If a company cannot pay its debts when lawfully demanded, a bank or other senior creditor (somebody owed a serious amount of money) will appoint an Insolvency Practitioner to take control of the company and realise as much money as possible for all of the creditors (but mainly for us)
He will do this by a process of Administration, Recevership or Liquidation depending on how bad the situation is.
If there is a dispute as to which Insolvency Practitioner should be appointed (and in the real world this can be very significant - see my observation in the first paragraph above) there will be a vote of the creditors.
Bear in mind that Insolvency Practitioners are guns for hire and if there is no money in the kitty to pay their fees they will not touch it - see Official Receiver above for what happens then.
I have over the years appointed several Insolvency Practitioners when owed money by companies and believe me it can resemble the Wild West - people in tears, men in vans grabbing stuff they allegedly own and a general atmosphere close to a riot. Somebody will call the police but unless there is (excessive) physical violence they don't want to know and will not turn up.
Where is Clint Eastwood when you need him?
Bob Cory
Modified on 14/09/2019 at 13:13:56 by ℗ Bob Cory