And what about the

Yes Keeping it real, you are correct. The MD put the original company into administration, set up a new company to buy the old company at a fraction of the price. And what about the debts run up by the MD you ask? They are written off by the banks, and as there are no assets (having been sold at cut price to the new company) creditors are left with nothing because the debts stay with the old company and not with the MD and his new company.

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