Background
Tesla Energy Services Ltd are a business traded as a provider of insulation services under the Government’s “Green Deal” schemes.
Issue
The company directors had withdrawn significant sums of money from the company in previous years and there were clawbacks made by Npower valuing in-excess of half a million pounds which had resulted in a previous ADM (Administration), who then proposed a CVA (Company Voluntary Arrangement) for the business.
Prior to our involvement an Administrator had been appointed and whilst trading over a two-month period alone, had amassed a trading loss of £450, 000 which included not paying any post-ADM PAYE or VAT.
Outcome
We were appointed with another IP as Joint Liquidators via very unhappy third-party creditors with a remit to investigate the involvement of the ADM and the antecedent transactions, as well as challenging the original CVA as fiction.
Through investigation, including collecting all email and various other data on day one of our appointment, the investigation resulted in damning evidence against all parties.
As Joint Liquidators we successfully sued the previous IP for negligence and ended up with a settlement (via insurers) of £400,000. The company directors were also pursued for overdrawn loan accounts recovering £250,000.
We have proceeded with litigation against one of the directors for misfeasance with a claim exceeding £2M (ongoing). To date, we have successfully recovered post-ADM trading liabilities and £200,000 of Para 99 liabilities have been settled. Additionally, over £300,000 has been returned so far to post-ADM suppliers and pre-ADM creditors (preferential claims paid in full), along with first dividend to unsecured creditors. There is also potential for further dividends.
