Veritas-IT - unpaid invoices.....

[bigD]

What do you mean by "tucked up"? Are you suggesting that in some the Veritas directors are going to buy the book via another company and continue the relationships with the client base?

That sounds a little far fetched to me. I am quite sure there are laws to protect against these kinds of things. Also I am quite sure that the contractors would leave the instant they found out about the link...

Nope, this isn't far fetched. I know of a few agencies that have gone into administration for the ex-directors to then buy the assets, i.e. contracts, for next to nothing. It's not illegal.

[thescoobydoo]

I am not suggesting anything I am saying that as I was refused to be allowed to register my interest in purchasing the company even though I was able to offer BDO a letter stating a line of credit from a bank in excess of the purchase price that has notionally been agreed, also a client of mine who was at least able to register their interest never received any paperwork and despite constant hassling of both BDO and the directors and has never been offered the chance to review the books.

This leads me to believe that the company has done a deal with BDO, especially as the team headed by William Turner is not an administration team but a refinancing team.

Also ever since Sept 20th there have been rumours that the directors have been trying to do a "phoenix" if you think about it logically the debt is £1.1 million of which only £500 000 is owed to primary creditors so if you can discharge the other £600 000 debt by either simply not paying it or letting the company go into liquidation rather than administration then with a forward order book of £800 000 you can turn a profit of £300 000 and all you need is a decent legal team to chase that money down, how much would you pay for a business like that? Also who is in the best position to chase the money down than the directors who are already invoicing for people who have only been on interview or not yet started?

They have a lifestyle to maintain which is beyond their means they need the money, they will do what it takes, lets be fair they ran a company into the ground which can only be profitable, how can you lose money when permanent fees are 100% to the company??

[bubblensqueek]

Time For A Reality Check

It is entirely possible that the old Veritas directors buy the remains of the company from the administrators and start again.

Contractors are unsecured creditors. We are bottom of the pile as far as getting any money back is concerned.

I would have thought that by now Veritas was in breach of contract by not paying contractors and so those with ongoing contracts could give notice and be free of future obligations.

Hands up all those who want to work for Jason Giller again....

The new buyer that seems to be in the pipeline may or may not take on the old Veritas debts. I can't see it happening somehow myself.

In future we all have to do our homework and run checks on agencies using the online facilities from Companies House.

[Still_in_the_dark]

I am not suggesting anything I am saying that as I was refused to be allowed to register my interest in purchasing the company even though I was able to offer BDO a letter stating a line of credit from a bank in excess of the purchase price that has notionally been agreed, also a client of mine who was at least able to register their interest never received any paperwork and despite constant hassling of both BDO and the directors and has never been offered the chance to review the books.

This leads me to believe that the company has done a deal with BDO, especially as the team headed by William Turner is not an administration team but a refinancing team.

Also ever since Sept 20th there have been rumours that the directors have been trying to do a "phoenix" if you think about it logically the debt is £1.1 million of which only £500 000 is owed to primary creditors so if you can discharge the other £600 000 debt by either simply not paying it or letting the company go into liquidation rather than administration then with a forward order book of £800 000 you can turn a profit of £300 000 and all you need is a decent legal team to chase that money down, how much would you pay for a business like that? Also who is in the best position to chase the money down than the directors who are already invoicing for people who have only been on interview or not yet started?

They have a lifestyle to maintain which is beyond their means they need the money, they will do what it takes, lets be fair they ran a company into the ground which can only be profitable, how can you lose money when permanent fees are 100% to the company??

It pains me to say but I agree with you fella. There is definately something fishy going on and a 'pheonix' seems the most appropriate answer - specially knowing the two amigos and their lap dog.

I'm going to wait until they have come out from behind there disguises and then act in the necessary manner. I'll email you my ideas when the time is right.

[[email protected]]

veritas /administration

FYI:

I have just phoned bdo (at 13:00 today) and was told the veritas is not in administration at this time. But was told that something should be
announced within the next 2 days and to phone back then


BDO Stoy Hayward LLP
Prospect Place
85 Great North Road
Hatfield
Herts AL9 5BS

+44 (0) 1707 255 888

[qrame]

Ten More Days

Spoke with BDO late this afternoon. I was informed that the moratorium has been extended for another ten days. Another ten days of this sham. I am out of this.

[Whiskas]

getting desperate!

I've just joined this forum as I am getting pretty worried about what our position is legally for work we are doing now. Someone posted a suggestion that any work we're doing now could potentially still be collected by the administrators.

I'm at a loss at what the options are here. I guess we can write to Veritas stating that they are in breach of contract and therefore the contract is considered void - we would then be free to work for the same client regardless of the 6 month no staff poaching clause. But then if Veritas get bought by a third party then we would lose the option of any bad debt being paid by that company, as our contracts are void?

Or we wait and are unable to work at all, as our contracts with Veritas are still legally binding.

How on earth are we supposed to move forward?

Can someone tell me how they are handling this? There must be hundreds of us in the same boat.

I spoke to a solicitor about the bad debt position, and he said it would cost about £13k to take them to court and we still would potentially not get the money back (as there is no money). But, if we clubbed together (I'm assuming Veritas issues fairly standard contracts to us all and therefore our cases would be similar) this fee could be manageable and would at least mean we have put up a fight...I can't stand to think that they can do this to people and just get away with it because none of us can afford to take them to court...

[bigD]

Spoke with BDO late this afternoon. I was informed that the moratorium has been extended for another ten days. Another ten days of this sham. I am out of this.

I think Veritas are going into administration today and they have a buyer who should contact us over the next few days. If this is the case, we may have some bargining power with the new owner of the 'contract book'. I guess it also depeneds if your client wants to do business with them. According to BDO none of the directors of Veritas are involved in this new comapny. Time will tell.

[Whiskas]

they are now in administration

BDO have informed me they have now been appointed. They also said that a third party company is in the process of signing the legal paperwork to take over the assets and this will be completed this afternoon.

They also told me that the 3rd party company has only bought the assets, not the debt.

What are we supposed to do now? Does that mean we legally are obliged to go with the new company? I'd really like to know what action the rest of you guys are taking, as I'm at a loss for what to do...

[maxs567]

how we've handled the situation

I've just joined this forum as I am getting pretty worried about what our position is legally for work we are doing now. Someone posted a suggestion that any work we're doing now could potentially still be collected by the administrators.

I'm at a loss at what the options are here. I guess we can write to Veritas stating that they are in breach of contract and therefore the contract is considered void - we would then be free to work for the same client regardless of the 6 month no staff poaching clause. But then if Veritas get bought by a third party then we would lose the option of any bad debt being paid by that company, as our contracts are void?

Or we wait and are unable to work at all, as our contracts with Veritas are still legally binding.

My debt is currently standing at about £20k and is growing every day that I can't work. How on earth are we supposed to move forward?

Can someone tell me how they are handling this? There must be hundreds of us in the same boat.

I spoke to a solicitor about the bad debt position, and he said it would cost about £13k to take them to court and we still would potentially not get the money back (as there is no money). But, if we clubbed together (I'm assuming Veritas issues fairly standard contracts to us all and therefore our cases would be similar) this fee could be manageable and would at least mean we have put up a fight...I can't stand to think that they can do this to people and just get away with it because none of us can afford to take them to court...

If they have missed a payment 30 days after any of your invoices, they are in breach of contract. You need to file timesheets for that period until that date (otherwise you will never be paid for the period to that date; also, you should make sure your client is not with-holding payment for that period (they will be obligated to pay by the administrator anyway).

After that date however, you should find some other way to bill with your client. You should mail them a letter to the effect that you consider your contract breached from that date. Your client should also send them a letter to the effect that Veritas has breach its contract with them, as you are no longer being paid.

If you need to convince your client that you being paid is part of the contract between Veritas and them, you can walk away - that is what we did for a week, until the client got their lawyers in gear. neither we nor our client have any contract with Veritas any more.