Following our pricing proposal in relation to pursuing claims against directors for misuse of bounce back loans (“BBL”), Ashfords have successfully reached settlement with a former director in relation to a misfeasance claim arising from misuse of a bounce back loan. The company had a negligible turnover and the BBL appeared to have been obtained in breach of the BBL criteria, and was then transferred to a connected company controlled by director and his family.
We pursued claims against the director and the connected company to recover the funds. An initial low offer was received, with the director asserting an inability to pay.
Following negotiations, a settlement of in excess of two thirds of the amount claimed was reached without the need to issue proceedings. The director paid the sum agreed in full and final settlement within a month of the letter of claim being sent. The majority creditor in this case was the bank who provided the BBL, and so this settlement was a great result for the estate.
This case shows the potential to reach a quick settlement when pursuing misused BBLs for the benefit of creditors without the need to incur significant fees.
For further details on our offering in respect of fee approval or to recover BBLs, please contact a member of our Restructuring & Insolvency team who will be happy to discuss this with you.