As a firm Lucas Ross – Business Rescue, Recovery & Insolvency are becoming increasingly involved in creditor meetings, supporting business owners across the UK.
Hundreds of Insolvency notices are circulated to creditors but with a general perception of poor recovery rates, these notices can be overlooked or treated with a degree of apathy. We are certainly challenging and changing this perception
Please note this is not Debt Recovery in the sense that people would necessarily understand. It involves us supporting business owners wanting representation, tarnsparency and someone who will ask and want to understand how a business they have worked with has suddenly fell into liquidation (often after reassuring discussions) and if they are going to get paid, or what happens to their stock etc.
Under the Insolvency Code of Ethics there is a duty of transparency owed to creditors. A creditor is deemed to have a legitimate in interest in the outcome of the Liquidation; they therefore have the right to ask questions about the Liquidation. It is also important to stress that Liquidator Duties and in particular fiduciary duties extend to the unsecured creditors as a whole.
What information should be shared with Creditors in A Liquidation
An Insolvency Practitioner is a heavily regulated individual. The standards of conduct expected of such a person are very high. As such the expectation is that information should be shared with creditors rather than not. Confidential information, privileged information or information shared that might be prejudicial refused.
Creditors should be given information regarding investigations, any action being taken, and whether funding is being provided by third parties; disclosure would be subject to considerations of privilege and confidentiality and whether investigations and litigation might be compromised. The times at which information is provided to creditors will vary from case to case, but as a minimum an office holder should:
a) include within the first progress report a statement dealing with the office holder’s initial assessment, whether any further investigations or action were considered, and the outcome; and
b) include within subsequent reports a statement dealing with investigations and actions concluded during the period, and those that are continuing.
Lucas Ross – Creditor Services
We already work with a number of Business Owners and offer our Creditor Services for free. We ensure that all our information is regularly updated, giving clients total transparency in relation to their insolvent debts. We also ensure that every client is allocated a dedicated point of contact who proactively manages the relationship. If you would like to understand your insolvency notice and what it means to you, then do not hesitate to contact us at help@lucasross.co.uk
