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As economic pressures continue to bear down on businesses, liquidations are reaching significant levels.Image: SuppliedIn a recent interview, PJ Veldhuizen,
A property company has been ordered to pay a former employee nearly £21,000 for unfair dismissal.
But it is unclear how the award will be paid as the Scottish company went into liquidation last year and no longer trades, even though just two years ago it reported an turnover £11.4 million that had increased 33% that year.
One of its directors, The Neg has discovered, has links to several other property firms in Scotland including a lettings agency.
An employment tribunal in Scotland ordered the compensation after hearing the facts of the case involving Sandstone UK Property Investment Ltd and an employee, Angela Kirkwood.
Loss of earnings
Judge Jones said: “The respondent [Sandstone] entered into compulsory liquidation…
As economic pressures continue to bear down on businesses, liquidations are reaching significant levels.
Image: Supplied
In a recent interview, PJ Veldhuizen, managing director of specialist commercial law firm Gillan & Veldhuizen Inc, highlighted that liquidations remain prevalent in the post-Covid landscape. “In January 2024 alone, there was a 34.6% increase in business liquidations compared to the previous year, with the financing, insurance and real estate sectors hit the hardest.”
The liquidation process
Depending on the severity of the liquidity problem, the business may consider various legal options but liquidation is more often than not the next step. There are two types of liquidation:
More than 25,000 company insolvencies were registered in 2023, the highest number since 1993, as firms struggled with rising costs and interest rates.
Companies faced higher energy bills, while consumer spending was squeezed by the cost of living crisis.
The new figures show one in 186 active firms went bust in 2023.
Scotland and Northern Ireland recorded the highest numbers of company insolvencies last year since 2012 and 2019 respectively, although the nations have different bankruptcy laws to England and Wales.
Julie Palmer, partner at insolvency specialist Begbies Traynor, said thousands of businesses had gone bust because of a “perfect storm for financial distress”.
This included “interest rates at levels we haven’t seen…
The tribunal held that approval of the resolution plan cannot be subjected to the ongoing arbitral proceedings between the parties
The National Company Law Tribunal (NCLT) of Bengaluru bench has held that all claims including subject matter of ongoing arbitration proceedings will stand extinguished after the approval of the Resolution Plan under Insolvency Bankruptcy Code (IBC), 2016.
In February 2019, Vikas Telecom Private Limited (Developer/VTPL) appointed Synergy Property Development Services Pvt. Ltd. (Synergy) [currently Colliers International (India) Property Services Limited’s (Colliers)] as the Project Management Consultant of Parcel 3A & MLCP at Embassy Tech Village, Devarabisanahalli Village, Bangalore (Project).
After rising from notoriety to public office, a leading voice in the infamous fight against plans for a mosque in country Victoria has been declared bankrupt and has quit her position as a city councillor.
But she has quit after a difficult two years featuring internal disputes, personal financial problems, and a fight against the sale of her home by the Sheriff’s Office.
Tesla Inc.TSLA CEO Elon Musk quipped on X that Microsoft Corp.MSFT co-founder Bill Gates could face bankruptcy if Tesla becomes “the world’s most valuable company by far,” escalating their long-running dispute over Gates’ short position in the electric vehicle maker.
What Happened: The statement comes as Tesla’s market capitalization stands at $1.251 trillion, still significantly behind Apple Inc. AAPL at $3.729 trillion. To achieve the top position, Tesla would need to grow by nearly 200%.
The conflict between the two billionaires stems from Gates’ undisclosed short position in Tesla stock, which reportedly resulted in a $1.5 billion loss for Gates, according to Walter Isaacson’s 2023 biography of Musk.
Bankruptcy is the busiest federal court in the U.S. Last year, more than 200 companies with at least $50 million in liabilities filed for bankruptcy, according to Bloomberg. That’s the second most since just after the Great Recession in 2009.
A new book argues that bankruptcy has become a “Swiss Army knife” or “escape hatch” for big companies to get out of all kinds of trouble — even those beyond financial distress.
Melissa Jacoby is the author of “Unjust Debts: How Our Bankruptcy System Makes America More Unequal.” Jacoby, a law professor at the University of North Carolina at Chapel Hill, discussed the divergence between corporate and individual bankruptcy with “Marketplace Morning…
Mantri Developers was admitted to the Corporate Insolvency Resolution Process (CIRP) in 2023 on a petition by India Bulls alleging a default of over ₹500 crores. Owing to this, NCLT had earlier disposed of a plea by the bank, by allowing Indian Bank to intervene in the CIRP process initiated by India Bulls.
However, Mantri Developers subsequently reached a settlement with India Bulls and ultimately got the latter’s plea was withdrawn.
“Asa logical corollary, the main CP(IB) No.94/BB/2022 on the file of the ‘Adjudicating Authority’/‘National Company law Tribunal’ Bengaluru Bench is ‘Dismissed'”, the National Company Law Appellate Tribunal (NCLAT) had held in the matter.
This led Indian Bank to move the NCLT again to revive…
The government will submit a two-pronged debt relief plan to the Cabinet for approval on Wednesday (December 11).
The proposed measures aim to alleviate the financial burden on millions of individuals and small businesses struggling with debt.
Debt Relief Package 1: Interest waiver for struggling borrowers
The first package targets borrowers with non-performing loans (NPLs) of less than a year. Interest on SME, car, and home loans will be waived for borrowers who commit to a 12-month repayment plan. In return, borrowers must adhere to strict repayment terms. The government and commercial banks will cover a portion of the interest costs to facilitate this relief measure.
The federal government has offered a financial lifeline to Rex as its administrators seek to extend their appointment.
$80 million in financing will be provided to keep the business and its regional services afloat as EY Australia continues to search for a buyer, with the administrator applying to the Federal Court to extend the voluntary administration to 30 June 2025.
The future of popular paint-and-sip business Pinot & Picasso is uncertain after its master franchisor entered voluntary administration last week.
However, the administrator of the business has confirmed to SmartCompany it will continue to trade during the voluntary administration process.
Veuve Ventures Pty Ltd and seven related entities appointed Sule Arnautovic of Salea Advisory to act as voluntary administrator on Thursday, according to the Australian Securities and Investments Commission.
The entities act as master franchisors for 42 Pinot & Picasso venues across Australia and New Zealand, and operate seven company-owned stores.
Pinot & Picasso bills itself as a “relaxing, beginner-friendly paint and sip experience” for parties…
