Protection from a government agency - Anti-Dumping

Our client was in the business of importing and distributing building materials. They were concerned with the application of anti-dumping penalties to their industry.

We transitioned the client's business into a new entity, and moved inventory and intellectual property to new entities.  Over a period of a few months the existing business burned through existing inventory, collected accounts receivable and distributed assets to shareholders.  Our hope was to leave an empty shell of an entity for the government to collect from.  The client successfully avoided the imposition of penalties against the assets of the new business.

It should be noted that with these structures a savvy creditor can make a successor liability argument.  If such an argument is successful, the new business we set up would have been liable for the debts of the old business.  With careful planning, successor liability may be avoided.