How to recover an outstanding payment from a customer

Case Background

We recently got involved with two businesses in successfully claiming an outstanding payment from a customer.

A trade supplier in the scaffolding industry had experienced difficulties in obtaining payment from one of its customers where the relationship over a period of nine years had been very friendly and lucrative. However, recent events, Brexit, Covid19 amongst some cashflow issues had caused a certain amount of acrimony in the relationship. The supplier was owed a significant sum of money, there had waited long enough and had ran out of patience.

Some documents were received by the supplier informing them about the Company’s upcoming insolvency and that an Insolvency Practitioner (IP) of their choosing had been appointed to assist with placing the Company into liquidation.

The supplier contacted us and explained the background to their circumstances and instructed us to represent them to liase with the IP.

• We reconciled the claim thoroughly and ensured that all the supporting documents were readily available.

• Contact was made with the IP chosen by the Directors and we obtained all the necessary paperwork in relation to the pending liquidation.

• Some of the information we had been provided by the IP did not reconcile with that which had been provided to us by our client.

• We corresponded with the IP in question and raised various concerns.

• It transpired that our client was by far the largest supplier and creditor in the potential liquidation.

• We recommended an IP who was not chosen by the directors of the Company and appointed them by way of voting for an independent IP.

Successful Outcome

• The IP took control over the Company’s books and papers and investigated various transactions which took place prior to the Directors instructing the IP of their choice to place the Company into Liquidation.

• Detailed investigations were carried out and various transactions were uncovered where additional recoveries could be made for the estate for the benefit of all the creditors.

• As a result of the investigations, it is likely that the liquidator will be able to make a distribution to the unsecured creditors of the Company, meaning that our client will receive a substantial return on their debt.

If you are currently going through similar circumstances, then please do contact us. We do not charge for this service. All conversations are held in strict confidence.

Next Steps

If you have any concerns, then please feel free to and would like more information or even a confidential chat then please feel free to call me on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email me vee@navigatebr.com

This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising because of any person or organisation acting or refraining from acting on any information.