Liquidator rejects director’s claims and ensures large return for creditors.
The client was an insolvency practitioner. Roberts Legal were engaged to assist in recovering an unsecured loan to the Director of the company in liquidation and a number of related entities.
The client sought to recover in excess of $200,000.00 from the Director and related entities. The Director raised various offsetting claims which exceeded the amounts claimed by the client by over $100,000.00. Roberts Legal considered the offsetting claims and advised our client to reject the Director’s assertions.
Investigations revealed that one (1) of the related entities owned real property which they intended to develop and sell. Roberts Legal negotiated a Settlement Deed requiring payment to our client as well as providing our client with a release from the offsetting claims and taking security over the real property.
The debt was not repaid within the terms of the Settlement Deed and the Director sought to reopen the claims for which the Settlement Deed provided a release. Roberts Legal again rejected their claims and took steps to force the sale of the real property. The property was sold with a substantial return to the client.
The matter was resolved without the need for litigation.