How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Alex J. Your Own Question
Alex J.
Alex J., Solicitor
Category: Bankruptcy Law
Satisfied Customers: 3843
Experience:  Bankruptcy, liquidations, administrations, pre pack sales, re use of company names and director duties and offences.
13113900
Type Your Bankruptcy Law Question Here...
Alex J. is online now

The question relates to a company in administration of which

This answer was rated:

The question relates to a company in administration of which I am a shareholder.
The company has done a pre pack deal.If I attach a "Statement of affairs" document and a "Result of Creditors Meeting " document is it possible to tell me what sort of creditor (preferential?) I am and if I am likely to be paid?With reference to the "Result of Creditors Meeting" document my claim is for an unpaid amount owed to me and I think that the document details that my claim has been approved. With reference to page 7 of this document my claim was for £45,000 and I believe £22602 has been approved.
Customer: replied 3 months ago.
Files attatched

Thank you for your question and welcome. My name is ***** ***** I will assist you. Please could you let me know how your debt arose? Are these shareholder funds? You are unlikely to be a Preferential Creditor - these tend to be employees or sometimes regulatory bodies. You are probably an unsecured creditor. Kind regards AJ

Customer: replied 3 months ago.
Hi AlexMy debt is for unpaid shareholder dividends in 2016 and 2017. Dividends have been paid to director/shareholders with the same share class rights.
The debt arose whilst I was a shareholder, not a shareholder director.

Thank you. Unpaid dividends would make you an unsecured creditor - getting any return on the pound is good. Do you suspect they have more funds? The administrators normally charge a fortune for their services and this can eat up alot of the funds.

Customer: replied 3 months ago.
Thank you.
I think that’s the end of this question. Thank you for your help.Could I raise a separate matter on a new question relating to administrators later today?Thanks

Thank you. I am happy to answer any questions in relation to the administrator in this thread. In the meantime would you kindly rate my response? Kind regards AJ

Alex J. and other Bankruptcy Law Specialists are ready to help you
Customer: replied 3 months ago.
Hi AlexThe further question is below.
Please advise if a further payment is required. Many thanks.—The company that bought the company I have shares in (via a pre-pack deal) had a loan of £128939 outstanding to the company I have shares in (as per the latest audited accounts)The loan was not disclosed at all on the SIP16 sent to me by the insolvency practitioners so I made the insolvency practitioners aware of the loan in writing in order that it could benefit the creditors, including myself.An outstanding loan value of £35583 due from the company that bought the company I have shares in then appeared on The Statement of Affairs.I have queried the loan and value with the insolvency practitioner but I have not received a response to date with regard to why the loan was not disclosed initially and why the loan value has reduced from £128939 to £35583. I had voted to approve the administrators proposals on condition that they investigated the loan , on the proxy vote that I gave to the administrators my vote was not to approve the proposals.In addition, the company that owes the loan had a claim of £80000 approved on The Result of Creditors Meeting document. No outstanding amount at all owed to this company was detailed on the SIP 16 or the Statement of Affairs so I am conscious that this claim only appeared afterwards.Is this just the nature of Pre Pack deals or do I have reasonable (or any) grounds to make a formal complaint to the Insolvency Practitioner about any of the above matters? if so on what basis should my complaint be made and is there any merit in doing do? Given the information I have provided you with have the administrators acted correctly.Thanks

Thanks. I will review this tonight and revert to you. Kind regards AJ