It’s common for former shareholders and directors of an insolvent company to form a new company to buy the business from the administrator. However, the administrator has a duty to get the best price they can, so the new company cannot buy the business at an undervalue – although a new company owned and run by the former management is often the best buyer for the business, especially if their knowledge of the business and its market, their personal contacts and their ability to act quickly will help keep key employees, customers and/or suppliers on board, so that creditors will benefit.
This will not, of course, be possible if any of the directors are liable to be disqualified from being directors because they acted improperly while directors of the old company. Also, there are restrictions on directors of an insolvent company being involved in a new company whose name is similar to the old company name