INSOLVENCY & LAW
Latest Updates On High Street Group (HSG)
Business rescue . Debt recovery . Insolvency support
We work with creditors, company directors, and investors.
The primary purpose of seeking the appointment of an independent replacement liquidator was to secure effective disclosure of key documents required to investigate and pursue potential recovery claims, both within and beyond the estate.
A cooperative liquidator would have been able to:
- exercise statutory disclosure powers
- obtain documents from former office holders and relevant third parties
- facilitate investigation of potential claims more efficiently than reliance on contested court orders alone
Creditor support for the requisition
Noteholders representing in excess of £35 million in admitted claims supported the requisition and nomination of a replacement liquidator.
This level of support was well above the statutory 25 percent threshold required to validly requisition a meeting and nominate a new liquidator.
The level of engagement and coordination demonstrated by noteholders was significant and materially strengthened the process.
Nomination of Griffins Insolvency
Griffins Insolvency was the only firm nominated through the requisition process.
While Griffins engaged in preliminary discussions, they ultimately did not provide their consent to act at the point it was formally required. As a result, they could not be appointed.
This decision was taken by the firm and was outside the control of Insolvency & Law or the supporting noteholders.
Subsequent approach to Gibson Booth
Following Griffins’ decision, steps were taken promptly to avoid loss of momentum.
Gibson Booth was approached and indicated a willingness to act, providing initial commitment.
However, when formal consent was required, the firm declined to confirm its appointment.
Again, this outcome did not arise from any failure in the requisition process or lack of creditor support, but from a late-stage decision taken by the firm.
Why replacement liquidator was appointed
As a direct result of both nominated firms declining to consent at the final stage, no replacement liquidator could be appointed, despite the statutory requisition requirements having been fully met.
It is important to be clear that:
- the requisition was properly made
- creditor support was sufficient
- the inability to appoint arose solely from the nominated firms’ decisions not to act
While frustrating, this outcome does not invalidate the process that was pursued.
Return to the Official Receiver
In light of the above, and to avoid further delay, Insolvency & Law has reverted to the Official Receiver as the incumbent office holder.
It has been made clear that, in the absence of cooperation, Insolvency & Law is prepared to issue proceedings to compel disclosure through the High Court.
Contact our team at Insolvency & Law to book a confidential consultation now
Please do not respond to emails, letters, phone calls or other contact from any party claiming to recover your funds. It is more than likely a scam and you will certainly lose more money.
Only respond to Insolvency & Law, the Joint Administrators and the Joint Liquidators.
Even we have received correspondence purportedly from the Official Receiver’s office. This too was a scam.
Please be careful.
05/09/2023 at 13:54 pm
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