Liquidation, Redundancy and Immoral Employer!

[Bumble53]

So since my husband was made redundant he has still not received a P45 or more worryingly a CN code so that he can submit a claim for redundancy pay. I have been checking Companies House and The Gazette for evidence as to the company being wound up but nothing has been noted as yet. Does anyone know if there is a specific time frame in terms of how the insolvency/winding up is managed? My husband has had some phone calls from other companies who have been made aware of the situation, we think because as creditors they have been written to advising that the company is entering liquidation; so it does seem that some sort of process is being followed, but we're just not sure what it is and when/if to be be worried that no CN code has yet been provided.

Many thanks

[atticus]

If it's a Creditors Voluntary Liquidation, the liquidation only commences when the creditors meeting has been held. This is when the liquidator is formally appointed. 21 days notice of the meeting has to be given, so it is possible that the meeting has not yet been held.

[Bumble53]

Thanks Atticus; I'm not sure if it was/is creditors voluntary liquidation - the director made the decision himself to liquidate the company, but I read somewhere I think that the creditors have to agree? - is that correct and/or part of the process that you are referring to?

[atticus]

Yes, the creditors have to agree. Hence the need to call a creditors meeting, as stated in post #17. It is unlikely to be any other form of voluntary liquidation, given the apparent insolvency of the company.

[Bumble53]

So what happens if the creditors don't agree? Does that change the situation for staff/government redundancy payments?

[ULA]

When a company is liquidated, employees turn into unsecured creditors, meaning they will be paid after secured and preferential creditors through the sale of assets by the liquidator. If there are no funds available after these creditors have been paid, employees can then claim redundancy through the Redundancy Payment Service as set out in post #6

Your husband has up to 6 months from redundancy to submit the form RP1 which is used to claim redundancy payments via the RPS.

[atticus]

So what happens if the creditors don't agree? Does that change the situation for staff/government redundancy payments?

The purpose of the creditors meeting is to appoint the liquidator. This may be the person nominated by the directors, or the creditors may override that choice and appoint someone else.

[Bumble53]

Thank you both. I'm still a little confused, sorry. As my husband is now a creditor then, should he and the other employees not be invited to that creditors meeting? I know that there is a 6 month time limit on submitting an RP1. I don't know how long the whole liquidation process takes, but at what point is it likely to be determined whether or not there is any money to pay the employees; do they have to submit some sort of claim to the insolvency practitioner? What I'm getting at is that if the process is drawn out without any confirmation of whether or not employees will get any money from the company itself, and then 6 months pass, it's then too late to claim from the Government. But the government aren't going to want to pay out until it is formally determined that the company can't?

Sorry for all the questions

[atticus]

H can contact the Insolvency Practitioner, stating that he is a creditor, and requesting details of the creditors meeting and copies of the directors' statement of affairs and all other information provided to creditors.

[ULA]

Since it seems from several of your posts liquidators have been appointed has your husband contacted them to ask when they will be getting the information they need to claim their owed monies?

[ULA]

atticus we posted at the same time but essentially the same advice to the OP.

[atticus]

OP seems to say administrator when she means liquidator.

[Bumble53]

I don't think we do know who the liquidators are. It seems the director sought advice from a firm of insolvency practitioners. They then came to the offices a couple of days later and said the company was going into liquidation and was closing down immediately and all were out of a job. But they also said that they are not the liquidators, they had just advised the director. I guess we need to ring them and ask them who is actually handling the liquidation.

[ULA]

Bumble53 that would certainly be the next thing to do and seen what information they can provide your husband.

You know where we are if that leads to further questions.

[Bumble53]

My husband spoke with the IP company today; they now say that they are the liquidators. They say that the company enters formal liquidation at 11.59pm tonight and that following this a CN number should be generated and available within 48 hours. So fingers crossed that this is the case and he can submit his claim