Director of creditor in liquidation is asking us to pay him directly and not the liquidator.

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deranne

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We are closing our sole trader business. 2 years ago one of our main suppliers went into voluntary liquidation through one of the main liquidation companies. For one year we received statements from the liquidator and we had been paying amounts. The statements stopped but the former director of the company was calling in personally for payments on behalf of his bank from our understanding. Now he is involving his bank in talks with us to secure a final payment even though his company is listed as liquidation complete.
Where do we stand on the remaining debt. My husband who is the owner of our business said that his(former director) banks guaranteed his purchasing and he owes the bank money. It is the director in person who is now seeking the debt and not the liquidator.
We have not refused payment but we are not in a position to pay it in full or even close to be honest.
 
deranne said:
My husband who is the owner of our business said that his(former director) banks guaranteed his purchasing and he owes the bank money.
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You should ask the former director and his bank to write to you asking for money and explaining why you should pay it to him and not to the liquidator.

Then send that letter to the liquidator.

It sounds from what you are saying that the company had some form of invoice discounting. In other words, the bank bought the debts from the company and although you paid the money to your creditor, they sent it on to the bank.

I don't know how they are treated in a liquidation. I imagine that you still pay the liquidator and they pass it on to the bank.

Brendan
 
Thank you for the responses.
The liquidator has finished with the company. Our accountant has said its listed as complete. Our debt is with the company and now it seems as the former director had a personal guarantee with his bank on loans to the company both are trying to come heavy on my husband. So any outstanding debt I assume should surely be dealt with solely by the liquidator? Any communication or pressure to pay outside of the liquidators is not correct??
 
Are you saying that the bank has been in direct contact with your husband?

Contact the liquidator about it.

If the amount is large, then consult a liquidator about it for advice on how to deal with it.

Brendan
 
yes. The former director arrived to collect some money and seemed like he was surprised we were closing (we had emailed all creditors to inform them and to get in contact to arrange settlem
 
upto last September which would have been exactly 1 year after liquidators moved into the company, the following letter would arrive to my husband (from deloitte) which states

'Named company Debt purchase agreement dated xxxxxx(back in the 90's) between bank and company

As you may be aware by ordinary resolution of the company dated xxxxx was appointed liquidator of the company.
Please note that pursuant to the terms of the Debt purchase Agreement named bank has acquired ownership of all debts of the company both present and future. Accordingly insofar as you have a liability to the company please note that this liability is now due to named bank.

Likewise shortly after using the same terminology we would receive one from the named bank.

Has anyone any experience of this before.
 
Then that means that you owe the money to the bank.
You should pay the bank directly and certainly not the director.

Ask the bank to give you an up to date statement and make sure that it is correct.

Brendan
 
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