Person A and Person B are directors of their company.
Person A loans 100k to the company.
The company ceases trading and the debt is never repaid to Person A. Person A retires. Person B does not.
The company entity is kept alive.
Can Person B purchase the company’s debt to Person A from Person A at a discount?
Eg. Person B pays Person A $10k so that Person A recovers 10% of the initial loan, and the company now owes Person B the $100k.
This has many complexities that cannot be accurately answered by us as we don’t have the whole picture. It will depend on complex legal documents e.g. the company shareholder agreement. Best see a lawyer for this.