Posts Tagged ‘debt’
Informal Corporate Insolvency Debt Costs Creditors £5bn Every Year
An investigation into millions of collapsed British companies has found that every year, around £5bn of unpaid ‘hidden debt’ is left behind by businesses that close down without going through any formal insolvency procedure.
Read MoreHMRC Exhausted from Issuing Winding-Up Petitions
Last month’s revelation that HMRC resources are stretched so thinly the tax collector is no longer able to supply insolvency practitioners (IPs) with data, is a sure sign the British economy is bankrupt.
Read MoreWhy Didn’t Insolvency Service Prosecute MG Rover’s Phoenix Four?
The former directors of MG Rover Group (MGRG), who pocketed over £40 million as the company spiralled into administration, should have been punished with lengthy disqualifications forcing them into early retirement and out of business management. Instead, Peter Beale, John Towers, Nick Stephenson and John Edwards – known as the ‘Phoenix Four’ – received bans…
Read MorePremier League Boss Tries and Fails to Defend Football Insolvency Rules
Premier League head Richard Scudamore has attempted to defend the football creditors’ rule, following a lawsuit filed by Her Majesty’s Revenue and Customs (HMRC). HMRC, quite correctly, claim the rule on paying soccer creditors first is ‘unfair, unlawful and unacceptable.’
Read MoreWhat’s More Important: Managing Debt or Bad Practice?
Last year, I advised a company that went bust owing £100,000. The Insolvency Service sought to have the company’s director disqualified, but he couldn’t understand why as his liabilities dwarfed the sums owed by other companies. I explained that he faced prosecution because of his conduct rather than the size of his debt. You may…
Read MoreLiverpool FC Still on Rocky Ground Despite Buyout
Fans celebrating the takeover of Liverpool should be concerned that new owner John W Henry never offered a written guarantee promising not to load the football club with debt. Before the buyout, Henry and his 16 partners in New England Sports Ventures (NESV) made verbal commitments agreeing to pay £200m owed to Royal Bank of…
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