Defending Director from claim following liquidation

Verisona Law was instructed to advise on the prospects of successfully defending the claims being made by the joint liquidators based upon various breaches of the Insolvency Act 1986, particularly wrongful trading for which £993,000 was sought from our client, a former director

Following a detailed review of the company’s trading history and its finances, Verisona Law instructed an independent insolvency practitioner to provide expert advice.  The combination of his opinion and the legal arguments put to the liquidators/their solicitors eventually resulted in them being persuaded to accept that it was most unlikely that they would be able to prove that the directors’ delay in calling a meeting of creditors had worsened the company’s financial position.  Consequently the liquidators agreed to withdraw their claim on payment of a nominal sum.