One of the longest running insolvencies in the UK has been completed after an
eye-watering 35 years.
Young have completed dealings on Apal, a tour operator that
ironically went bust during the last banking crisis in 1974 after the
Israel-British bank collapsed.
Last month the firm paid the last of seven dividends to more than 500
creditors, including holidaymakers, airlines and hotels. The first dividend was
paid out in the 1970s
Creditors received 74p in the pound.
The delay in payments was due to complex loans to third parties and
irregularities discovered at the collapsed bank, resulting in lengthy legal
actions and criminal proceedings outside the UK.
“This insolvency shows that when a bank fails with significant assets
overseas and there are irregularities the process of getting the creditors’
money back can be complex and lengthy,” said Ladislav Hornan, managing partner
of UHY Hacker Young and sole surviving liquidator.
“When you think of the greater complexity of the modern banking system,
creditors could be much worse off if a similar situation happened today. 35
years is a long time to wait for your money.
“It is a relief to finally close the book on this case. It’s particularly
satisfying that the creditors got back three quarters of the money they
originally lost, which is a very good result for an insolvency despite the
passage of time.”
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