (it all goes back the the South Sea Bubble).
Administration in itself is not perfect but it can be a good way of saving a business from the scrapheap, preserving jobs and returning some value to creditors. It has got a bad name over the years due to some very high profile cases involving "pre-packs" where the same people end up owning the assets after the process but with the debt removed, but that is a product of the behaviour of individuals rather than a failure of the principle. Chapter 11 in the USA has a similar problem and they are also looking to close loopholes.
I have contributed to various working parties looking into how to improve the management of a company's failure and it is constantly reviewed - the removal of Crown Privilege as recently as 2002 for example - but unfortunately there are always very clever people looking for ways to get an advantage by sharp practice.
For what it's worth I think the Bulls are just victims of bad management and incompetence by the previous regime and there are no shenanigans going on.'"
I agree with everything you say however pre pack admin is just a cop out. Sounds awful but if you can't get fair value (and I GENUINELY believe some administrators are brought in as yes men, who hired this particular administrator?) then the company should be liquidated and Bradford should start again.
I simply cannot understand how Wakefield have a scenario in which all their best players are sold, and left with the bare bones to start again and Bradford get off relatively scot free.. lets be honest, it could feasibly be a strong bulls team next year.
The creditors in this scenario will be left with absolutely diddly squat due to criminally bad management and bad faith while the club suffers a whopping 6 point deduction and carries on as normal. Pre packs absolutely stink.
