Creditor Representation

/Creditor Representation
Creditor Representation2017-11-16T18:05:25+00:00

Project Description

CREDITOR REPRESENTATION

case study

BACKGROUND

A trade supplier in the cladding and facia industry had experienced difficulties in obtaining payment from one of its customers. The relationship was once fruitful and profitable. However, recent events had fractured the relationship, and the supplier was owed a six-figure sum.

The supplier received notice of a meeting of creditors which had been issued with the assistance of another Insolvency Practitioner. Upon the receipt of this notice, the supplier contacted Poppleton & Appleby to assist in obtaining further information and representing them in the insolvency proceedings.

DETAILS
  • Poppleton & Appleby assisted the supplier in assessing his claim and with the completion of claim documentation.
  • Poppleton & Appleby contacted the Insolvency Practitioner concerned and requested further information regarding the potential insolvency.
  • Dissatisfied with the situation, the supplier instructed Poppleton & Appleby to represent them at the meeting of creditors.
  • Poppleton & Appleby attended the meeting of creditors with the principal director of the supplier concerned.
  • As it was revealed that the supplier was, in fact, the largest creditor, he had sufficient voting rights therefore to instruct his preferred Insolvency Practitioner. The Partners at Poppleton & Appleby were therefore appointed as Joint Liquidators of the subject company in place of the convening Insolvency Practitioners.
OUTCOME
  • Poppleton & Appleby recovered the Company’s records and were able to undertake a thorough investigation.
  • Areas were discovered where additional recoveries could be made for the estate for the benefit of creditors.
  • Ultimately as a result of these investigations, it is expected that there will be a substantially enhanced return to the unsecured creditors than first envisaged.