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. The joint liquidators undertook a thorough investigation into the companys business affairs, uncovering multiple claims against the director and its parent company located in the British Virgin Islands. A critical component of their strategy involved 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 British Virgin Islands parent company, and employed strategic pressure tactics, including threats to initiate claims. This proactive approach culminated in the director agreeing to a meeting to negotiate a settlement. As a result of these efforts, the joint liquidators secured a significant settlement that exceeded the original offer. This settlement not only resolved the claims against the director and the parent company but also 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.