Company in receivership owes a debt for trespass and nuisance...

factfinding8888

Morning all, I hope this is incompetent the correct area. 

If a (building) company is in receivership and then receives a new debt (for trespass and nuisance), do they have to pay it?

Many thanks!

MobileSaver

factfinding8888 said:

If a (building) company is in receivership and then receives a new debt (for trespass and nuisance), do they have to pay it?

I would say that it is a moot point as companies go into receivership because they haven't paid an existing debt.

In probably 99 times out of a 100 the company will be insolvent anyway so while technically the debt is owed the company won't be able to pay it even if they wanted to.

Stubod

..no, as they will not have any money...

eddddy

Presumably a receiver / administrator has been appointed - so you would send the bill to them, and join the list of unsecured creditors.

And for example, in simple terms, if the administrators found the company has total liabilities of £500k, and total assets of £50k - each unsecured creditor would get 10% of what they were owed.



Obviously, that assumes that the administrators agree that the money is owed. Do you have a court ruling saying that the company owes you damages for for trespass and nuisance?

Keep_pedalling

Based on your previous thread you were claiming from the developer’s insurer, the developer going bust does not effect that ongoing claim. 

MyRealNameToo

factfinding8888 said:

If a (building) company is in receivership and then receives a new debt (for trespass and nuisance), do they have to pay it?

You will be one of many 6th ranked creditors. The receiver will have to pay off the 1-5 ranked creditors first and only if there is anything left will that be distributed amongst 6th ranking which will be done proportionally to the debt. 

Generally you are doing fairly well if you get 5p per £1 owed and in many cases 6th rank will get nothing as you are at the bottom of the pecking order with shareholders being the only ones below and that will only realistically occur in a cashflow based insolvency. 

factfinding8888

Thank you for your replies. 

It turns out that the company were uninsured. Hence, why I started legal proceedings and now have CCJs against the owner of the property and the development company, which are basically the same people. I have now turned one of the CCjs into a High Court Writ to be enforced.

MyRealNameToo

factfinding8888 said:

Thank you for your replies. 

It turns out that the company were uninsured. Hence, why I started legal proceedings and now have CCJs against the owner of the property and the development company, which are basically the same people. I have now turned one of the CCjs into a High Court Writ to be enforced.

Burning a fair amount of money to get 5% back if you're lucky. 

Isthisforreal99

Do the last company house accounts show any assets?

I suspect you are now wasting your time and money on this.

user1977

I fully expect any assets to be taken by the banks and nothing for the unsecured creditors.

factfinding8888

The main asset I can find is the property attached to mine. Should I bother putting a charging order on that property?