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Old 15-08-2016, 03:16 PM   #1
G_Daniels
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Default Liquidation - Fair Play?

Hi,

Just after some opinions (well to be honest itís just more of a rant to get it off my chest)....

In 2014 a company I use as a letting agent for my old house went into a 'voluntary arrangement' due to owing HMRC a lot of money. They were allowed to continue trading and nobody to my knowledge was notified.

Last Monday I received a letter stating they were now starting voluntary liquidation proceedings and a creditors meeting has been organised for this morning. I had to send in details of outstanding unpaid debt which amounts to 2 month rent (annoyingly they send me the rent 1 month in arrears, despite collecting it in advance and its usually a few days after they have received the next month rent when I get the previous month).

On investigation the reason that liquidation was started is due to them breaching one of the voluntary arrangement conditions. At the meeting we had to prise it out of the liquidator but it appears the breach is due to them increasing salaries.

There are only 4 staff 3 directors and one normal employee. 2 of the directors were appointed in 2013 (one being the wife of the main owner) and they both resigned as directors last month (but continued to work as non-directors). They have both now registered a new company at the existing premises doing the exact same thing.

At the meeting it was announced that there would be no funds available for unsecured creditors (like myself), and there is a potential buyer for the goodwill of the company that is likely to go ahead this afternoon. Although the liquidator hasn't said who it is, it doesn't take genius to realise it is probably the two resigned directors under their new company name. The liquidator also asked for our permission to allow the new buyer to take over our existing management contract which of course I declined.

Now I've already resigned myself to the fact there is no chance I will get any money back, but I am seriously pissed about the way it appears to have been done.

There does not seem to be any consequences for any of the directors, the report even shows redundancy and holiday pay as being one of the priority creditor debts to pay first. So effectively they all get a nice clean slate, paid holiday until the end of the year and then after that the liquidator and bank get their bit and no-one else gets a look in!

Anyone else been through anything similar?

Regards,

Graham
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Old 15-08-2016, 04:58 PM   #2
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So it seems that it is all legal and this practice is called a 'Pheonix company'...

http://www.companyrescue.co.uk/credi...hoenix-company

The joke is the new company name begins with the word 'Pheonix'!
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Old 15-08-2016, 05:09 PM   #3
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Quote:
Originally Posted by Graham_D View Post
So it seems that it is all legal and this practice is called a 'Pheonix company'...

http://www.companyrescue.co.uk/credi...hoenix-company

The joke is the new company name contains the word 'Pheonix'!
Sounds shitty.

Looking at Graham's link maybe there is a cause for concern here.

"Ensured the creditors interests are not compromised by investigating the conduct of the directors prior to the liquidation."

Are the liquidators able to confirm they have done this?

Personally, I've paid my rent to the landlord directly for every property I've rented. is there a reason you've not had this set-up?

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Old 15-08-2016, 05:19 PM   #4
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Sorry if my second post was confusing I am the same person as the OP just somehow seemed to have 2 accounts without realising (due to the password reset/security breach thing)!

They are just a management company, they deal with the collection of the rent and making sure all my obligations are met. Usually handy to have when a tenant owes money as they are probably less soft with the tenant than I would be on my own. So until now have always been glad to have them doing the rent collection etc.

Fortunately it will only 'feel' like one month loss of income as I will be getting the rent in advance straight from the tenant from now onwards rather than being about 35 days behind as previous!

I will question the liquidator to see if they are satisfied there has not been any misconduct, but knowing its a lost cause probably need to move on and forget.

Thanks,

Graham
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Old 16-08-2016, 05:06 PM   #5
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So today I find the old website now diverts to the new company setup by the old directors, same format, same properties, same phone number. Feeling very cheated!
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Old 10-09-2016, 09:42 PM   #6
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I would resign yourself to not getting the rent back and if you do, it will be a bonus.

Can you contact the tenant and get them to pay you directly?

I'd also check that the deposit has been protected as it would be you that would be liable if it hasn't.

Good luck.
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