Case Studies

Home > Case Studies

LIQUITATION, LITIGATION AND ACRIMONIOUS DIVORCE

  • A couple owned a company, which was liquidated and had a personal wealth of £2million,

  • Coupled with a very acrimonious divorce with opposing solicitors ‘revving it up’,

  • Litigation started by the Liquidator against the directors, playing on the divorce acrimony,

  • The liquidators secured Litigation Funding and their solicitors were very aggressive in their approach running up substantial costs,

  • Claims by the liquidator amounted to £1.35million and Writs were issued,

  • With our direction the cases were settled at £600,000 payable over a year, including costs,

  • All our representations were given in such a way as to also enable the finalisation of the divorce proceedings, and

  • The final Court hearing in the Divorce was avoided, with a cost savings estimated by the solicitors at £175,000.

From our perspective, this was a great outcome and indeed the lady involved in the case has subsequently given us another two introductions.

SUCCESSFUL RETAIL ORGANISATION BUT A PROPERTY DISASTER

  • Our clients owned a successful retail operation with a turnover of c£20million pa and profits of c£1.1million pa,

  • The directors decided to strip the profits out of the successful retail concern into a couple of speculative development schemes that went hideously wrong,

  • This fateful entry into speculative development culminated into crystalised losses of about £4.7million,

  • These losses were supported by full Personal Guarantee exposure and then the threat of Insolvency proceedings by the Bank on a personal and corporate level,

  • We became involved, unravelled the situation and eventually we were able to settle at £1.87million on a full and final basis, and

  • We also gave assistance in securing the funding to settle the full and final amount.

Throughout we drove the case keeping legal costs to a minimum despite the issuance of Writs by the Bank.

A BRIDGING LOAN GOES CATASTROPHICALLY WRONG

  • Our farming clients sold a site with planning permission for £4million only exchanging with a £20,000 down payment,

  • They drew down £1.3million of the ‘perceived profits’ of the site sale to bridge the purchase of another farm,

  • Throughout the due diligence on all sides was poor,

  • When the purchaser looked to conclude the deal, huge issues arose from the title and planning points. There are too many to list!

  • An agreement was made with the purchaser to allow them to renege, because of the legal issues at £300,000,

  • The bank loan rose over time to about £2.1million with costs. We were introduced and we appointed a commercial solicitor that we often work with,

  • Negligence proceedings were then taken against the solicitor and architect acting for our clients,

  • After three years of work, eventually we secured awards of £1.4million net and costs, and

  • The bank was settled at this £1.4million on a full and final basis and most importantly the farms retained.

We controlled the litigious Bank right the way through and directed the case for our clients, driving this to an excellent conclusion, but after much suffering for our clients.