Strong Roofing Solutions Liquidation Case Study
|Business description||Roofing Company|
|Business Property||Based at director’s home|
|Dept of Employment||£4,537.11|
The Company’s principal activity was that of roofing and maintenance. The Company began trading profitably despite starting the business shortly before the recession began to affect the building trade.
The directors company worked as a subcontractor for a larger firm which itself had did not gotten paid for a substantial contract forcing it into liquidation shortly afterwards. This left the director’s business with £20k of unpaid invoices. As a result of this, the directors struggled to meet creditors’ demands for payment.
The company suffered further losses of £7,000 & £16,000 when other companies it worked for queried final invoices. The director’s initially instructed solicitors although the claims were dropped due to escalating solicitor fees fighting a case that could have been potentially unwindable due to insufficient paperwork being held by the director to prove the debts. The company’s debt increased to an unmanageable level, and the problems were only compounded by the inability to secure any further major contracts.
The Company sought professional advice by contacting Wilson Field. The company had book debts but as these represented construction debts and the realisations were uncertain the initial liquidation fees (known as a statement of affairs fee) had to be paid for from the director’s personal funds. An Insolvency Practitioner at Wilson field got officially appointed as liquidators.
- The director was able to move on and secure employment elsewhere in the knowledge that the affairs of the company were taken care of.
- Unsecured company debts of £98,857.66 were written off.
- After an investigation of the conduct of the director, the Insolvency Practitioner concluded there was no personal liability for directors.
- Creditors were contacted by Wilson Field on initial instruction by the directors meaning all creditor pressure stopped and phone calls and letters got forwarded to us. This relieved pressure from the director immediately, giving him some breathing space in which to consider what to do next.