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Ben Jones
Ben Jones, UK Lawyer
Category: UK Law
Satisfied Customers: 9143
Experience:  Qualified Solicitor - Please start your question with 'For Ben Jones'
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Recently our business was placed into administration due to

Customer Question

Hi, recently our business was placed into administration due to a major client cancelling the business dealings. As we had effectively lost £6m of turnover virtually over night and after taking re-structuring advise the companies assets were sold to a newco (same directors). The assets were sold before-hand and then oldco was placed into administration.
However, newco has come into possession of a previous clients production tooling & dies at its premises and continued to trade with the Client for a short period of weeks and fulfilled o/s contract orders. The client rightly or wrongly believes it was still trading with the old company as we retained the same name of the business. This is a shortened version of a complex matter.
The old company administrator is now about to release his interest in the tooling. However, when newco acquired the assets of the business it also purchased the contracts and fulfilled these orders and supplied the goods. The client is now refusing to pay newco for the debts until the tooling is returned.
Can we excersise lien (as newco) over the tooling until the debt is paid ??
Submitted: 1 year ago.
Category: UK Law
Expert:  Alex J. replied 1 year ago.

Hi thank you for your question and welcome. My name is ***** ***** I will assist you. First question if the companies have similar names did you exercise the notice procedure under s216 of the Insolvency Act? Do your terms and conditions allow you to exercise a lien on unpaid invoices? Would the client be prepared to pay old co?