IPA exclusive industry update from Insolvency Insider
IPA Insolvency Practitioner newsletter, November 2023
A specially curated selection of the top stories for IPA members from Insolvency Insider Editor, Henry Louis. More information on all the stories and the link to subscribe to the newsletter is here.
Recent insolvencies
Axiom Ince Limited, an embattled national law firm which employed hundreds of people, entered administration on 26 October after the SRA closed the firm down to protect the interests of clients. The firm had recently acquired Ince & Co and Plexus Legal out of administration, when the SRA intervened into the practices of the firm’s managing partner and others for allegedly using client funds to buy both Ince and Plexus, as well as several other properties. Neil Bennett, Alex Cadwallader and Andrew Poxon of Leonard Curtis were appointed joint administrators. Barclays Security Trustee Limited has a registered charge against the company.
H.P.A.S. Limited (trading as Safestyle UK), a Bradford-based window and door manufacturer and retailer, entered administration on 30 October after facing a series of financial issues including rising inflation and poor consumer confidence. William Wright and Richard Harrison of Interpath Advisory were appointed joint administrators after a potential rescue deal for the company fell through. Almost 700 of the company’s employees across its manufacturing site in Wombwell and dozens of locations across the country have been made immediately redundant, with some kept on to wind down the business. Aurelius Finance Company Limited has a registered charge against the company.
Volta Trucks Limited, the UK arm of a Swedish-based startup that developed a bespoke all-electric urban truck, entered administration on 18 October. The company said the collapse of its battery supplier, US-based Proterra, left it unable to meet orders. Joanne Hewitt-Schembri and Mark Firmin of A&M were appointed joint administrators and are searching for a potential buyer to secure the future of the business. Aleq Limited has a registered charge against the company.
Insights
David Leibowitz, Laura Edwards and Nick Payne of Mishcon de Reya recap a case which demonstrates that creditors with the benefit of a third-party debt order are ostensibly in a better position than other unsecured creditors of an insolvent estate.
The team at DLA Piper explains why administrators should not treat the Supreme Court’s recent decision on the potential criminal liability of administrators as a green light to flagrantly disregard the provisions of the Trade Union and Labour Relations (Consolidation) Act 1992.
Natalie Colaluca of Pinsent Masons summarises a recent decision which will be welcomed by purchasers of insolvent companies who seek to recover deposits where a final deal cannot be agreed, serving as a warning to administrators to carefully draft heads of terms to include indemnities to cover liabilities.
Please note that guest content does not necessarily represent the views of the IPA.