Creditors’ Voluntary Liquidation

Quantuma oversee a holiday park liquidation.

Overview:

  • The company was a holiday park owner with parks in North of England and Scotland
  • The company had an overdraft facility and interest rate hedging products with bank
  • The bank wished to exit it’s banking relationship which led to the sale of two parks and ultimately administration with a “big four” firm. The sale of the third and final park was completed by the Administrator
  • Creditors voted to replace the Administrator with an alternative liquidator in order to bring claims for redress and consequential losses due to the alleged mis-selling of the hedging products and other actions by the bank
  • Indebtedness – Company funded by clearing bank

Outcome:

  • Quantuma was brought in to replace the Liquidator and take up the claim given their partners’ experience in complex and contentious litigation as the incumbent Liquidator began to stall
  • Quantuma has progressed a claim against the Bank and arranged for it to be fully funded and backed by ATE insurance
  • Particulars of Claim have been filed, claiming in excess of £15m
  • An expert witness has been instructed following a thorough tender process to assess the strength of the claim and to assess the quantum of consequential losses
  • The bank has been encouraged to meet on a ‘without prejudice’ basis.  Their original redress offer has increased ten-fold to a seven-figure sum but the Liquidator continues to push for a substantially improved settlement figure
  • The claim is on-going but is now fully funded and backed by ATE insurance
  • Efforts to reach an out-of-Court settlement continue

 

For more information on Liquidations, please click here