We suspect that every supplier has felt the pain of a distributor liquidation, and yet again there is another instance where the unsecured creditors seem to begetting nothing.

We are one of the numerous companies owed cash by Venture Innovations UK Ltd , and to add insult to injury, we have today received a report on their demise. They ceased trading 6 months ago with ?270K of debts, of which ?250K were unsecured creditors, and c. ?150K of that owed to the Trade.

After realisations and cash, there is about ?100,000, but to sort this mess out the liquidator gets ?90,000,and preferential creditors get ?9K leaving zero for anyone else. How can this be a fair system?

A number of companies will be suffering substantially worse than us, and as far as we can see only one mob are benefitting here, and it’s not the people who lost their cash!

 

Published on: March 23rd, 2011