A Manchester-based company believed to be offering insolvency practitioner services when it was not authorised to do so is wound-up in court.
Save Consultants Ltd claimed to provide insolvency practitioner services when none of its current or former directors were licensed
Its actions risked undermining the insolvency regime and the company’s directors refused to explain its trading practices to investigators
The company has been closed down following investigations by the Insolvency Service, with the Official Receiver appointed to wind-up its affairs
A Manchester-based company has been shut down in the public interest after investigations indicated that it was acting as an unlicensed insolvency practitioner.
Save Consultants Ltd advertised itself as an alternative solution to formal insolvency proceedings, providing a brokerage service to assist directors in financial distress to sell their interest in companies and leave their debts behind.
The company’s strapline on its website promised to help individuals get back in control of their finances and put their businesses on a more secure financial footing.
However, despite claims that they had worked in corporate restructuring and the insolvency industry for a number of years, none of the current or former directors of Save Consultants were licensed insolvency practitioners.
Save Consultants was wound-up at the High Court in Manchester following investigations by the Insolvency Service.
David Usher, Chief Investigator at the Insolvency Service, said:
Save Consultants claimed to offer services to the public which put the integrity of the insolvency regime at risk.
Our investigations indicated that they were offering the services of an insolvency practitioner without the authority to do so. No current or former directors are licensed insolvency practitioners and no evidence was given of a licensed insolvency practitioner acting on behalf of the company.
The company and its directors failed to co-operate with our investigations and provide any explanation for their business dealings which is why we have taken this robust action to prevent them from trading in the future.
Insolvency Service investigations found two now defunct websites which Save Consultants used to advertise its services to the public.
One of the websites claimed the company, which was based on Moston Lane in Manchester, was a “unique alternative to formal corporate insolvency in the UK” with a successful track record of delivering advice to companies in financial difficulty.
The website said that Save Consultants had helped hundreds of company directors throughout the UK and could legally sell companies within just 48 hours for a one-off payment.
Another website used to promote Save Consultants’ activities stated that its focus was on turnaround services and corporate restructuring. Its listed services included debt restructuring, crisis management, and creditor negotiations.
Neither website explained what would happen to companies once sold, how Save Consultants would deal with the liabilities, or how the company directors would avoid being held to account for their actions.
Investigators requested documents from Save Consultants on numerous occasions but the directors failed to co-operate, meaning the Insolvency Service was unable to accurately establish who had ultimately been in control of the company’s affairs.
The Official Receiver has been appointed as liquidator of the company.
Insolvency work such as acting as a liquidator or an administrator for a company is regulated and can only be done by a licensed insolvency practitioner.
Individuals must pass the Joint Insolvency Examinations Board exams to qualify as a licensed insolvency practitioner. They must also meet certain requirements set out by the regulatory bodies, which include evidence of insolvency experience, fitness and propriety together with one or more references.
