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Insolvency Claim reduced, plus Director Disqualification and Compensation order avoided for relieved client

“Thank you, ND&P Solicitors, for your outstanding work and for making a positive difference in my life during a challenging time.”

We were recently instructed by a Director facing a an Insolvency Claim from a Liquidator of over £100,000, potential Director Disqualification proceedings and a possible Compensation Order for recovery of a Bounce Back Loan (BBL) of £50,000, after he placed his restaurant company into Creditors Voluntary Liquidation. This testimonial details the serious issues the director was facing, and how we were able negotiate the Liquidator Claim down to a sensible level, whilst convincing the Insolvency Service to drop its director disqualification investigation.

The problems the director was facing.

The Liquidator wrote to the Director challenging payments made to him by the Company in the year prior to it entering into liquidation. The Liquidator also sought to allege that the Company had misused a Bounce Back Loan (“BBL”) it obtained to assist it during the Covid-19 Pandemic. The Liquidator was seeking to bring an insolvency claim against the Director for sums in excess of £100,000 for breach of his duties as director (as contained in sections 171 to 177 of the Companies Act 2006), misfeasance pursuant to section 212 of the Insolvency Act 1986 and for preferential treatment pursuant to section 239 of the Insolvency Act 1986. The director was facing a serious issue.

NDP were instructed and worked quickly.

The Director instructed us, and we quickly put forward representations on behalf of the Director in response to the claims. Thereafter, we negotiated the matter of the Liquidator’s claim to a sensible commercial settlement that was workable for the Director.

However, the Director’s problems did not end there, as he subsequently received a letter from the Insolvency Service alleging that he overstated the Company’s turnover in breach of the BBL criteria and the £50,000 BBL obtained was not used for the benefit of the Company. The Insolvency Service also notified the Director that in the event of his disqualification they may look to seek a Compensation Order so as to look for recovery of the £50,000 BBL from him personally.

We set to work and shortly after submitting representations to the Insolvency Service on behalf of the Director, the Insolvency Service abandoned their investigation, and the case was quickly concluded. The client was relieved and delighted and provided the testimonial below, for which we are very grateful.

Testimonial from our client

“I am thrilled to write a positive review for ND&P Solicitors based on my recent experience with them in handling a misfeasance and director disqualification claim. From start to finish, the service I received was nothing short of outstanding, and I want to express my deep appreciation for Richard Shepherd, who served as my solicitor throughout the process.

First and foremost, I was incredibly impressed by the speed and professionalism with which ND&P Solicitors managed my case. Misfeasance and director disqualification claims can be complex and stressful, but ND&P Solicitors made the entire journey as smooth and efficient as possible. From our initial consultation to the final resolution, they consistently demonstrated a keen understanding of the legal intricacies involved in these matters.

Richard, in particular, deserves special recognition for his exceptional expertise and dedication. He not only possesses an in-depth knowledge of misfeasance and director disqualification claims but also has the ability to explain complex legal concepts in a way that is clear and easy to understand. Throughout the process, Richard maintained open and honest communication, keeping me informed every step of the way. His guidance and support were instrumental in helping me navigate the challenges of my case.

What truly sets ND&P Solicitors apart is their unwavering commitment to their clients. They took the time to listen to my concerns, address my questions, and provide personalized advice tailored to my specific situation. This level of attention and care made me feel valued and supported throughout the entire process, which was incredibly reassuring during a challenging time.

ND&P Solicitors not only excelled in their legal expertise but also in their ability to handle the human side of legal matters. They showed genuine empathy and understanding, recognizing the emotional toll that legal disputes can take on individuals. Their approach to client relationships is truly commendable and sets a high standard for the legal industry.

In conclusion, I wholeheartedly recommend ND&P Solicitors for their exceptional service in handling misfeasance and director disqualification claims. Their professionalism, speed, and commitment to their clients make them a top choice for anyone facing such legal challenges. My heartfelt thanks go out to Richard and the entire team at ND&P Solicitors for their dedication and expertise. They turned a difficult situation into a manageable one, and I am grateful for their support.

Thank you, ND&P Solicitors, for your outstanding work and for making a positive difference in my life during a challenging time.”

Contact us if you are facing a Liquidator’s Insolvency Claim and/or an Insolvency Service investigation for Director Disqualification.

We have a strong track record in delivering the results our clients need in these areas. Take a look at some of our other testimonials. Generally, the earlier we are instructed, the more we can do to help. Contact us or call us on 0121 200 7040 for an initial FREE of charge no obligation chat.