So, your company went into liquidation and subsequently you receive a letter from solicitors acting for the liquidator, demanding you pay a sum of money in respect of various allegations of unfitness. What do you do?
Well, the first thing you should do is consult with a solicitor that practices insolvency as they will be aware of the terminology and implications relied upon with insolvency litigation.
However, there has been an increasing demand upon insolvency practitioners (“IP”) to represent those confronted with insolvency-related claims. Sometimes, assisting the instructed solicitor, while others have approached them directly.
At PBC we have (what is thought to be) a unique service, whereby we have the only person who is both an appointment taking IP while also an accredited mediator. That, together with the Team at PBC having a wide and extensive range of experience, allows PBC to offer pragmatic and commercial solutions.
Two recent examples of where PBC have assisted have been:
Case 1. A liquidator was pursuing the director for over £100,000 (although were willing to settle at £85,000). Using our experience and knowledge, this claim has been extinguished.
Case 2. PBC’s client was facing bankruptcy for a claim in excess of £200,000. During negotiation, PBC put forward the realities of bankruptcy and, more importantly, the potential recovery the claimant may achieve. Ultimately, a £75,000 settlement was agreed, resulting in the client retaining sufficient money to move on with their life.
It should be said, nobody at PBC has a right of audience to represent parties in court and solicitors are an invaluable aid in resolving disputes. However, as PBC are demonstrating time and again, adding our practical experience and a reality check, often promotes settlement.
If you need any advice or assistance on any corporate restructuring or insolvency-related issue, then please contact PBC Business Recovery & Insolvency on 01604 212150 (Northampton), 01908 488653 (Milton Keynes) or email to enquiries@pbcbusinessrecovery.co.uk. Alternatively, visit www.pbcbusinessrecovery.co.uk for further information.