company debt problems

badger78_2

I am the managing director of a limited company, my husband owns one ordinary £1 share, the other 99 shares remain unsold.

Our company brought an existing business around 10 months ago, and we have been struggling financially from day one. It has come to light that the previous owners accounts were not accurate (as had they shown what we now know we wouldnt have brought the business). our solicitor has suggested sueing for mis representation, inaccurate accounts etc, however this is very long and drawn out process and at any point the accounts etc can be argued by the previous owner and our claim thrown out.

We borrowed £64k as a start-up business loan from HSBC of which £5k has been repaid, we owe £35k on our overdraft which is now capped to the limit. The initial £64k is secured against our marital home (to which we have about £45k equity), and the £35k overdraft is unsecured. The loans are in the companys name. The business has a financial status of Goodwill, fixtures and fittings, lease and stock to the value of £79k. With the bank (finally) capping the overdraft and us trying our very best to sell the business - which is looking very unlikely,

My husband does not work for the company but is a self employed electrician. Is my husband liable for any of the outstanding debt being the only shareholder?if so what are the implications on him?

There is a financial value to the lease as we have 7 years remaining, our solictor has suggessted surrendering the remaining terms on the lease together with the rent deed deposit. The previous owner has several companies, one of which is a guarantor on our lease. the brake clause in the lease has expired. The landlord has the chattels on the mortgage, so can take hold of all the internal stock to reclaim any outstanding monies.
please can you advise me of our best solution for an end to our situation. Is bankruptcy an option?

poorandindenial

Hi there

There is an organisation called business debtline, I will get a link and post in a sec, it is worth giving them a call - sorry I don't have any personal experience or knowledge but all the best. Back in a mo with that link.

poorandindenial

Here it is: http://www.bdl.org.uk/

Bismarck

I appreciate the £35K overdraft is unsecured BUT did the bank not ask for any personal guarantee before they lent that much?

Sorry to hear of the complications...take care.