Asset stripping is one of the most common means of dealing with hostile takeovers and corporate wars. It is equally often used by the owners of the target firm to defend against hostile takeovers and by the aggressor companies in the event of an attack.
Instructions
Step 1
There are several ways to withdraw assets. Contribution of the company's property to the authorized capital. The assets selected for transfer can be transferred to the authorized capital of another "controlled" company. This method is one of the most widespread in Russian practice. Moreover, according to the Civil Code of the Russian Federation and special laws on joint stock companies, as well as limited liability companies, participation interests and shares can be paid for with almost any property, even real estate, securities or property rights. In this situation, the property of the owner company is transferred as a contribution directly to the authorized capital of another company, which results in a complete transfer of ownership of the transferred property to a new entity (legal entity), and the owner company retains only the obligations of a participant in the company.
Step 2
You can also withdraw assets by concluding a sale and purchase agreement with a deferred payment. Thus, a potential bankrupt sells its products with a deferred payment, and the front company either pays a certain part of the cost of the goods, or does not pay off its debt at all. And then he resells all the products further. This method is used to transfer an already finished product to another enterprise.
Step 3
Another scheme for the withdrawal of assets is the purchase of certain promissory notes that are not circulating at this time on the organized securities market. That is, a firm that is going to become "bankrupt" issues bills specifically to implement the withdrawal of assets. As a result, only impaired bills will appear on its balance sheet. Real money can be transferred to third companies.
Step 4
In the event that the company has shares, and they urgently need to be “withdrawn” from the company, the most common method is to exchange the owner’s shares for shares or shares in other companies. You can also draw up an agreement for the sale and purchase of these shares with payment by installments or pledge securities.
