6 day recovery of £450,000 for an employment agency
Six day recovery of £450,000.00 which consisted of invoices dating back two years.
Read on to find out how we achieved this.
Creditors Administration Petition
We acted for an employment business who had supplied temporary workers to a communications company. Our client had invoices that dated back two years and despite numerous efforts to collect payment of the invoices due, circa £450,000.00 remained owing to our client.
As a last resort our client contacted us for advice on recovering the unpaid debt. We reviewed the accounts of the company that owed the debt and noted that they were balance sheet insolvent. Our client therefore had the option to issue a Winding-up Petition as the debt was not disputed as timesheets had been approved via an online portal prior to invoices being raised.
The communications company was a large business and we advised our client, whilst the company is insolvent, it is likely it could trade out of insolvency and appointing an administrator in an attempt to rescue the company was an option.
We contacted an Insolvency Practitioners who reviewed the accounts and we sought their support if we were instructed to issue a Creditors Administration Petition (“CAP”). We received instruction to proceed and issued the CAP. The CAP was sent to court and issued by the court on the same day with a hearing date set for 10 days later.
The communications company responded by instructing solicitors who sought to obtain a reduced payment and additional time to pay to allow further reconciliations to take place. This offer was refused as our client had spent two years assisting the company with the reconciliation and all of the invoices were due for payment. This could not be disputed as invoices could not have been raised without an approved timesheet being uploaded on an online portal.
Our client within 6 days of issuing the Petition received full payment of the debt resulting in a very happy client who had spent untold man hours in trying to collect payment themselves over a two year period. In addition to this, our client received 75% of their legal costs. They agreed a settlement sum on the costs in order to bring the matter to a close.
DebtFast is backed by a full team of litigation and insolvency solicitors. Whether your debt is large or small we have the resources to help.