Company in administration
Discussion
A company that owes me several thousand pounds is in administration and has been bought out/rescued by a fellow family company. I think it was all a ploy to get out of paying creditors.
Anyway I understand that they administrator only has enough money to pay the secured lender and that even the secondary lenders will not get all their money back. Ofcourse this means that muggings and fellow unsecured lenders will get nothing.
I’m totally livid, is there anything I can do?
Anyway I understand that they administrator only has enough money to pay the secured lender and that even the secondary lenders will not get all their money back. Ofcourse this means that muggings and fellow unsecured lenders will get nothing.
I’m totally livid, is there anything I can do?
suggest that nice merc over there etc might be suitable in exchange, that type of thing. I've only ever dealt with this from the same point of view as you, sadly.
I believe that if you can prove the directors knew the company was not a going concern when they took your goods/services, you can hold them responsible. Proving such a thing, as you can imagine, is hard.
If you don't mind, what do they owe you the money for? Any goods that can be siezed, or services withdrawn? Is the "new" company still benefitting from your work?
I believe that if you can prove the directors knew the company was not a going concern when they took your goods/services, you can hold them responsible. Proving such a thing, as you can imagine, is hard.
If you don't mind, what do they owe you the money for? Any goods that can be siezed, or services withdrawn? Is the "new" company still benefitting from your work?
There are a couple of things you can do.
If the Directors knew, or should have known, the business was insolvent at the time of incurring your liability then you could pursue them for wrongful trading - i.e. pursue them financially as individuals; or
If you think the administration is a sham you could ensure the liquidator subsequently appointed is different to the administrator and encourage them to review the transaction. This would require funding of the Liquidators and Court costs.
Under both scenarios I would encourage you to consider the cost/benefit. If there are no further assets in the administration then either route will require funding by the creditors. If you're convinced the second scenario in particular is relevant it may be worth a call to HMRC - they're usually the largest creditor and have considered funding such cases in exceptional circumstances.
If the Directors knew, or should have known, the business was insolvent at the time of incurring your liability then you could pursue them for wrongful trading - i.e. pursue them financially as individuals; or
If you think the administration is a sham you could ensure the liquidator subsequently appointed is different to the administrator and encourage them to review the transaction. This would require funding of the Liquidators and Court costs.
Under both scenarios I would encourage you to consider the cost/benefit. If there are no further assets in the administration then either route will require funding by the creditors. If you're convinced the second scenario in particular is relevant it may be worth a call to HMRC - they're usually the largest creditor and have considered funding such cases in exceptional circumstances.
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