Insolvency Practitioner Case Studies

Are you an insolvency practitioner? We have put together a selection of case studies from clients we have helped within the industry.

Glazier

Challenge: Our client, the Liquidator of the Company, passed us the remaining debtor ledger 10 months after their appointment, at which point no further debts were considered collectable.

The company was a glazing supplier and installer and the ledger was a mix of domestic and commercial clients. 

Given the nature of the business, the debtors had issues with warranties and incomplete works which meant that we had to assess each debt on an individual basis, in order to maximise recoveries for the benefit of the creditors.

Solution: We collated the relevant invoices and worked methodically through the ledger. Where issues with warranties, complaints and counterclaims arose, we worked through the issue to seek an amicable resolution to each account. 

Result: Against a remaining ledger of c.£128,000 of which most debts were now a year old and subject to queries, £55,000 was collected. A recovery of 43%.

Printing Company

Challenge: Our client was appointed Liquidator of a printing company which had an outstanding debtors’ ledger of £94,000 across 113 accounts.

The top five customers accounted for £74,000 and the remaining 108 averaged just £185 per account. Volumes of accounts with small invoice values always present a challenge with a high workload for little value. Not deterred by the challenge, we set to work.  

Solution:  We focused the first few days on collecting the 5 main accounts, which after provision of multiple documents were paid in full. We then set to work on the volume accounts as the remaining £20,000 would be key in covering liquidators’ costs and a dividend to creditors. 

Result: Against a ledger of £94,000 we achieved a collect out of £93,000 and completed the case within 90 days.

Lighting Maintenance

Challenge: Our client, the Liquidator of the Company, passed us the remaining debtor ledger 8 months after their appointment and exhausted their collections process. With incomplete records and the passage of time, we were tasked with collecting as much as possible for the benefit of the creditors.

Not deterred by the challenge, we set to work.  

Solution:  We worked methodically through the ledger and sought to establish debts that had already been collected, those that were disputed and those that needed additional information or enquiry. 

Certain debts proved tricky and where appropriate we agreed amicable settlements. Other debts were contested and where necessary we prepared these claims for legal proceedings. We dealt with several blue-chip companies and had to keep in regular contact to make sure our debt was made a priority.

Result: Against a ledger of c.£80,000, of which most debts were 12 months or more old we collected a further £35,000 of ‘uncollectable’ debt. A brilliant result which was unexpected by the client.

Mechanical Services 

Challenge: Our client was appointed Liquidator of the Company and quickly realised most of the c.£300K ledger would be disputed, due to the failure to complete contracts and contra claims against retentions.

Our challenge was to be able to obtain the documentation required to prove the debt and contest contra claims.

Solution:  We attended the company premises before shut down and went through every case file with the director to ensure the necessary contract documentation, applications for payment and payment certificates were held and transferred to our offices. Detailed notes were made in respect of any potential issues on each job.

We worked with the various customers to agree claims and settlements reached.

Result: Initial ledger totalled £300,000 and over the next 14 months to allow for retention periods to expire, we collected a total of £135,000, exceeding the Liquidators estimate to realise.

Car Dealership & Motor Parts

Challenge: Our client was appointed Administrator of the Company and we were appointed the next day to collect the ledger of c.£114K across 60+ accounts. Our challenge was to pull together incomplete statement information and invoicing, along with dealing with disputes.

Solution:  Ledger information was uploaded to our systems, along with copy invoices. We produced statements for each account and issued without delay.

Result: Collections of £104K against the ledger of £114K (£5K already paid and £5K parts not delivered). We achieved a full collect out within 8 weeks of appointment.

Are you in a similar situation to our clients?

If so, get in touch to find out how we can help you.

shaking hands in hexagon shape graphic

Get In touch

0800 009 6106