18 June 2018: We have previously reported on BRI’s success in providing returns to creditors in several of our insolvent liquidations. Fortunately we are again in a position to share the good news that on three recent insolvent liquidations, we have made returns to unsecured creditors, including a distribution to preferential creditors in one case.
Whilst each of the three liquidations was unique, the key to maximising the realisations in each matter involved early engagement with the directors to understand the nature of the business and assets, as well as the directors’ own future plans. In one case, the directors did not wish to continue in business and were seeking an orderly winding down of the business and a return to employment. In another case, the director had a strong desire to continue trading. The third case involved the closure of a UK based subsidiary of a much larger European based company.
Across the three cases returns of 5p, 25p and 50p in the £, respectively, have been made to unsecured creditors, along with a return of 100p in the £ to preferential creditors in one instance.
In each case, the key to increasing the return to creditors was the strategy we employed well before the formal date of liquidation. As is always the approach here at BRI, in order to achieve the right outcome we were prepared to take the time to understand the situation that the company and its directors find themselves in, before the clock starts ticking. We find that this approach invariably results in the right outcome for all stakeholders.
Should you or your clients have any insolvency related queries, including how to manage the winding down of a company, please contact one our experienced management team on 01908 317 387.