Usually a ‘preference’ or ‘preferential payment’ is in the form of a payment, but almost any transfer of property and some creation of property (mortgages etc.)
The creditor must have received an advantage – have been preferred – over other creditors. This concept is described in the Act as the creditor receiving “more than the creditor would receive from the company in respect of the debt if the transaction were set aside and the creditor were to prove for the debt in a winding up of the company”.
Creditors and Directors of a company that is currently in liquidation who may receive a claim for a preference from a Liquidator.
To be able to recover an unfair preference, the liquidator must show that:
When a client has been put on notice by a liquidator that they have potentially received a preference payment from one of their customers. When a client has a customer that is paying off their debts in instalments (rather than on invoice).
C&N Turnaround Solutions would assist the client to defend any preference claims brought against them.
Reduction or elimination of the amount required to be repaid by the client to a Liquidator by assisting the client to provide their defences to such a claim, or to engage an appropriately qualified Lawyer to defend them.
Call 02 9299 7000 or click here to submit your enquiry
With C&N Turnaround Solutions we can help you untangle the mess, clear a way forward and give you peace of mind…