Insolvancy advice

Insolvancy advice

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Operated a Limited company for a number of years which was reasonably successful, but which came to a natural end last October. Have subsequently paid up everything owed by the company from the company resources, except a small bank overdraft (£7k) which is personally guaranteed (and is not a problem) and the lease on the former company premises.

I have (without prejudice) offered the landlord 50% of the remaining lease (from personal funds) to release the company now from the 2 years outstanding, but they have refused and are pressing for liquidation. There is no personal guarantee in the lease.

Clearly, I want to be in control of this so I have appointed my own liquidator, but I really would rather “do a deal” and close the company down quietly.

Can anyone see any reasoning as to why the landlord wants a proper liquidation in which he will get nothing than a deal in which he will get 50%?

Concerned

Replies (5)

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By User deleted
20th May 2008 10:25

It would appear
that your landlord has insured the rent and can't claim unless the company is in a formal insolvency procedure.

I assume the lease is in the company name and you did not give personal gurantees?

If this is the case then the Liquidator will disclaim the lease on Form 4.53, which must be sent to court to be sealed, then sent to the landlord directly.

I wouldn't bother trying to do a deal, it will cost you unnecessarily.

How much have you paid your Liquidator? Is he formally appointed yet?

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By User deleted
19th May 2008 15:04

Insurance makes sense
... Hadn't thought of insurance, that makes sense. Thank you

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By PAULGACC
19th May 2008 14:19

Possible Insurance Claim
The Landlord may be insured against loss of rent and the policy may only pay out if certain criteria happen to the tennant. Therefore liquidation may give them grounds for a claim where purley cease to trade would not.

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By neileg
19th May 2008 11:27

Control?
Once a liquidator is appointed, they're in control.

The landlord may not understand the power of a liquidator to terminate a lease.

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By geoffwolf
19th May 2008 10:47

sublease
Were you unable to find any entity to assign the lease to or to sublet?t

By paying every other creditor in full you may have created a fraudulent preference and the landlord may therefore be quite in order to expect full fulfillment of the lease.

You would have been better off to negotiate with the landlord first before settling all the other debts

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