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Monday 15 April 2019

Another example of our Insolvency services being not fit for purpose.



BSix Group funded using Angelsden in 2014 - taking around £166,000 off investors. Now it has been liquidated and yet the amount put into the business is declared as just £400 by the Liquidators. 


The final report from the Liquidator, Robert Horton of Auria Recovery LLP, confirms that shareholders only invested £400 in the company. The is contrary to the last filed accounts which clearly show the amount invested at that date as £256,470; with £400 being the nominal value. 

So the shareholders have been rubbed out - declared non existent by the official Liquidator who picks up over £5k for the privilege. 

So as we say, the system is not fit for purpose. This we think must be a common fault. It is essentially saying that investors are worthless once they have invested. And it is, more importantly, hiding the true costs of failure so Directors get away with anything. 

It gets worse. 

You will not be surprised to hear that the Liquidator agreed to sell the company's assets back to the Director of the liquidated company for just £15k. As we have stated before this is a preferred option because it is the easy way out. You might be surprised that this Director failed to pay the instalments (why are there instalments on a debt of just £15k ??) and was in that same year, himself declared bankrupt. The company he set up to purchase the assets was closed in 2017.  So the money was never paid. This does seem to us to be a half backed plan that does not pass any level of scrutiny.  

Back to the shareholding - if the nominal value is in fact the correct figure by law then the law needs changing. If this is a gross error, then can we have the money back please Mr Horton? Otherwise where is the accountability? 

1 comment:

  1. Shocking, talk about a cash and grab by the liquidator. I thought there was a professional body to monitor this kind of stuff and competence. If this guy is ICAEW, then I am ashamed to be a member of that organisation if they let members get away with this kind of stuff

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