I am a director of a company where one of my customers owes us over €100K. This was for supplies bought between Oct and Dec 2017. My Client was contracted by a Builder for the renovation of a well known establishment where the majority of the supplies were installed.
My Client liquidated his company in Oct 2018. At the liquidators meeting he said the main reason was due to non-payment by the Builder (Main Contractor) for this one particular job.
In the months leading up to the liquidation we made every effort to reclaim monies owed. Countless phone-calls, meetings, promised of payment etc. We had gone as far as to commence legal proceedings against him and we were only a short time away from securing a judgement. At one of the meetings (April 2018) my Client said he had come to an agreement with the Builder were he would "take a hit on the amount owing on the job on the back of promises of future work". I asked my Client about this promise at the liquidators meeting and he said it didn't work out.
So far a normal liquidation if there is such a thing...Builder stings my client for €250k my Client goes bust and stings us for €125K. After a little research I found out that in the months leading up to the liquidation my client set up 2 companies. Both new companies are registered to an address where the Builder holds the lease. My Client continues to trade as if nothing happened albeit under a different name and I believe he may have even carried out some work for the Builder.
My Client made no legal effort in reclaiming the amount owed to him by the Builder. On the surface it would seem that the Builder and my Client have colluded to defraud my company and others, including revenue.
Apart from the liquidators meeting I have had no contact from the liquidators despite numerous phone calls and emails.
I realize the chances of me reclaiming any monies due are slim but is there case here for fraudulent or reckless trading and if so who should I contact?
What are the liquidators obligations in following up with my clients debtors with regard to securing the debt? Does the liquidator have to keep us up-to-date of his proceedings?
Any information or advice would be very much appreciated.
Thank You
(All companies referred to above are limited)
My Client liquidated his company in Oct 2018. At the liquidators meeting he said the main reason was due to non-payment by the Builder (Main Contractor) for this one particular job.
In the months leading up to the liquidation we made every effort to reclaim monies owed. Countless phone-calls, meetings, promised of payment etc. We had gone as far as to commence legal proceedings against him and we were only a short time away from securing a judgement. At one of the meetings (April 2018) my Client said he had come to an agreement with the Builder were he would "take a hit on the amount owing on the job on the back of promises of future work". I asked my Client about this promise at the liquidators meeting and he said it didn't work out.
So far a normal liquidation if there is such a thing...Builder stings my client for €250k my Client goes bust and stings us for €125K. After a little research I found out that in the months leading up to the liquidation my client set up 2 companies. Both new companies are registered to an address where the Builder holds the lease. My Client continues to trade as if nothing happened albeit under a different name and I believe he may have even carried out some work for the Builder.
My Client made no legal effort in reclaiming the amount owed to him by the Builder. On the surface it would seem that the Builder and my Client have colluded to defraud my company and others, including revenue.
Apart from the liquidators meeting I have had no contact from the liquidators despite numerous phone calls and emails.
I realize the chances of me reclaiming any monies due are slim but is there case here for fraudulent or reckless trading and if so who should I contact?
What are the liquidators obligations in following up with my clients debtors with regard to securing the debt? Does the liquidator have to keep us up-to-date of his proceedings?
Any information or advice would be very much appreciated.
Thank You
(All companies referred to above are limited)