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Liquidation helps director retain control and maximise returns
A property developer was introduced to Kingsbridge by their solicitors having received the threat of a winding up petition from HM Revenue and Customs.
The Company had begun to experience cash flow problems due to a slump in the domestic housing market. Despite the director’s best efforts to agree time to pay, creditor action could not be held off.
The director consulted Kingsbridge who explained options available within the insolvency legislation. As the director represented 80% of creditors’ claims through his loans to the Company, Kingsbridge were able to implement a strategy to maximise returns both to him and unconnected creditors. This included the distribution of certain assets rather than cash to the director, as was his preference, which facilitated a speedy conclusion of the liquidation and prompt payment to unconnected creditors.
The director praised the team for “thinking outside of the box” and providing a sensible, commercial solution acceptable to all stakeholders.