Messy redundancy following technical-insolvency

chris1210

This may be a bit longwinded, but ill try to keep it short, and thank anybody for reading it and providing any feedback

Myself and 50+ people worked for a company which was bought out of Administration in Jan 09. The new owner promised much and talked a very good game. Up until July last year everything was fine, until we started getting paid late, or paid in chunks due to a lack of working capital.

The company gradually fell more and more in debt with wages and creditors, and it came to a head whereby neither Decembers or Januarys wages were paid. On 22nd Jan, the MD called a meeting, and said he had no choice but to make everyone redundant with immediate effect, as he could not pay us and the company was unable to continue trading.

His speech involved him saying that the company would appoint administrators in the next few days to protect the company pending any possible takeover (which he promised multiple times, but came to nothing). Over 5 weeks later and no administrator has been appointed, and a wind-up order placed on the company by a supplier has been adjourned twice at the courts.

To my knowledge, all staff are owed 8 weeks wages, plus redundancy payments, and lieu of notice payments. I understand that this is capped at £380pw (minus JSA) when having to claim off the insolvency service.

Obviously we cannot process claims until the company is either in administration or liquidated, but is there ANY chance we could lose this money? People are getting seriously concerned that the money could disappear, as the owner owes us the money up until the point where the company is ceased.

We dont know the whole story with how and why the court case was adjourned again, but we don't understand how the company can seem to technically still exist despite making every member of staff redundant, oweing them over £150k, and oweing suppliers tens of thousands too, it doesn't make sense.