Longstanding overdrawn Directors’ Loan Account settled, despite business expenses claim by directors

Background

Our Insolvency Team were instructed to assist the liquidator with recovering a longstanding overdrawn directors’ loan account. The directors of the company argued that the monies withdrawn were used for business expenses of the Company, but did not provide any supporting contemporaneous evidence.

Our Support

The matter was contested, and another law firm were instructed on behalf of the directors. Following an exchange of detailed correspondence, and attendance at a settlement meeting with the directors, our insolvency experts managed to successfully negotiate a settlement; with the directors accepting our Part 36 Offer before proceedings were issued.

Outcomes

Our client has been able to resolve the final matter outstanding in the liquidation, and will be in a position to close the liquidation once payment in full has been received.