Company owes me money and just gone bust,

toffeerevelsftw

They are called PDCGroup LTD and they have just gone bust, There where due to pay there outstanding invoice of £3,888 today and i have just been informed they went into liquidation on Thursday.

Now im a ltd company and so are they but i just want to ask will i still get my money. Seeing as my firm is only 7 weeks old this really is a kick in the teeth,

Also what sort of timescale would it take to get it.

vax2002

No: however I will explain to you how subby bashing works:
Mr Crook goes to the Bank and takes out for example a 300k loan guaranteed on his house or equity.
Mr Crooks sets up Crook Builder LTD and Prices up work in the building trade to the value of the 300k
He then starts to live like a king on the 300K loan , pays himself huge bonuses, pays off his mortgage, buys a real flashy car, all perfectly legal.
He then solicits CREDIT yes CREDIT from sub contractors in form of getting them to provide materials and Labour for the building project on the promise of "jam tomorrow" you grant him this CREDIT foolishly thinking what he is giving you is work ?
Mr Crook completes the project, which was won by deliberately pricing at a loss.
He has squandered the £300 k on a flashy car, paying his mortgage via huge bonuses ect.
THEN, The Client pays Mr Crook for this fantastic building job with all this work that has been provided by Sub contractors.
Now the Clever bit.. HE REPAYS THE BANK its loan and interest out of the profit.
So The loan is clear, the bank knows he is good for the next one, however as he has squandered the first £300k and he priced at a loss, Mr Crook now has "invoices" from sub contractors to the value of say £400k and has No Money left to pay them, he bankrupts the company, starts another one and does the same again, from one town to the next, the banks know he is good for the money and fall over themselves to lend to him again .

Now I understand this will not help you with the lost money, however what it will help is with an insight in to how the systems works .
Points to note :
That when you price sub contract work: you are in fact granting Credit to the principle contractor, if he goes bankrupt his liabilities are secured in sub contractors and shared accordingly.
When Granting CREDIT (pricing work) to principle contractors you can insure against the risk of bankruptcy a specialised Insurer will search the directors and the premium will be set at the level of trust they hold the director in.
Mr crook and his set up well they most likely know him and would not insure the liability, tipping you off you are going to get
"Subby bashed. "
Things to look for : false impressions : new flashy cars, strange new directors nobody has heard of.
company websites full of stock pictures of smiley people answering phones.
Premises business addresses that are actually call handling centres and mail drop box fronts.
Now armed with this info you can learn that when you price work you are offering credit and put procedures in place to credit check those you are giving it to, it is the difference between survival or going broke in the Building trade.

yes it is wrong, yes its stinks that they can go from one to the next, ripping off from one contractor to the next, but it's legal and a lot of people have become multi millionaires from it.
In short where you see LTD after a company name that is a warning claxon, not a statement of a good company, it is a warning that if they go down, or are a subby bash honey trap, you will be in fact giving them credit to the value of your Invoice.

Horace

If they have been liquidated..do you know who the liquidators are? You would need to register with them as a creditor in the hope that you may get something back, although you may not get everything back that you are owed.

A tip for the future - always do your due diligence on firms before agreeing to supply them especially if they have to pay you a large amount of money, also change your terms so that they pay 50% in advance and 50% on delivery.

crazyguy

Even through the liquidators you may only if there is any money left get a very small proportion back, maybe £0.01 in every pound owed, and only if there is money left after tax and vat and liquidator is paid.

the most likely thing here is you that you wont see a penny back, so I would reside myself to that, you can claim your vat paid if your vat registered, I think its 6 months later, and also put the amount down as a tax right off, check HMRC website to verify this.

cavework

Are you a secured creditor?
If not then VAX 2002 has answered your question.
Good luck and I sympathise.
PS if you are VAT registered you can get the VAT element back after six months ..

Premier_2

toffeerevelsftw wrote: »

They are called PDCGroup LTD and they have just gone bust, There where due to pay there outstanding invoice of £3,888 today and i have just been informed they went into liquidation on Thursday.

Now im a ltd company and so are they but i just want to ask will i still get my money. Seeing as my firm is only 7 weeks old this really is a kick in the teeth,

Also what sort of timescale would it take to get it.

7 week old company and you have already extended cxredit in excess of £3k to a customer? :eek:
Time to get some professional help on credit management if you want to survive.

With regards to the company, what is the registration number of the business who placed the order, and hence you invoiced?
The reason I ask is that I see no record of PDC Group Limited being in formal liquidation yet. :huh:

no_choice_now

vax2002 wrote: »

No: however I will explain to you how subby bashing works:
Mr Crook goes to the Bank and takes out for example a 300k loan guaranteed on his house or equity.
Mr Crooks sets up Crook Builder LTD and Prices up work in the building trade to the value of the 300k
He then starts to live like a king on the 300K loan , pays himself huge bonuses, pays off his mortgage, buys a real flashy car, all perfectly legal.
He then solicits CREDIT yes CREDIT from sub contractors in form of getting them to provide materials and Labour for the building project on the promise of "jam tomorrow" you grant him this CREDIT foolishly thinking what he is giving you is work ?
Mr Crook completes the project, which was won by deliberately pricing at a loss.
He has squandered the £300 k on a flashy car, paying his mortgage via huge bonuses ect.
THEN, The Client pays Mr Crook for this fantastic building job with all this work that has been provided by Sub contractors.
Now the Clever bit.. HE REPAYS THE BANK its loan and interest out of the profit.
So The loan is clear, the bank knows he is good for the next one, however as he has squandered the first £300k and he priced at a loss, Mr Crook now has "invoices" from sub contractors to the value of say £400k and has No Money left to pay them, he bankrupts the company, starts another one and does the same again, from one town to the next, the banks know he is good for the money and fall over themselves to lend to him again .

I have to say that's a pretty clever business model.