Insolvency Management Services
There are often times when creditors or directors are subject to demands from a liquidator for a voidable preference or an overdrawn current account and directors duty breaches. Principle Insolvency can help you in the following insolvency areas:
– Insolvent Transactions
– Directors Duty Breaches
– Overdrawn Current Accounts
– PPSR Priorities and Enforceability
We specialise in Insolvency Management, having a depth of knowledge spanning years managing insolvency cases with successful outcomes for secured creditors and the directors of the insolvent business. We are proud to be the insolvency experts that people come to for advice and performance based around integrity and the best possible outcomes.
Insolvent Transactions
Insolvent Transactions, also known as Voidable Transactions is when a creditor has received payments over and above what they would have normally received in a liquidation which creates a “preference” to that creditor. There are a number of defenses that can applied when defending a insolvent transaction claim from a liquidator. However, these defenses only apply if they are raised within the required time frame from when an insolvent transaction notice is served on a creditor. If you need assistance to defend an insolvent transaction claim from a liquidator, contact Principle Insolvency to discuss how we can help.
Overdrawn Current Account
Overdrawn current accounts are usually pursued by a liquidator of a company against a shareholder that has typically received money from the company which has not been declared as income or salary to that specific shareholder. A current account is legally treated as a “loan” to the shareholder and on liquidation if it is overdrawn. The liquidator is likely going to demand that it is repaid back to the company. In this circumstance a shareholder seldom has a defense or excuse to this and the amount must be repaid or the liquidator may obtain and enforce the judgment which may result in bankruptcy for the shareholder. It is important top get competent advice if you are faced with a liquidator pursuing you for an overdrawn current account. If you need assistance to negotiate an overdrawn current account claim from a liquidator, contact us to discuss how Principle Insolvency can help.
Directors Duty Breaches
A breach of directors duties in a company can have serious consequences such as a director becoming personally liable for the company’s debt and in the worst case, it could even lead to criminal sanctions. Directors duties are mainly covered in sections 131, 133, 134, 135, 136 and 137 of the Companies Act 1993. Depending on the circumstances of the situation, a director may also have defenses to any alleged breach. Consulting with a professional can help a director avoid or mitigate negative consequences. If you are being pursued for an alleged breach of your directors duties, contact Principle Insolvency to discuss how we can help.
PPSR Priorities and Enforceability
The Personal Property Securities Register (PPSR) enables a creditor to secure their position and obtain a priority over other creditors. Relying on a retention of title is no longer adequate when conducting business. Businesses that secure their position generally have more leverage over their customers and often get paid faster. Principle Insolvency can assist you in securing your position when supplying your goods or services to your customers. If you already have a process in place, we can review your existing processes to ensure they are robust and enforceable in the event it is necessary.