Creditor Services

Early Intervention


Problems arose when a business went into liquidation but neither secured or unsecured creditors were notified of the CVL process

Background

Creditors had lent money to the business within the last four months on the strength of management accounts showing £1.8 million of stock.

Issue

Problems arose when the business went into liquidation but neither secured or unsecured creditors were notified of the Creditors’ Voluntary Liquidation (CVL) process. 
A Notice of Deemed Consent accompanied a statement of affairs showing that the company had only £8,000 of assets remaining.

Outcome

Quantuma immediately objected to the process of deemed consent and contacted all creditors including secured parties. It was ascertained that the director was attempting to sell the business as a going concern outside of the process for £1 million.

We secured sufficient support from creditors to be appointed to act as liquidators to the company as well as the secured creditors being prepared to appoint us to act as administrators, we were able to negotiate with the proposed purchaser of the business on behalf of all creditor clients the settlement of all sums due under the agreements previously entered into.