Alex Watts : Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Alex Watts : Had Administrators been appointed and they then continued to trade?
I think so. The work for the company had pretty much dried up I think but I think they were still trading. Could get a definite answer on this from ICS.
Alex Watts : Ok.
Alex Watts : The situation is this,
Alex Watts : If administrators have been appointed they can continue to trade.
Alex Watts : Very similar to Woolworths and Comet when they went into administration.
Alex Watts : However all debts on appointment of an administrator are frozen.
Alex Watts : This means you can't take action, but the administrators can continue to trade.
Alex Watts : A line is drawn under the old debts and they would be subject to any proceedings or claims etc
Alex Watts : But if administrators are appointed the company can continue to trade but old debts are put on hold.
Alex Watts : I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest
Alex Watts : Can I clarify anything for you about this today please?
Just to clarify - even though the company has now been sold, and so presumably the previous owners/directors have made a bit of money, I can't take action against them.
Alex Watts : Sadly not. You just have a claim against the old company.
Alex Watts : Unless you had a personal guarantee.
You say the old debts are now on hold, does this mean they are now in the hands of the administrators.? should I therefore invoice them.? What happens next?
Alex Watts : If there are any assets then you may be paid out something.
Alex Watts : But if the company was sold for £1 then you won't get anything.
Alex Watts : I am sorry
On 10th April, it was announced that the business and assets of the company had been bought by another company. The announcement said the new company had committed substantial financial backing to the new businesses and this would ensure all payments that would have otherwise been payable by the sister company this month will still be payable. So could I therefore include the old commission payment, of which I only just became aware of in March, in my March invoice.
My overall feeling is therefore that I can try and do what I can, but that I have no legal means with which to enforce the debt.
Such is life - happens all the time I expect. I appreciate your kindness in answering my question. Please confirm that you have no further information/thoughts that you can provide
and I'll be happy to provide a rating
Alex Watts : You could try and pursue this through the administrator. They may pass the claim to the new owners.
Alex Watts : But I suspect all the old debts are written off.
Alex Watts : But you can but try.
Alex Watts : Can I clarify anything else?
You have provided a full answer. I am very happy with the service you are providing - a very valuable one.