Oct 1, 2015
Sections 117 to 119 of The Small Business, Enterprise and Employment Act 2015 came into force on 1 October 2015 creating new opportunities for IPs
Sections 117 to 119 of The Small Business, Enterprise and Employment Act 2015 came into force on 1 October 2015 creating new opportunities for IPs to maximise realisations into their cases
The changes allow:
An administrator to bring actions for wrongful and fraudulent trading, previously only liquidators could bring these claims, and.
An administrator or liquidator can now assign the following Insolvency Act actions, previously these clams had to be brought in the office holder’s name and were unassignable:
Fraudulent trading under sections 213 or 246ZA;
Wrongful trading under sections 214 or 246ZB;
Transactions at an undervalue under section 238;
Preferences under section 239;
Gratuitous alienations under section 242;
Unfair preferences under section 243; and
Extortionate credit transactions under section 244.
Finally the proceeds of any of the above actions however taken will not be considered part of the floating charge realisations and so unsecured creditors will be able to obtain greater recoveries.
Cavendish IP Solutions can take assignment of all of the above actions valued at more than £30,000.
From the date of the assignment all responsibility for the case will rest with Cavendish IP Solutions leaving you free to concentrate on other case matters and we further indemnify you against any adverse costs orders in the event the action is unsuccessful.
Please Contact Joel Goschalk on 0207 612 9550 or by email if you have any questions or would like to arrange training for your team in this rapidly changing area.
Cavendish IP Solutions Limited is incorporated and registered in England and Wales with company number 09439024 whose registered office is at 7 Cavendish Square, London W1G 0PE. Cavendish IP Solutions. This post does not constitute legal advice.