Agent gone bust

[SuperZ]

Don`t see the point in going to a creditors meeting personally either, especially if still in work. Lose more money and you`re unlikely to get any further (IMO). By the time the liquidators take their crazy cut of anything left over to cover their charges, not much will be left behind.

[dack]

What are the legal obligations of the appointed liquidators?

Is it to collect as much money owed as possible and pay off as much debt as possible?, or is it to wind up the company with the least amount outstanding debt possible.

This is pertinent to contractors because the money owed to the liquidators from the client includes the commission and the subcontractors payment which is actually a debt owed by the liquidated company.

For example, if Pendas are due 100k from client and owe 90k to contractors, net worth is actually 10k. So the liquidators could either collect the 100k and leave the 90k unpaid or they could collect the 10k and the 90k would be wiped of the debt.

There must be a legal precedence they have to follow.

If so, then presenting this proposition to the liquidators would mean they would have to accept the 10k payment thus releasing our client to pay us and therefore removing 90k of debt of the liquidators list.

Makes sense to me but is that how things work?

[Not So Wise]

What are the legal obligations of the appointed liquidators?

Is it to collect as much money owed as possible and pay off as much debt as possible?, or is it to wind up the company with the least amount outstanding debt possible.

This is pertinent to contractors because the money owed to the liquidators from the client includes the commission and the subcontractors payment which is actually a debt owed by the liquidated company.

For example, if Pendas are due 100k from client and owe 90k to contractors, net worth is actually 10k. So the liquidators could either collect the 100k and leave the 90k unpaid or they could collect the 10k and the 90k would be wiped of the debt.

You are making the classic mistake of linking money owed by client to money owed to contractor, which is not how the receivers view it, they are two separate things as far as they are concerned

Basically in simple terms this is how it works, receiver try to get as much money as they can, from contracts, assets so forth. This goes into a single fund

Then the various creditors start getting paid out of this pool of money, who gets first dibbs is regulated (basically employee's, tax man, banks on secured loans, receivers themselves) then if anything is left over this it divided up between the general creditors, which will mainly be contractors in this case.

Depending on how bad things are there might be money for the general creditors or there might not, but generally because agencies don't have much in way of assets expect worse case scenario, aka nothing

So in your case, receivers will view the whole 100k as pendas "assets", so into the pool it goes

[dack]

That was my thinking but desperately exploring all avenues. I (we) have resigned ourselves to kissing goodbye the money owed.

Thanks for input guys, I'm confident the collective feedback is sound advice.

Now, how do I explain to the family that Xmas 2009 is cancelled.

[SuperZ]

That was my thinking but desperately exploring all avenues. I (we) have resigned ourselves to kissing goodbye the money owed.

Thanks for input guys, I'm confident the collective feedback is sound advice.

Now, how do I explain to the family that Xmas 2009 is cancelled.

Tried contacting the CEO or Directors directly? I`ve heard of a few contractors in the past have managed to get some money out of those involved, as they at least had some integrity and guilt over the failure.

I`d love to see the recent divi payout records of Pendragon

[RichardCranium]

Now, how do I explain to the family that Xmas 2009 is cancelled.

Easy. You're a contractor.

"You know how we have had good times on good money? And remember how I said contracting has its ups and downs? Well, we've just gone into a down . But not to worry, tulip happens and it is perfectly normal. And it's just temporary."

You do have a 6 month+ warchest, don't you?

[dack]

Warchest?, wife, found, opened it and spent it.

[RichardCranium]

Warchest?, wife, found, opened it and spent it.

Oh. tulip.

Hey ho.

A wiser man than me once said: "I can project manage anything. But I cannot project manage my wife."

Google Mail keeps giving me recipes for spam friteers, if that's any help for Xmas?

Still, at least you are in a gig, you're not in the position of a permie being laid off. So that's a win.

[Tarquin Farquhar]

That would probably be worse.

Under current system if client goes under, agency still owes you, under what you propose you would still be at bottomof list to get money from clients receivers but still owe agency their cut regardless

I've seen a lot more agencies go bust, than clients go bust. I'd take my chances that way.

[xchaotic]

And as for it happening just before Xmas: it could be worse. It could have happened just after Xmas when the bills start rolling in.

Very true.
I lost a few weeks myself in January and then recession came and they got rid of all contractors globally and I was on the bench for almost 3 months.

So cheer up and man up, things could be worse.