Case Study 4: Liquidation Advice
May last year I was giving a talk about company liquidation and company debts at the chamber of commerce, when Suzanne approached me at the end of my talk and asked if it were possible to give her about 20 minutes of my time regarding liquidation advice of her company.
Suzanne went on to explain that she had been to see three insolvency practitioners one recommended by her bank manager and one by her accountants and another recommended by a friend, she was more confused after talking with the three than she was before she started digging in to and trying to understand company liquidation advice.
Suzanne company had been trading for nearly five years without any problems but her co-director had left the company and was holding Suzanne to ransom to buy out his shares for a stupid figure of £67,000 which was for 40% of his shares, but the company could not sustain that nor did it have that sort of cash about or assets that Suzanne could sell off to raise the money. So she was now seeking advice about company liquidation in order to resolve the situation with her co-director.
After further investigation it appeared that the company had no real assets and her creditors were but a few, all very sympathetic to Suzanne. The co-director was basing his value on the clientele base of the company. The majority of the clients had been brought on by Suzanne and were all happy to go with Suzanne if she up and left the company.
WE arranged a meeting with Suzanne a week later and created an exit strategy from her company by forming a new company and any future orders that came in went in to new co and not old co. After six months the old company had no trading activity for at least 4 months and all the clients had switched over to Suzanne new company. The strategy we had devised and legal notices we had placed and notices served on the co-director left him with nothing at all but a dormant company with no value what so ever.
Two months later we appointed a liquidator to wind up the affairs of the old company up by means of a company liquidation without any problems from Suzanne’s former c- director. So if you need liquidation advice or any advice relating to company / business debts or insolvency issues, just pick up the phone and let’s have a chat to see how I can help you out, just like thousands of other people we have been helping just like Suzanne since 1989.