UK Bankruptcy Law
UK Bankruptcy Law Questions Answered by Verified Experts
CVA offers 35p in the pound for new co debt.
I had nothing in writing from the new co regarding old co debt - was a verbal 'goodwill' agreement to keep operationally important sub-contract staff working going forwards.
The old debt was registered with administrators but this is long gone - I will see about £50 of £6000 in a few months 'maybe' is what they told me.
What I am trying to get at is the legality of this new owner buying the company at 10% of book value to save the jobs / work and then within 5 months entering into a CVA. Its not within the spirit of the agreement with the administrators / the spirit of the law at all so far as I can see.
Feel free to tell me Im wasting my time as this appears to be the case.
There is obviously no protection for workers in my situation from the law. There is also clearly a massive area open for abuse by unscrupulous businesses within these pre-pack admins.
Maybe I should just sign on the dole as sine 12/2/2013 I have had 50% of my income stolen by 2 unscrupulous businesses trading under the same name. I simply cant believe there is nothing I can do.
The buyer was not directly connected to the company prior to sale so far as I know.
I have to disagree that 35p is a good deal. Its fraud in my view but as that's not the view of the law I will have to live with it.
Unfortunately the new owner has manipulated his other companies to be the largest creditor. Therefore the CVA will go through as he has enough of the vote to force it.
The administrators should not have let this happen.