A company is insolvent when it can not pay its debts as and when they fall due. One of the key indicators of this is a lack of cash flow and resources to physically pay on the due date.
Evans Lawyers primarily acts for creditors who have been ‘burnt’ by companies entering voluntary administration and subsequently liquidation. We have conducted a number of matters where we have undertaken a forensic analysis and tracing of funds from companies which have either unlawfully divested or diverted company assets to third parties in most instances to related parties or established other entities which are commonly known as ‘phoenix’.
Generally liquidators (in the absence of creditor funding) simply do not have the resources to undertake this type of work to ultimately pursue company Directors personally with a view to recovering assets. Evans Lawyers, in appropriate circumstances, can act for ‘a group’ of creditors who pool their resources to have this work undertaken thereby significantly reducing the cost for each creditor to pursue company Directors.
If you have suffered loss to your business as a result of the collapse of another and suspect that the Director/s have engaged in questionable conduct such as trading whilst insolvent, moving or selling assets, or have established or are involved with another similar business shortly after the demise of their previous business or company contact us for a no obligation discussion as to your potential remedies.