We were approached by a liquidator about a potential unlawful dividend claim with limited time before the relevant limitation period expired. Within that time we reviewed the case, made an offer to purchase the claim and had issued proceedings.
We conducted a thorough investigatory process, which not only served to substantiate the unlawful dividend claim – but also identified serious wrongdoing in the form of fraudulent conduct by the former directors of the company.
It’s often thought that ‘smoking guns’ are a cliché – but in this case our internal team working alongside the liquidators found precisely that: a document proving that the liquidators had been provided with accounts which had been doctored ex-post facto. The document enabled us to re-perform the company’s audit and prove that certain documents were not contemporaneous.
Our analysis proved instrumental in securing a multi-million-pound settlement at mediation within a year of the original assignment. This settlement increased the dividend available to unsecured creditors by 20 times the originally anticipated level.
Our analysis proved instrumental in securing a multi-million-pound settlement at mediation within a year of the original assignment. This settlement increased the dividend available to unsecured creditors by 20 times the originally anticipated level.
H&J purchased a claim against four defendants (A & B and X & Y) who were the former shareholders and directors of a company that had been placed into liquidation. The investigatory work of the insolvency practitioner revealed that some £1.6m had been taken out of the company without clear justification and which left very significant creditors outstanding.
We retained the services of the incumbent solicitors appointed by the insolvency practitioners from whom we purchased the claim. They identified significant property interests held by the defendants which had been purchased using company funds. X&Y initially denied the claims brought but subsequently settled their claim by returning the unencumbered property to the company – which we sold via a local agent to achieve a return for creditors.
A&B proceeded to sell their largest property interest – to do so they both lied to their solicitors and breached undertakings. Upon discovery (some 24 hours later) we obtained a freezing injunction against A&B which was served on their banks and solicitors.
A&B left the country, lied to the court about their assets and moved money across their family network to avoid the freezing order. H&J served criminal proceedings for contempt of court out of the jurisdiction and the two defendants were found guilty.
H&J at the same time pursued a claim pursuant to section 423 of the Insolvency Act 1986 – claiming that the transaction by which A&B had sold their property was a transaction to defraud creditors. We reached settlement with the purchaser of the property resulting in a further return for creditors. A&B are now bankrupt and hold criminal records. We developed a strong working relationship with the incumbent solicitors on this case and have proceeded to instruct them on several new cases since.
The liquidators of an engineering company identified a potential breach of contract claim worth up to £50,000. The claim was complicated and relied heavily on expert evidence. The liquidators had therefore intended to drop the claim as the costs of running it were deemed to be prohibitive and disproportionate. Instead, we purchased the claim for a nominal sum but on the basis that we would share the proceeds of any successful outcome with the insolvent estate.
The insolvent company was engaged in the supply and installation of plumbing, heating, cooling and ventilation systems and engaged a sub-contractor to provide certain technical services in connection with a project. The services were not provided to the standards specified in the contract and caused certain components to fail.
Upon assignment H&J invested time and resource in developing the case and identified that the loss and damage suffered by the company was in fact greater than previously anticipated and totalled approximately £200,000.
H&J managed to negotiate a settlement of £180,000 plus costs - enabling a substantially increased returns for creditors.
The liquidators had intended to drop the claim as the costs of running it were deemed to be prohibitive and disproportionate. Instead, we purchased the claim... our in-house team invested time and resource in developing the case... and managed to negotiate a settlement [which] substantially increased returns for creditors.
A director of an insolvent company had removed hundreds of thousands in unapproved expenses from the company – while leaving around 30 employees to lose their jobs.
H&J purchased the claim against the director outright as the appointed insolvency practitioner was keen to dispose of the claim in its entirety; as the insolvency was due to be closed and the insolvency practitioner was keen to avoid legal costs eating into recoveries.
After a detailed investigation, we identified that the director had not in fact incurred the vast majority of the expenses he had claimed. In particular, it appeared he had fraudulently been claiming the costs of first-class travel for a large number of journeys when, in fact, he had travelled in standard class or, in some instances, not at all.
H&J brought a claim for repayment of these sums as an outstanding director’s loan. H&J successfully obtained judgment and an order for indemnity costs following a one-and-a-half-day trial.
H&J purchased a claim against two directors who had purchased the entire share capital of a subsidiary of an insolvent company. The directors claimed that they had paid approximately £110,000 for the shares – which had been purchased by the insolvent company a year earlier for £150,000.
The form of consideration allegedly provided was complex and the claim appeared to hold relatively low value (of up to £40,000 – being the difference between the two purchase prices). The liquidators had therefore resolved that they were unwilling to bear the cost and risk of taking the claim forward.
H&J purchased the claim and committed resource into detailed forensic investigatory work and pre-action correspondence with the directors. Investigations identified that the directors had fabricated certain documents submitted to the liquidators in an attempt to substantiate their claim to have paid £110,000 for the shares. They had, in fact, paid nothing!
H&J asserted claims in fraud and produced compelling evidence – including computer forensic analysis of the metadata contained within certain electronic documents. Within nine months of H&J’s assignment the defendants settled following mediation – resulting in payment of almost the entire value of the claim.
Our in-house team conducted detailed forensic investigatory work and engaged in pre-action correspondence with the directors. Our investigations identified that the directors had fabricated certain documents submitted to the liquidators in an attempt to substantiate their claim to have paid £110,000 for the shares. They had, in fact, paid nothing!
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