Stephensons successfully represented two former company directors in defendant substantial insolvency claims brought by joint liquidators following the collapse of their business.
The liquidators alleged that the directors were liable for a range of claims arising from the company's insolvency, including allegations of misfeasance, wrongful trading, transactions at an undervalue and breaches of directors' duties. The total value of the claims exceeded £1 million.
The case involved detailed scrutiny of the company's financial affairs, including allegations relating to a directors' loan account, payments made to third parties, alleged transactions involving connected parties, and outstanding tax liabilities.
The directors maintained that they had acted in good faith throughout the life of the business and that many of the allegations failed to reflect the commercial realities faced by small businesses during and after the Covid-19 pandemic.
Specialist commercial and insolvency litigator Jade Fairhurst acted on behalf of the former directors throughout the dispute. Following negotiations between the parties, a settlement was reached just less than £200,000 without the need for contested court proceedings. The settlement ended all claims arising out of the liquidation and provided a full and final resolution of the dispute.
How we help
Insolvency claims against directors can have serious financial and reputational consequences. Early specialist advice is often crucial in identifying potential defences, challenging claims, and exploring opportunities for settlement.
This case demonstrates Stephensons' ability to manage complex director liability disputes and achieve favourable negotiated outcomes, even where substantial claims are being pursued by liquidators.