Using Liquidated Company’s left Assets?
Have you spoken with a Liquidator who wants you to sign Appointment Documents NOW – without giving you time to think if this course of action is right for your circumstances?
This almost happened to one of our clients. Discover the pitfalls of appointing a liquidator BEFORE you’ve checked if there are any assets you need that are still in your company. Luckily for this Director, he got us involved before his wife banished him to the couch!
We were introduced to Rob, a Director who had placed his Company into Liquidation. Included as part of his business’s assets were 2 motor vehicles used by Rob and his wife, Cecilia on a daily basis. Having those cars were essential to their work and family life.
Can motor vehicles be saved?
Before we met Rob, the Liquidator had asked for the motor vehicles to be returned so they could be sold at auction to help pay creditors.
Rob didn’t know where to turn but knew he didn’t want to give up the two vehicles. After we had chatted with Rob, we contacted the Liquidator to ask for time to investigate Rob’s situation and develop a mutually beneficial offer. The Liquidator agreed and gave us 2 weeks.
We conducted a Redbook valuation of both motor vehicles and compared the valuation amounts with the payout figure provided by the financier. We discovered one of the vehicles didn’t have any remaining equity. We wrote to the Liquidator in relation to our findings and requested the Liquidator disclaim this vehicle. The vehicle was disclaimed within 3 days.
On the second motor vehicle, we found the maximum available equity was $5,000. However, the costs associated with selling the vehicle had not been considered by the Liquidator. Once the selling costs were included, the total equity available was reduced to $3,198.
We wrote to the Liquidator again, noting Rob had personally provided $10,000 to the Liquidator to undertake the Liquidation. We pointed out that such funds should be apportioned to cover the sale of the motor vehicles to the Director, rather than included as the Director’s contribution to the Liquidator’s fees. Within 2 days, the Liquidator disclaimed the second motor vehicle.
We then advised Rob that the two financial institutions he’d used to purchase the vehicles, didn’t like to be paid under the personal guarantee of a Director while the finance contracts were in the name of a Company undergoing Liquidation. On this basis, we introduced Rob to a finance broker who arranged refinancing for both motor vehicles in the name of a new Company which our client’s wife had set up.
How would you answer the following questions?
Have you left assets in a Company that’s been placed into Liquidation?
Would you like to purchase them back?
Did the Liquidator assure you that you can buy the assets back before his/her appointment?
We’re here to show you how to sell the Company’s assets to yourself – LEGALLY, ETHICALLY and BEFORE you put the Company into Liquidation.
Can you identify with elements of this case study? If so, book an appointment with us. For a small investment of $795 + GST we will thoroughly investigate your situation to examine your options and show you how to retain your important personal assets if your Company hits financial problems.
If you engage LemonAide to implement your unique strategy, this initial investment will be credited back to you as we guide you through the entire process. We’ll also assist by finding unique solutions to help your business survive and thrive in the future.
If your Company is struggling with debt, give us a call today. You may be surprised by the options that are available to you.