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A gives Bro co from A co. B's co folds & A dies

Funds were written off between the brothers, A's company going into CVA - is there any recourse v B?

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Brother A refused to sell property which would have saved brothers company, but instead offers to give the money to pay the debt. A pays debt to B's solicitor from A's company. Unfortunately B's company does not survive and folds. Over the next year, understanding is reached to write off debt between the brothers. Sadly A dies, and A's company goes into CVA. Can the administrators approach B for any sort of repayment, or should A's accountant write off any debts?

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By Truecon
17th Jun 2021 17:47

Where does C come into all of this though?

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By johngroganjga
17th Jun 2021 17:59

Who was/is the borrower? B or his company? Who was/is the lender? A or his company?

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Replying to johngroganjga:
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By Hugo Fair
17th Jun 2021 18:29

And what does "understanding is reached to write off debt" actually mean?
Fundamentally, what documents exist covering each of the stages you've outlined (and what do they say)?

For the avoidance of doubt, these are not questions to which I want the answers - but they (along with John's) need to be addressed by OP.
I'd prefer to invest in a new retail outlet for snowballs on the main High Street in hell, rather than waiting here for a comprehensive & reliable answer to OP's convoluted scenario.

In the immortal words of Johnny Nash: "There are more questions than answers"!

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Replying to Hugo Fair:
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By frankfx
18th Jun 2021 17:57

Quote:

And what does "understanding is reached to write off debt" actually mean?
Fundamentally, what documents exist covering each of the stages you've outlined (and what do they say)?

For the avoidance of doubt, these are not questions to which I want the answers - but they (along with John's) need to be addressed by OP.
I'd prefer to invest in a new retail outlet for snowballs on the main High Street in hell, rather than waiting here for a comprehensive & reliable answer to OP's convoluted scenario.

In the immortal words of Johnny Nash: "There are more questions than answers"!

Douglas Adams : the answer is 42, after Deep Thought.

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Replying to johngroganjga:
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By Keith Buchan
17th Jun 2021 19:50

1st Problem - no real borrowing, as B had sold one of their joint properties as agreed, and at point of exchange A pulled out, and offered to pay B's company debt in order to keep the property in the family. However because of his delay, legal action ensued, and legal costs incurred which doubled the amount. A voluntarily stated he'd "take the hit" bon the additions above the initial debt, and paid B's company solicitor directly from his company without B's knowledge. No thing in writing

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Replying to Keith Buchan:
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By Paul Crowley
17th Jun 2021 21:25

That sounds like A bought the other half of the property, using company money.
This is not for A Ltd accountant to decide.
But reality is nobody knows what really happened.
The facts would appear to indicate A gave some money to a solicitor from his company in preference to signing the property sale documents.
A therefore appears to have borrowed money from his own company and given it to a solicitor.

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By Paul Crowley
17th Jun 2021 18:52

Presumably A and B did not do what A and B agreed
That is of course to the best belief of B

IP of A Ltd would be incompetent if not looking for the money owed to A Ltd as he gets the money and refund of S455
There might even be some surplus to play with.

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By Truthsayer
17th Jun 2021 21:09

This is as clear as mud. I give up.

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RLI
By lionofludesch
18th Jun 2021 08:52

Quote:

Brother A refused to sell property which would have saved brothers company, but instead offers to give the money to pay the debt............... Can the administrators approach B for any sort of repayment, or should A's accountant write off any debts?

What debts ? Who gave the money to whom ? If it was a gift, there is no debt.

Come back with some cogent facts.

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Lisa Thomas
By Lisa Thomas
18th Jun 2021 09:51

FYI There is no Administrator or investigation in a CVA, however any transactions that a Liquidator might look to overturn should be disclosed in the proposals, of which this potential issue may be one.

Failure to do so might result in a false representation/omission/fraudulent act, which could unravel the CVA.

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By Martin B
18th Jun 2021 16:06

What is the question? This is clear as mud.

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Replying to Martin B:
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By Keith Buchan
18th Jun 2021 16:28

Sorry - it is complicated. Two brothers - very close, & shared 2 x inherited properties. Both ran succesful business', and B supplied goods and services to A for several years either free or at cost.
B ran into some financial difficulties, easily overcome with the sale of one of the properties as agreed with A
1st Problem - no real borrowing, as B had sold one of their joint properties as agreed, and at point of exchange A pulled out, and offered to pay B's company debt in order to keep the property in the family. However because of his delay, legal action ensued, and legal costs incurred which doubled the amount.
A voluntarily stated he'd "take the hit" on the additions above the initial debt, and paid B's company solicitor directly from his company without B's knowledge.
B however lost the main client, as the delay had caused his company to be struck off - although subsequently reinstated. A admitted the delay was his fault and had caused the loss of B's client and business. A told B there was nothing to repay.
Tragically A died a little over a year later. Now some 3 years after A's death, the company accountant has indicated to B that there is the full debt outstanding in the accounts - though nothing has ever been written? B needs advice on how to move forward.

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Replying to Keith Buchan:
RLI
By lionofludesch
18th Jun 2021 16:46

Your problem is evidence.

Or rather, the lack of it.

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