pre pack advice
Submitted by lostinspace on Fri, 06/08/2010 - 11:40
I have completed a pre pack and was advised to take monies from the company to pay the IP to buy the company back, he is now asking what the money was used for, and saying i used the funds personnaly when they were paid to him, if he takes me to court for the return of the cash do i have the right to ask him to repay said monies that i paid to him as that is the money that was taken from the original company to buy it back any advice would be helpfull, am i allowed to take money from a company before a pre pack even though it was a very swift decision that occured in only a couple of weeks
Pre-Pack Sale
From what you have said it is a brief summary, I do not intend therefore to comment on your situation specifically. To gain a full picture of what occurred (from both sides), if the IP is about to take action against you, then you should collect all the evidence you have as to what happened and when, to and from the IP. If some events happened and there is no physical evidence, write down the dates and time and what things occurred. Only once you have assembled all this information, I recommend you go to see or send it to a solicitor with specific experience of insolvency law. Such a solicitor will give you an opinion on the transactions.
Paul Rogers Partner at Bottomley & Co (www.bottomleyandco.com) Licensed Insolvency Practitioners based in Rugby, Warwickshire Email: paul@bottomleyandco.com, Direct tel: 01788 523840