A Phoenix Company is a description often given to a new Limited Company established immediately following the liquidation of an insolvent business.
It is perfectly legal to form a new company from the remnants of a failed company. The phoenix company arrangement allows a business to start again and for the profitable elements of the failed business to survive, offering some continuity for both suppliers and employees. Before forming any new company, the Directors should call 0800 1804 933 for advice; there are potentially serious consequences if Section 216 of the Insolvency Act is breached in relation to the choice of company name.