Case Study: Six Figure Settlement Agreed Within Days of Assignment

Background: On 8 May 2024, a company entered compulsory liquidation following a petition by HMRC.
 
Although the company’s balance sheet appeared to show solvency, the HMRC petition identified outstanding liabilities dating back to 2020. The liquidator’s investigations also revealed an overdrawn director’s loan account and various outstanding loans to parties and entities connected to the company’s sole director.
 
The liquidator had sought to pursue recovery of the outstanding loans for several years, but without success. Frustrated by the lack of progress, the liquidator assigned the claim to Manolete on 12 May 2026.
 
Manolete took the assignment despite the apparent absence of known assets in the director’s name.
 
Instant engagement: Following the assignment, Manolete sent a letter of demand to the director. The following day, solicitors acting for the director contacted Manolete to propose a settlement.
 
Within a matter of days, the parties had agreed a six-figure settlement, payable within 14 days, with recoveries to be shared with the estate.
 
Reputation matters: It would be great if all cases were so quick to be resolved!
 
However, Manolete’s reputation has been built by pursuing claims thoroughly and, where necessary, through to trial, enforcement or insolvency proceedings.
 
That track record means that when defendants and their advisers receive correspondence from Manolete, they understand that the claim will be taken seriously.

Author: Caleb Bompas | Email: caleb@manolete-partners.com | 07729 928336