Dodgy directors trying to liquidate their company.

We suspected they couldn't pay their debts and they invented a dispute to avoid being served.

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Hi,

First post so I would like to thank anybody who can point me in the right direction.

We are owed £75k from a company, some of the invoices are over a year old now.  During that time we must have had about 30 promises to pay in writing.  Some verbal as well but they weren't recorded.  After taking advice, we were told to serve them with a statutory demand and issue winding up proceedings.

When we told them we were going to do this, they said the debt is formally disputed.  Their reasoning was laughable, and we pointed out that they'd had a recent CCJ because clearly they couldn't pay their debts.

They made us fill in a massive spreadsheet of 'queries', but even on their own spreadsheet, it acknowledged 95% of the debt.  It took us a couple of weeks to go through everything but we emailed it anyway.  Then, after not hearing from them for a few days we learned that they had appointed their own Administrators.

We have been advised to serve the demand in any case, and try to proceed with our claim.  If it is succesful, does anybody know of any insolvency practitioners who would like to try and take the claim on?

Forgive me if the terminology is off, I am learning as I go along,

Many thanks.

Replies (9)

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By Ruddles
30th Nov 2023 13:43

If the company has entered Administration there is probably not a lot that you can do other than, as suggested, file your claim, stand back and keep your fingers crossed.

There are procedures to remove/replace an Administrator - whether that would be appropriate in your circumstances I don't know.

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By [email protected]
30th Nov 2023 13:52

Thanks for that.

We definitely don't want to let them get away with it, so any pointers about removing an Administrator would be fantastic. If we know in advance we can start preparing for the worst.

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Replying to [email protected]:
By Ruddles
30th Nov 2023 14:11

bowlandwalks-AT-gmail.com wrote:
any pointers about removing an Administrator would be fantastic.

For starters - Google

If you want to look at the legislation it is IA 1986 Sch B1, paras 87 onwards

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By Tax is always taxing
30th Nov 2023 14:30

What makes you think that removing the Administrator would lead to a better outcome for you?
Safe to assume you can start preparing for the worst now.

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Replying to Tax is always taxing:
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By [email protected]
01st Dec 2023 15:58

Ultimately, if the company liquidates with nothing, we want to be able to go after the directors.

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By Leywood
01st Dec 2023 17:09

What makes you think you can go after the directors?

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By FactChecker
01st Dec 2023 18:55

Ultimately, the takeaway for your business is to operate much tighter credit control in future ... "some of the invoices are over a year old now" tells a story.

That's not meant to be unhelpful, but practical. Based on what you've said you should plan on the basis that the money will never appear (any that does is then a nice surprise).

Your debtor sounds well-versed in their behaviour and has the motivation and time to keep 'playing the game' - including protection of their personal assets - so you could end up spending an inordinate amount of time/money trying to right the wrong done to you, but without any certainty of eventual 'justice'.

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By Calculatorboy
01st Dec 2023 23:41

You can still issue statutory demand and plough ahead , if they dispute, then argue the toss in court, its called brinkmanship , they will probably be on the backfoot, its a game of chance

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Lisa Thomas
By Lisa Thomas - Insolvency Practitioner
06th Dec 2023 12:19

Is the Company actually now in Administration? If so, there is nothing you can now do to enforce your CCJ. If a notice of intention has been filed then you also cannot enforce your CCJ.

Instead, you need to file your claim with the Administrators as an unsecured creditor.

As regards what control/say you have in removing the Administrators etc, you will be given the opportunity to vote on their proposals, which includes accepting their appointment, or nominating another IP, approving their fee basis and/or appointing and joining a committee to approve their fees.

Having said all that, whether you have any swaying power depends on the level of debt and how the other creditors vote.

Hope that helps.

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