Is it permissible to buy a company on condition that one pay off its debts?

Dear Brothers & Sisters,
As-Salaamu-Alaikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)
One of our brothers/sisters has asked this question:
Is it permissible to buy a company that owes money, on condition that the purchaser take on these debts?
(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)
Check below answers in case you are looking for other related questions:

Answer:
Praise be to Allaah.

That is permissible if he takes on the debts in return for taking possession of that company, whether he pays a sum of money to its owner or he takes possession in return for taking on the debts only, such as saying, “I will buy this company for 500,000 and pay 300,000 to you in cash and take on 200,000 that the company owes to people 

Whatever written of Truth and benefit is only due to Allah's Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.

Related Answers:

Recommended answers for you:


Don't miss out to watch Islamhelpline sponsored Islamic Kids Competition

Click here for all videos