Investigation into international food manufacturer

Maximising asset realisations in an administration by bringing claims under the insolvency act 1986 and companies act 2006.

Situation

Mazars were appointed as Administrators of a large manufacturer of food products, on both a UK and international scale.

Following a period of trading, Mazars achieved recoveries of circa £2.5m, including a sale of the business and assets of the company.

The Contentious Insolvency Team were subsequently engaged to determine whether there were any potential rights of action that could result in additional recoveries for the benefit of creditors.

Approach

An information gathering exercise was undertaken, which led to the recovery of the company’s books and records, all accounting data and information from third parties.

A full record of bank statements was obtained from the company’s bankers and processed through specialist investigation software to allow a forensic analysis to be conducted by the team’s experienced investigators.

The investigations resulted in the identification of claims under the Insolvency Act 1986 / Companies Act 2006 totalling in excess of £2m.

Outcome

As a result of the respondent entering into an insolvency process, a full recovery of the claims identified was not possible, however, the investigations conducted by the Contentious Insolvency Team resulted in an additional £500,000 recovery for the benefit of the insolvent estate.

Contentious Insolvency case studies

Our contentious team has extensive experience enhancing recoveries for insolvent estates by undertaking forensic investigations and bringing claims under the Insolvency Act 1986 / Companies Act 2006. The case studies below demonstrate our capabilities and experience.

Forensic investigation & compliance

Harnessing cutting-edge technology in disputes and investigations

Insolvent Solutions

In certain circumstances, an insolvency process is unavoidable or may be the most appropriate strategy to deliver the best outcome for creditors and other stakeholders. We will support you in evaluating strategies to restructure that may preserve the business and maximise asset realisations and support you in preparing for the insolvency process....