Insolvency Items in the News: UB40, trouble in the Midlands and Maxwell woes
The BBC are reporting that UB40 are facing bankruptcy petitions following some problems at the band's record company, DEP International. UB40 may have to soon collect UB40 forms if the petitions are successful. This story accords with a piece in the Birmingham Post which notes that Midlanders are generally struggling with personal over-indebtedness. The article draws on some R3 research which notes that: “Nearly half of people (46 per cent) say they struggle to make it to payday, which equates to more than 21 million individuals across the UK."
Matthew Hammond, a partner at PwC in the Midlands and R3 officeholder is quoted as saying: “It is extremely worrying that such a large percentage of people nationally are struggling to make it to payday and I know from professional experience that this is also the case here in the region. Many local individuals are using short-term loans to cover the gap in their finances. These loans tend to have high interest rates and often those who use this type of credit find themselves in a vicious debt cycle, particularly if they experience a sudden job loss. If individuals are experiencing difficulty in meeting their financial obligations, then it is important that they seek financial advice before taking out further lines of credit.”
Finally, the Insolvency Service have reported the details of Mr Kevin Maxwell's latest brush with the insolvency laws. Mr Maxwell has now been disqualified for 8 years. The story notes:
"Kevin Maxwell and two fellow directors of a construction and maintenance works company based in Manchester, have been disqualified for over 20 years following an investigation by The Insolvency Service. The company, which held several government and local authority contracts, had its head office in Salford Quays and three other offices in Scotland, Newcastle and Bristol. The company failed in July 2007 with a deficiency of over £10m.
Kevin Francis Herbert Maxwell, 52, of Park Lane, London, David Dawson, 61 of Cheadle, Staffordshire and David Gordon Maclean, 47 of Simonstone, Lancashire each offered company director disqualification undertakings, the last of which was accepted on the first day of what was listed as a 15 day trial in the High Court, London. The undertakings mean they are each banned from managing or in any way controlling a company or being directors for the duration of their disqualifications.
Maxwell and Dawson are each disqualified for eight years and Maclean for four-and-a-half years. Dawson’s disqualification commences on 24 June 2011 and Maxwell and Mclean’s 8 July 2011."
Commenting on the case, Tony Wilkin, The Insolvency Service’s Director of Intelligence and Enforcement said:
“This was a serious case in which creditors were denied access to significant sums, combined with a disregard for the directors’ duty to keep records of the company’s transactions. The disqualifications should serve as a reminder; The Insolvency Service will investigate unacceptable conduct by company directors and any consequential enforcement action may result in lengthy periods of disqualification as the directors of Syncro have found out.”
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