Consulting
Frpadvisory
Full Credential Description
In this case study, a property development company faced significant financial difficulties after failing to meet its capital gains tax liability, which led to HMRC issuing a winding-up petition. Following the issuance of a winding-up order, FRP was appointed as liquidators to manage the situation. The joint liquidators undertook a thorough investigation into the companys business affairs, uncovering multiple claims against the companys director and its parent company located in the British Virgin Islands. A critical aspect of their approach included conducting a formal interview with the director, which yielded essential information to support the claims. The liquidators maintained sustained correspondence with various connected parties, including the parent company, and employed strategic pressure tactics, such as the threat of legal action, to encourage a settlement discussion. As a result of their proactive and robust approach, the liquidators successfully negotiated a significant settlement with both the director and the parent company. This settlement was notably higher than the initial offer and effectively prevented associated parties from making claims in the liquidation process. Consequently, this led to a substantial dividend for unsecured creditors, amounting to approximately 80p in the pound, thereby maximizing returns for those creditors involved.