THE BIG FOUR and insolvency trade body R3 have joined forces in their fight against proposed insolvency reforms.
A letter was sent by the consortium to insolvency minister Edward Davey requesting a meeting to discuss proposed changes which they feel outweigh benefits and reduce creditor returns.
The dispute is over the introduction of a complaints body which will deal primarily with insolvency practitioner (IP) fees.
R3 president Frances Coulson (pictured) said: “Under the new proposals, insolvency practitioner fees can be agreed by the majority of creditors but then challenged at the end by a minority creditor or angry director.
“The cost of making a complaint is free to the complainant, and if the complaint is not upheld it will be paid for out of the insolvent estate.”
FRP Advisory sells business and assets of Harland Machine Systems Limited to Accraply Europe Limited
Manufacturer DMG Steelworkers has been sold out of administration in a pre-pack deal by insolvency and restructuring firm CVR Global
By threatening creditor returns, the government could undermine the UK’s World Bank insolvency ranking and cost creditors £8m a year, trade body R3 warms
Lee De’ath and Richard Toone, partners at CVR Global, were appointed joint-administrators of Lexden Centre (Oxford) Limited, trading as Colchester English Study Centre (CESC), on 29 June 2016