When Mainzeal Property and Construction Limited (Mainzeal) collapsed in February 2013, it left behind a raft of unsecured creditors who were jointly owed just over $110 million. The proceedings brought by Mainzeal’s liquidators against its former directors were for the effective benefit of these creditors.
A company is teetering on the verge of insolvency. Its creditors are numerous. The company arranges for a third party to settle some of its debts on its behalf, but nonetheless tips over into liquidation. Can the liquidators recover the monies paid to the company’s creditors?
This article provides an update on insolvency matters with reference to recent case law.