Why the Client Needed Our Help
Our client received a letter before action from liquidators claiming more than £88,000. The alleged liability arose from an overdrawn director’s loan account and a potential misfeasance claim. The liquidators accused our client of using company sale proceeds to fund a personal divorce settlement. In reality, the sale had been conducted by another director, and our client had acted honestly and reasonably throughout, relying on professional advice.
How We Helped
We immediately contacted the liquidators’ solicitors to secure an extension to the response deadline. This allowed us to prepare a detailed defence of our client’s position. Our letter of response showed that the supposed loans were legitimate dividend payments and that any liability for the asset sale rested with the other director. We also emphasised the practical and commercial advantages of settlement, given our client’s financial circumstances.
The Outcome
Our strategic approach led to a significant reduction of the claim to roughly one quarter of its original value. The liquidators agreed to extended payment terms of over a year, avoiding costly litigation and further financial strain. The matter was resolved swiftly and pragmatically, preserving our client’s position and providing closure after a difficult period.
I engaged with Francis, Wilks & Jones, for assistance in resolving specific legal issues. From start to finish, they were extremely helpful and provided a thoroughly efficient and professional service, guiding me through each step until the matter was finally resolved. Thank you and special thanks to Bradley Hopkinson, who was instrumental in supporting me throughout.
A client we supported through insolvency issues
