Simon Duncan, lawyer at London law firm Moon Beever writes for Recovery magazine on how recent cases have seen claims brought against former administrators. He explores whether the UK will be seeing more of these cases to come.
It is vital that whoever the bank appoints has the interests of the creditors and members in mind, rather than the interests of the bank, in order to protect themselves from this type of claim. Read more from his article in Recovery magazine below:
“The report of RBS Group’s treatment of SME customers referred to the Global Restructuring Group (the GRG report), together with the Financial Conduct Authority’s interest rate hedging product review (the FCA review), have shown widespread use of the administration process by banks from 2008 to 2013.
Typically, the administrators will have been appointed from a small number of large insolvency practices that are ‘bank panel’ firms. Where the creditors of the companies pushed into insolvency are dissatisfied with the conduct of the banks’ appointees, they can seek to restore the company into liquidation. They can then appoint an independent liquidator who can review the conduct of the former administrators. Applications of this sort are becoming more frequent, particularly if it appears that the bank’s appointees have done little more than look after the bank’s interests, rather than the interests of any other creditors, or the members.”
To find out more about this article, or to contact Simon Duncan on an insolvency matter, click here to email, or phone 0207 539 4145.