Why the client needed our help
We were instructed by an individual who had previously acted as a director of a company that entered Creditors’ Voluntary Liquidation (CVL). The liquidator was pursuing the former director for payments made to him during his tenure, which had been recorded to his director’s loan account (DLA). Faced with the prospect of a substantial financial claim, as well as the risk of escalating legal costs should the matter proceed to trial, the client sought our advice on the strength of the claim and the best way to resolve the matter commercially and efficiently.
How we helped
We conducted a detailed review of the liquidator’s claim and advised the client on its merits, identifying key areas for challenge and negotiation. Working closely with the client, we developed a strategy aimed at achieving a fair and cost-effective resolution without the need for protracted litigation. We engaged in constructive negotiations with the liquidator’s representatives, managing correspondence and protecting the client’s position throughout.
The outcome
Within three months of being instructed, we successfully negotiated a favourable settlement for the client, securing a 60% reduction on the claim value (excluding interest and costs, which would have accrued had the matter proceeded to trial). The client’s primary objective — to reach a fair settlement swiftly and avoid significant legal costs — was achieved in full, with a signed settlement agreement finalised promptly.
