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Ash
Ash, Solicitor
Category: Bankruptcy Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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A Private Limited Co...borrowed monies from Natwest Bank against

Customer Question

A Private Limited Co...borrowed monies from Natwest Bank against two properties. During recession period the company fell behind mortgage payments and the bank seized the properties and sold them off at an auction for pea-nuts. The product sold by the bank was catergorize by the regulator bodies as mis-selling. The comnpany was dissolved by liquidator. We will get the compensation from the bank provided we can restore the company.
When we approched the court we were told, the company was insolvent. We have prepared accounts of the company for 2011, 2012, 2013 and 2014 and show profits. Furthermore, when the assets were sold at an auction, according to luiqdator, there was surplus of 100,000. Please advise.
Submitted: 2 years ago.
Category: Bankruptcy Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
Is the company currently struck off?
Customer: replied 2 years ago.
The company has been dissolved and struck off. We are trying to restore the company. The court says" that it is insolvent" where as when all the assets(2-Properties) were seized by the bank and sold off at auction for "sale fire prices" and after paying all the associated charges that is for the Estate Agents, solicitors and Liquidators, surplus of 100,000 Pounds was left over. Our Accountants have also prepared accounts for the years 211, 2012, 2013 and 2014 showing profits of nearly 50-60K for each year.
The bank account of the company was closed in the mon th July, 2010 and the company was dissolved in the month of October, 2012. According to our understanding, dissolution only applies to Public Limited Companies.
Please advise, what course of action is left with us to restore the company. We re-iterate as under;-
For 4-years as aforementioned show nearly 50-60K profit for each year.
There was surplus of 100,000k left over.
Now those 2-properties can be sold for much higher amounts fetching nearly double amounts the company paid in the beginning.The court want to know why it should be restored when it is insolvent.
Our answer;-
How can it be insolvent when there was surplus of 100,000K
4-years show a healthy profit.
The liquidator shouldnot have dissolved because it is not a public limited company.
Please elucidate your arguments and reason to enable to restore the company. So far we have not replied to the court except in the first instance, did try to send abbreviated accounts for 4-years as per UK Companies House to the court..
Await your reply, The typing is a b it eratic for this, please forgive us.With regards,Sunder
Mohan J Mitra.
Customer: replied 2 years ago.
We have written a reply and await an answer from the Alex J
Expert:  Ash replied 2 years ago.
Can you prove the £100k?
Customer: replied 2 years ago.
About 10-moths ago, we did receive a letter from the lquidator that after metting all the expenses there is surplus of 100K and moreover, the bank has admitted there was mis-selling of the product and we can claim from the bank trading losses and also other losses including capital losses. The account was closed in July, 2011 and the company was dissolved in Octoer, 2012. We have got prepared accpunts for 2011, 2012, 2013 and 2014 and those accounts show a health profits as said before. Very recently e-mail was sent to the bank to compensate for this 100k.
The court is objecting stating the company was insolvent. It is feared that you have not understood our position and asking basic question. Please advise us some technical assistance whereby we can go the court and get the compaby resotored. With regards
Expert:  Ash replied 2 years ago.
but the Judge has refused and said its insolvent?
Customer: replied 2 years ago.
We got a letter from a clerk to the court stating therein the company can``t be restored as it was insolvent. We awit your answer. As there is surplus of 100k and in view of this there shouldn`be any objection.
With regards ***** ***** your reply.
Expert:  Ash replied 2 years ago.
So the Judge has refused. In that case you MUST appeal that decision. You would need to complete form N161
http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n161-eng.pdf
If you disagree with a decision you can ONLY appeal.
Can I clairfy anything for you about this today please?
Alex