As an aside, MVL Online a few months ago migrated to the route of client withdrawing the cash in advance. This is temporarily a loan, then MVLO declare distributions in specie over the course of the liquidation to clear the loan. A few benefits from client perspective:
- client gets all the cash straight away. It takes some of the big banks multiple months to process liquidator requests, which would mean painful delays to clients getting any cash,
- client retains control of the company's cash the whole time (at no point do we touch it).
On the negative side:
- the bond is still payable, seems this causes more client annoyance than it used to. Legally if there's a big loan to shareholders following liquidator appointment, the liquidator could call in that debt, and theoretically then misappropriate funds. The new route doesn't avoid the bond being payable.
- bizarrely clients were always super thankful when we made big payments to them (even though it was "their" money!)...with the new route clients are a bit more "meh!".
- client gets all the cash straight away. It takes some of the big banks multiple months to process liquidator requests, which would mean painful delays to clients getting any cash,
- client retains control of the company's cash the whole time (at no point do we touch it).
On the negative side:
- the bond is still payable, seems this causes more client annoyance than it used to. Legally if there's a big loan to shareholders following liquidator appointment, the liquidator could call in that debt, and theoretically then misappropriate funds. The new route doesn't avoid the bond being payable.
- bizarrely clients were always super thankful when we made big payments to them (even though it was "their" money!)...with the new route clients are a bit more "meh!".
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