Acting for a Director against an Insolvency Practitioner, resisting claims alleging fraudulent trading (Section 213 Insolvency Act 1986), Preference claims (Section 239 Insolvency Act 1986) and Misfeasance claims (Section 212 Insolvency Act 1986) where £1.6 million was sought from the Director.
The claims against the Director appeared well founded. The Director had the ability to pay the full amount owed as the Insolvency Practitioner knew full well.
NDP settled the claims for 20% of the sums claimed with the Director having 2 years to pay that amount.
That settlement avoided the huge risk, cost and uncertainty that would have followed from the litigation process.