A liquidator is making a claim against you.
A demand from a liquidator, for a voidable transaction, an unfair preference or insolvent trading, should not be ignored, and should not be paid reflexively either. Many claims are weaker than the letter suggests, and most resolve without a hearing.
Right now
- Note the deadline and respond through lawyers, not directly.
- Gather the records: the transactions in question, what you knew of the company's position at the time, and what value moved in each direction.
- Understand the defences. Good faith, valuable consideration, running accounts and safe harbour can each answer a claim, depending on the facts.
- Check your insurance. If you are a director, a D&O policy may respond to the claim and to your costs.
What we do
We defend clawback and insolvent trading claims, put the liquidator to proof where the claim overreaches, and negotiate from an informed position, which is where the better settlements are made.
Read more about our Insolvency and Asset Recovery practice
Talk to us today
All consultations are private and confidential. For urgent matters please call +61 3 8676 7929. Telephone is answered out of hours. Contact us
