Hi all, similarly to another thread on the forum this morning, I'm seeking some advice regarding recovery of a debt. It seems that the debtor is now looking into the option of insolvency, but whether or not that process has formally begun is not clear to me, and I'm wondering if there is any action we can take now to increase our chances of recovering the debt. This is all very new to me so please excuse any naivety with regards the insolvency process. I understand that it may well be a lost cause and a lesson learned, but I'd like to understand the process better and if there are any steps we ought to take. The background is that we, a limited company, supplied a customer, also a limited company (albeit it seems a spin-off limited company incorporated in November 2020) with perishable stock for an event they were putting on last month. The event was very poorly received on day one, so they decided not to continue with it. I will outline some of the relevant parts of the correspondence we received - although I have taken care to redact and re-word parts to remove specific or identifiable details: "Due to closing the event down after one day of opening and the mass of refunds, plus other invoices owed, we have had to put [Debtor] LTD into administration. We are currently seeking advice from insolvency practitioners and starting the process with them. This means we are unable to use money in the company account to pay invoices owed and can therefore add you to our creditors list for them to deal with you. I doubt there will be much left after this process to pay out to suppliers." I then asked for some clarification and received the below: "Our initial contact with the insolvency practitioners was on 18th December 2020 explaining our situation. On the 21st December a full run down of accounts, money owed, incoming and what had already been spent was detailed with them. We were then advised not to settle invoices or any other payments (including refunds) from that point on. Our accountant also advised us of this on the 18th December. We have not been processing refunds ourselves, however customers have been doing Chargebacks and Credit Card disputes to obtain a full refund. We did not have the £[xx]k in tickets sales money up to that point to offer full refunds to customers and also paying invoices from suppliers, which is why we advised customers to go this route. We are seeking advice from [XX] at [insolvency firm], with the view for them to take control of everything. We are still in the early stages with them, with Christmas and New Year closures this put a hold on all movement forward. They are currently seeking advice from their solicitors as to how and what we can/cant do with the money in the company bank account. No formal paperwork or agreements have been set in place as yet, however the framework and all account transparency is in place. I had every intention of paying your invoice, however I simply had not got around to doing so.. much the same with other contractors and suppliers. The site still has equipment there as we’ve been unable to pay for it to be removed. We had a steady flow of tickets sales money coming in everyday ranging from £xk - £xk, so money was readily available to pay for everything. There is currently £xxk in the company account, this would have been closer to £xxk if it wasn’t for Chargebacks. We have paid out around £xxk on other contractors and suppliers up until talking to [insolvency firm], however after the first night everything stopped from a payment point of view. If I could settle all invoices (which with ‘cash in the bank' I can) I would, but since speaking with [insolvency firm], I (we) are now accountable to them and the law. There are also other suppliers who we have outstanding amounts with, as well as you guys." To me, it doesn't seem that their reason for going into insolvency is particularly legitimate, and I'm not sure how much truth there is in the "accountable to them and the law" part (though, again, my knowledge is lacking in the area). One final bit of info - the debt they owe is a fairly small fraction of the cash that they have told us above that they have in the bank. I am not sure of the next steps to take so would really appreciate any thoughts or advice.