Ltd Company Insolvency Cost

ES19901990

Bookworm105 said:

ES19901990 said:

Hi sorry if I’ve not been clear here.

The equipment is leased and owned from the company I lease from. I have signed a personal guarantee for the lease until it is returned.

Apologies the loan is with HSBC not a DLA. I owe the company no money. (The DLA has the company owing me around £30000).

then the liquidator has, as you originally said, a shortfall of >£3,000+
After having paid themselves, they will need to negotiate with creditors to reach a settlement discount, both HSBC and HMRC (at least).
Looks like you can forget about the money owed to you as that will never be financed in your liquidation given the asset values you quote. The leased equipment is irrelevant, unless there is a penalty clause for "early" return of it payable by the company.

Thank you, so first of all the Liquidator will pay himself? Then look to negeotiate with HSBC and HMRC?

The lease equipment does have a personal guarantee on it so I would still be liable for the lease payments although it is a lease I would never own the equipment?

Bookworm105

ES19901990 said:

Bookworm105 said:

ES19901990 said:

Hi sorry if I’ve not been clear here.

The equipment is leased and owned from the company I lease from. I have signed a personal guarantee for the lease until it is returned.

Apologies the loan is with HSBC not a DLA. I owe the company no money. (The DLA has the company owing me around £30000).

then the liquidator has, as you originally said, a shortfall of >£3,000+
After having paid themselves, they will need to negotiate with creditors to reach a settlement discount, both HSBC and HMRC (at least).
Looks like you can forget about the money owed to you as that will never be financed in your liquidation given the asset values you quote. The leased equipment is irrelevant, unless there is a penalty clause for "early" return of it payable by the company.

Thank you, so first of all the Liquidator will pay himself? Then look to negeotiate with HSBC and HMRC?

The lease equipment does have a personal guarantee on it so I would still be liable for the lease payments although it is a lease I would never own the equipment?

yes the liquidator, for obvious reasons, has a legal first call on the money needed to pay their own bill.
After that there is a set order from 2 (next after the liquidator) to 7 (last) in which anyone else will be paid from whatever money is still available. The liquidator has a duty to pay off each group in full before moving down the list to the next group. Clearly therefore a point will occur where the money has run out and people may go hungry, eg be offered pence in the £, or nothing!

1. Liquidator fees and expenses
2. Secured creditors with a fixed charge (often includes banks as they are most likely to have attached conditions to the loans they made )
3. Preferential creditors (eg employee's pay - subject to certain limits)
4. Secured creditors with a floating charge (eg stock where the supplier has right of repossession if unpaid)
5. Unsecured creditors - for example: customers deposits, general suppliers including HMRC, and aspects of  other claims by employees 
6. Connected unsecured creditors for example employees who are owed expense claims or directors with loans made to the company
7. Shareholders

we cannot see your equipment lease so we have no idea if it is an operating lease or a financing lease and thus its terms re ownership. The requirement for you to make payment, including from your guarantee could, I am guessing for example, mean the lease company is expecting to receive x number of payments (ie interest), whether your company is still using the equipment or not - go read your lease to understand what you signed up for .... ! 

ES19901990

Just as a follow up to this. what is the best point to contact the insolvency agent. At the moment the company still has money in the account from a VAT refund and from the money I have put in? 

But it is obvious it will run out just after xmas, with no more to put in?

Bookworm105

ES19901990 said:

Just as a follow up to this. what is the best point to contact the insolvency agent. At the moment the company still has money in the account from a VAT refund and from the money I have put in? 
.

"Your company is insolvent when it cannot pay its debts on time or has more liabilities than assets on its balance sheet."
it seems that you know the company is/will be insolvent and therefore, as a director, you have a legal duty to act to secure the company for the "benefit" of its creditors (not shareholders) - in this case, that means appoint a liquidator
Director information hub: Insolvency - GOV.UK
Director information hub: Director duties upon insolvency - GOV.UK