Verisona Law took over the representation of the liquidator in this complex matter from another firm of solicitors.
The liquidator’s claim was for recovery of substantial sums arising from alleged antecedent transactions being misfeasance/breach of fiduciary duty/transactions at an undervalue/preference on the part of the directors and a company they controlled. The allegations centred around the transfer of the business, its assets and certain valuable contracts to this other company some 18 months before commencement of the winding up.
Having reviewed the liquidators analysis and the relevant documentation we interviewed the directors and satisfied ourselves that there were good prospects of successfully pursuing the identified causes and of making a recovery. Consequently we entered into a conditional fee agreement to represent the liquidator in Court proceedings.
Proceedings were subsequently issued against the directors and their company. However, after service of the proceedings the parties agreed to meet to investigate the prospects of settlement. An all-day negotiation resulted in a successful settlement with the directors and their company agreeing to pay cash and withdraw certain claims in the liquidation resulting in approximately £1 million being made available to creditors.