Administration
Insolvency Practitioners’ Campaign against Energy Firms and Suppliers is Pointless
Britain’s leading professional association for insolvency and business recovery specialists has launched an astonishing attack on suppliers who raise prices or stop serving companies that have fallen into insolvent administration. According to R3, debt-chasing suppliers such as utility companies are responsible for 14% of liquidations and the rapid increase in pre-pack administrations, in which a…
Read MoreSports Celebrities Snookered by Management Firm Liquidation
The liquidation of a management firm whose clients included sports stars such Ronnie O’Sullivan, Stephen Hendry and Olympic gold-winning cyclist Sir Chris Hoy is likely to set a lengthy court battle in motion. According to the Daily Mail, several of 110 Sport Management (110SM)‘s former clients are preparing to launch compensation claims for outstanding payments against…
Read MoreJohnson Matthey Bank Bailout Fraudster Jailed After 25 Years
A fraudster linked to the spectacular collapse of Johnson Matthey Bank (JMB) has been jailed in London for 16 months – more than 25 years after his crimes were committed. Prosecutors were unable to bring proceedings against Vasant Advani, 67, after he left the Capital for West Africa in 1986.
Read MoreOffice of Fair Trading’s Insolvency Recommendations are Long Overdue
Last month, the Insolvency Service released a review paper on the regulation of insolvency practitioners (IPs) and asked the public for feedback. The consultation, which can be read here, follows an Office of Fair Trading (OFT) investigation into corporate insolvency and practitioner fees. The investigation found inconsistencies in the way complaints about IPs were handled…
Read MoreTop UK Director Sir Clive Thompson Facing Disqualification Proceedings
The Insolvency Service (IS) is to launch disqualification proceedings against one of Britain’s leading businessmen, Sir Clive Thompson, over his role in the failure of Christmas savings club Farepack, according to the Daily Mail newspaper. More than 116,000 people lost a total of £40m when Farepack collapsed in 2006 – after lending around £35m to…
Read MorePremier League and HMRC Court Battle Set for 15 February
Next month, HMRC and the Football Association Premier League will battle in court over the taxman’s claim that the ‘football creditor rule’ is unlawful. Under the football creditor rule, when a club enters administration creditors such as players and managers are paid in full, whilst any remaining money is divided between unsecured creditors including HMRC. Football as…
Read MoreRemedies for Struggling Directors: CVAs and Renegotiating with Creditors
Company directors experiencing financial difficulties often consider terminating agreements and contracts to reduce the burden of their debts. A director in this position must avoid delaying decisions and rectify the situation as soon as possible; otherwise the business will experience a rapid decline in trade and become insolvent. Reducing staff and rented equipment will lower costs,…
Read MoreSection 127 of the Insolvency Act: Stop Spending If You Receive a Winding Up Petition
If you’re a business owner and expecting difficult financial times ahead, now’s the time to educate yourself on insolvency legislation to ensure you don’t become the subject of litigation. A record number of winding up petitions will be served on ailing businesses in the coming year, but most of their recipients – company directors –…
Read MoreSupermarkets Beating Pubs and Bars in the UK Alcohol War
Small and independent alcohol retailers should be concerned by a new study which found the number of failing bar and pub companies has risen by over 30 per cent. According to accountancy firm Wilkins Kennedy, 130 bar and pub companies went bust during the third quarter of 2010, compared with 99 during the same period…
Read MoreCreditors Voluntary Liquidations Will Be Popular in 2011
Thousands of struggling company owners will voluntarily close their businesses this year, and most of those that do will use a Creditors Voluntary Liquidation (CVL) process. A CVL is perhaps more popular than a Compulsory Liquidation as it allows directors to put a company into liquidation with their shareholders’ approval and permission from creditors. If…
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