Compulsary Liquidation- Interview with OR

[Rosiebear3]

Compulsory Liquidation

I am due to attend a OR interview face to face next week. Any experience with this

£175k of debt to Creditors
80% of debt due to HMRC
Winding up petition issued, I was engaging with an IP to do a CVL and requested several adjournments and within days of completing CVL I was issued Compulsory on the 3rd hearing
I am very worried about this interview.. any tips?

 

[Lisa Thomas]

When you say you completed the CVL, do you mean it went into voluntary liquidation before it then went into compulsory Liquidation?

Have you mismanaged any of the company's money, or assets?

Your original IP should be able to give you some advice - best to be honest.

Watch my video here to see the types of investigation claims the liquidator will be investigating. Jump to about 14 minutes for the investigation stuff.

https://youtu.be/01lTdazWwTk?si=zATSoMJJ2SQmCsRF

 

[Rosiebear3]

Thank you that's very helpful

 

[UK Contractor Accountant]

Can't you vote to get the OR replaced with the original CVL liquidator?

 

[Rosiebear3]

Can't you vote to get the OR replaced with the original CVL liquidator?

How do i do that?

 

[UK Contractor Accountant]

How do i do that?

Court application I suspect.

AI Search
To replace the Official Receiver with a licensed insolvency practitioner in a compulsory liquidation, creditors or contributories can requisition a decision procedure or apply to the court. This allows them to appoint a CVL (Creditors' Voluntary Liquidation) liquidator, who is a licensed insolvency practitioner, to take over the liquidation process


IP's on this forum should be able to point you in the right direction.

@Lisa Thomas
@Elliot Green
@BusinessHelpl

 

[JEREMY HAWKE]

Question
What would happen if a person did not attend one of these OR interviews?

 

[Lisa Thomas]

Can't you vote to get the OR replaced with the original CVL liquidator?

Usually this is something the creditors would vote on.

The largest creditor will have the sway.

Unless the creditors are willing to get involved, you would need to be able to prove that the IP can do a better job than the O.R.

The O.R can farm the case out on a rota to IP's, but they tend to keep them inhouse nowadays, unless the case is complex, contentious, or there are statutory deadlines fast approaching that they might miss.

I'm surprised the original IP did not ensure the petition was withdrawn, or the hearing dismissed, before getting appointed....

 

[Lisa Thomas]

Question
What would happen if a person did not attend one of these OR interviews?

They can force your cooperation via the courts. In extreme cases this case result in arrest!

Lack of cooperation and answers to their queries will likely case them to be more aggressive in their investigations, and might result in the director missing an opportunity to defend a claim being brought against them personally (which could result in them being fined, disqualified, and/or sued.

 

[Elliot Green]

Question
What would happen if a person did not attend one of these OR interviews?

Public Examination is the potential consequence. If you avoid the court hearing for that then you can potentially anticipate an arrest warrant.

 

[Elliot Green]

Can't you vote to get the OR replaced with the original CVL liquidator?

The ability to replace the OR usually requires a minimum of 25% of creditors (by value) making use of a Rule 15.18 requisition to invoke a meeting for a decision for an IP to replace the Official Receiver.

 

[JEREMY HAWKE]

Public Examination is the potential consequence. If you avoid the court hearing for that then you can potentially anticipate an arrest warrant.

That makes that Spongebob look really dodgy .

 

[Elliot Green]

That makes that Spongebob look really dodgy .

The strike off process is not necessarily a problem unless you are either failing to inform creditors of it (voluntary strike off) or failing to file (accounts or confirmation statements) to engineer it (compulsory strike off). If you are looking to engineer it by failing to file, then the problem is that a criminal offence is being committed to bring about the strike off, which plainly has a nefarious aspect to it.