£1.8M: Illegal Distribution of Capital
IP Firm: Specialist IP Firm based in Midlands
Type of Investment: Funding the Office Holder
Start Date: September 2014
Completion Date: January 2016 (16 months)
The insolvent company had distributed the vast bulk of its cash to its shareholder by way of a ‘sale’ of the Company. Soon afterwards, the Company became insolvent owing large sums to creditors. We believed the sale was a sham transaction to a long-standing business associate, designed simply to extract the cash to the shareholder and avoid payment to substantial creditors.
The case was settled at mediation. The costs of the previous Administrators (separate to the Liquidator’s firm) were paid, alongside all Liquidator and legal costs. Dividends were paid to creditors.
“Without Manolete’s backing not a penny would have been recovered”. We are now on our 7th case with this firm.– QUOTE FROM THE OFFICE HOLDER