Capital loss on shares - or not

"My client converted her directors loan account into Cumulative redeemable preference shares in 2002. The company was insolventent at the time.

The company has now gone into liquidation and my client has made a capital gain on another asset. I assume that the loss is allowable against the capital gain?

Does the fact that the shares were worthless at the time of subscription have any effect? (the conversion of the directors loan account into shares just about made the shareholders funds positive)"

When I first posted the above question ,the answer was a categoric - no capital gains loss as the shares were worthless when they were acquired.

This appears to be agreed with in the following article:

http://www.taxationweb.co.uk/forum/convert-directors-loan-into-share-capital-t30443.html

However, the article also refers to the following:

http://www.taxationweb.co.uk/tax-articles/capital-taxes/loans-and-capita...
which deals with the case of:

Fletcher v HMRC [2008] SpC 711

In the circumstances, please could I have opinions on whether there is a capital loss to set against the capital gain.