Have You Been Contacted By An Insolvency Practitioner?
Is your business in a formal insolvency process and is the insolvency practitioner pursuing you for any claim under the Insolvency Act? An insolvency practitioner appointed over your business is required by law not only to investigate the affairs of the business but also the conduct of the directors. These can lead to an IP bringing a variety of claims against the directors such as:
- Wrongful trading / trading whilst insolvent
- Challenging transactions at an undervalue
- Trading under a prohibited trading name
- Preference payments
You may also be a creditor of a company which has entered into insolvency proceedings, an employee, a director of a company which is already subject to such proceedings, a shareholder or a third party which had dealings with a company pre-insolvency. Francis Wilks and Jones can assist in dealing with such correspondence and aim to minimise any exposure you have and maximise your interests in insolvency. This work includes the following:
- Assisting and advising on proxy and proof of debt forms received in respect of a proposed liquidation of a company and advising on methods of maximising your interests as a creditor.
- Assisting with proposal of a different Insolvency Practitioner to act as liquidator, one which would act more in your interests.
- Assisting with maximising your interest above other creditors, in terms of advising on and dealing with fixed or floating securities, recovering goods supplied, exercising liens over company property, claims for set-off, recovering property where the company is a tenant, protecting landlords from liabilities (e.g. rates), claiming as a preferential creditor in a liquidation or administration and claims for immediate payment from the Redundancy Payments Service.
- Negotiating payments of rent by administrator/liquidator and advising on landlord’s powers in such circumstances.
- Advising on claims by liquidators or administrators for assets either stated to be owned by the company (see previous point) or in respect of pre-insolvency transactions that you or your company was a party to.