Post by Fredxx
A friend is owed some money from a company.
It appears poorly run in that there are accounts that have been
outstanding for a few months.
The director/owner has told my friend the account has been frozen
and a 'new company' started. I assume precipitated by Companies
House, or possibly HMRC.
I have checked with Companies House and confirm a form has been
completed by the director. The same form says that copies of the
application must be sent to notifiable parties, ie creditors.
What should my friend do? There is a chance there is still money
in the account due to how payments may have run-on.
Has the company's account been frozen by going into liquidation or have
the directors simply declared they're not to pass any more transactions
through their bank account?
The existence of a new company (which sounds like it may be a phoenix
company buying the original company's assets and perhaps trading name)
is a bit of a red herring unless it has, unexpectedly, agreed to settle
debts to the previous company's creditors.
I tend to think your friend is being spun a line. Perhaps there's
full blown liquidation on its way and the company is currently trying
to buy time until its debts are behind the protection of a liquidator.
If your friend has supplied goods then he might check if he made a
provision in his standard small print to retain title to his goods