Proposal to Strike Off/Winding Up - advice please

[CW-Kirsty]

Hi, wonder if anyone can help?

We're a small business supplying another small busines who have stopped trading as at 31st July owing us money.

They have invited creditors to issue winding up proceedings (clearly they don't want to fork out of their own pocket) and have notified us that there is an active proposal to strike the Company off the records.

What concerns me firstly is that the director of the company has stated she is selling the business assets to a 'newly formed company' prior to winding up proceedings being issued. I have requested information from her on this company as I have concerns she may be selling to a family member.

Secondly, if none of the creditors want to take on the extra financial burden of issuing winding up proceedings, given we're unlikely to get much money back, what happens next? Can we oppose the striking off until the debt issue is cleared up? How can any of us ensure we have a chance (albeit limited) of getting anything back?

Many thanks for any assistance.

 

[Lime One]

You can write to Companies House, advise them this company owes money to your business and lodge an official objection in writing. Have you taken out county court proceedings yet?

 

[CW-Kirsty]

No, we haven't as yet. I just wonder whether we'd be throwing good money after bad by doing it?

It's less than £1000 and she has offered us 10% of the debt if the sale of the assets/stock goes through - we haven't accepted this as yet, I want to find out more about who exactly is buying the stuff as I'm a bit suspicious.

Obviously I don't want to come away with nothing, but I can't imagine any of her suppliers are owed enough money to issue winding up proceedings so I just wondered what happens if nobody bites the bullet?

 

[jim_price]

It sounds rather like these people are trying to pull off a DIY pre-pack administration. That's pretty risky for them. The idea of appointing an administrator is that he is independent and can legitimately sell assets to a newco if it is a reasonable offer. Without the administrator these people could be attacked for inter alia transferring assets at undervalue & exercising a preference.

Agree that you should object to the striking off, you might also contact the Company Investigation Branch of the Insolvency Service to express your concerns as to the directors' conduct. http://www.insolvency.gov.uk/cib/what-we-do.htm

 

[CW-Kirsty]

Thanks, that link is very helpful.

I'll see if they're prepared to give out more information on the company that's buying the assets, then ask the Insolvency Service to look into it.