Home
|
All materials published and promoted by L Smith, PO Box 1109, London N4 2UU
|
|
First Solution: Liquidator appointed to recover assets and find out where the money has gone |
First solution creditors expressed their anger at the first official creditors’ meeting called by the Official Receiver this morning.
The Official Receiver, Paul Titherington, told the meeting that there were virtually no assets in the company at the moment but that some agents and the directors had promised to donate up to £415,000 into two trust funds over the next two years. This money would be distributed at the agents’ and directors’ discretion.
The Official Receiver admitted that some creditors would get all their money back and some none of their money. The injustice of this scheme was the major discussion issue in the meeting. Many creditors were of the opinion that this proposal was completely unfair and could not understand why it had been agreed to.
On the positive side, Mr Titherington said he believed there were further assets recoverable and the agreement to donate money, legally enforceable after two years by the Official Receiver, would not compromise action against the directors if the evidence warranted it.
The creditors present, representing over £400,000 in combined debt value, voted to appoint two liquidators from the company Tenon Recovery. This is a company with a reputation for pursuing assets very vigorously and have an incentive to do so as they won’t be paid otherwise.
It was clear from the meeting that little has been done to investigate this company since it ceased trading at the end of June, some six months ago. However, that investigation, both by the official liquidators and the Official Receiver, would now proceed from the beginning of the New Year.
The liquidators appointed by the creditors are expecting to make their first report to the creditors’ committee, also elected at the meeting, in three months time. They are not counting chickens but they do expect to recover considerable assets, although no-one can currently put a date on when creditors will get any repayment.
|
|
