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Written by ndhart, on 13-07-2009 10:31 This is very complex, and the quick answer is that you are at the mercy of the bank.     For example, if the bank knew that those signing the guarantees only did so if all did, then it could be argued that, until the last gtee is in place, none of them are binding. The difficulty is that talking to the bank about this might make the bank freeze the account, which will precipitate the closure of the business and make the phoenix operation more reasonable.    Alternatively you can unilteerally withdraw your guarantee if the facility is not being used (although there is normally a 3 month cooling off period).    Remember though that there is goodwill attached to the current business, and the drectors have obligations to ensure the old company gets paid full value for the goodwill if they start the phoenix operation. It might just be worth telling them how much you would insist the liquidator charged them for that goodwill, making the phoenix operation a more expensive bet than sorting out the existing business.