24 February 2014
B P Collins secures recovery of debt in excess of £320,000
B P Collins acted for two private individuals who were jointly owed in excess of £320,000 as deferred consideration from a share sale.
They were owed these funds by a corporate debtor who was known to have a number of other creditors and there were concerns about its solvency.
Following default by the debtor we swiftly prepared and served statutory demands. Failure to make payment in accordance with these demands would have given the clients the right to commence insolvency proceedings. Those insolvency proceedings would have been made public and potentially caused the debtor difficulties with other creditors and its credit rating. The debtor paid before the expiry of the statutory demands and, as a result, we successfully secured the recovery of the debt in a cost-effective manner.
Matthew Brandis, partner in the litigation and dispute resolution team, comments: "The key to debt recovery is swift and firm action. This case was about putting our clients at the forefront of the debtor's mind so that, when money was available, our clients were at the front of the queue."