Why the client needed our help
Our creditor client was owed £2.5 million by a company that had entered administration. A portion of this debt was personally guaranteed by the company’s director.
During the administration process, the director refused to deliver the company’s books and records, despite numerous large and unexplained transactions (amounting to millions) being made to the director and connected third parties without consideration.
Despite our demands for payment under the personal guarantee, the director failed to make any payments.
How we helped
We were instructed to pursue the director for the amount owed under the personal guarantee, which ultimately led to the presentation of a bankruptcy petition. This strategy was pursued to (1) secure partial recovery of the sums due to our client under the personal guarantee, and (2) enable a Trustee in Bankruptcy to take control of, and investigate, the transactions made by the company to the director, thereby assisting the administrator’s investigations and increasing the prospect of a full recovery for our client.
The outcome
Although the director vehemently opposed the bankruptcy petition and sought adjournments with various explanations, we successfully obtained a bankruptcy order. We persuaded the Court that there were no real prospects of payment being made and that the director’s witness statement and evidence lacked credibility.
A Trustee in Bankruptcy has since been appointed to investigate the bankrupt’s assets and is working alongside the administrator to maximize the return to our client.
A good outcome after a lot of metaphorical heartache. Thanks to you personally and FWJ for the support.
– The creditor who appointed FWJ.
