CASE STUDIES
This was a small company providing television programme production services. After 11 years of trading, the company’s director faced unexpected long-term health issues and could not continue to work at the level he had previously been working at. He was struggling to provide for his family and he had a historic overdrawn directors loan account that he was no longer in a position to repay. His own personal financial circumstances were impacted by his mounting medical expenses. He remained fearful of the consequences of a liquidation.
It was a sad story all round and most of his company creditors had remained supportive, having been in business with him for many years. The business was not expected to return to solvency and his wife was struggling with her work-home life balance and was worried for her husband.
By the time we were introduced to the case, we saw no prospects of the company recovering but we also had to diplomatically address the overdrawn directors loan account. We were compassionate but compliant with our professional standards and duties. We recommedned that the director sought independent specialist advice before making an offer to settle the loan account. His advisors explained the physical and mental health issues faced by the director and the limited financial resources available to him. His wife made a fair offer to settle the loan account which we were able to accept without the need for negotiation. It allowed us to conclude the liquidation and ensure that the director could focus on his health issues.
His wife was enormously grateful for the way that we handled this delicate situation and she was extremely comlimentary, having seen the best side of insolvency practioners when faced with a dilemma. There were no complaints from any creditor and we were able to pay a distribution to the preferential creditors. The case was closed within 9 months of the appoint of liquidators.
An honourable solution crafted with care and undertsanding by all of those involved.
