£16m of insolvency funds goes a-begging

A corporate insolvency expert has urged greater awareness in how to obtain money from failed businesses after research highlighting that corporates in Scotland have failed to claim £16.7 million in the 2016-17 financial year.

Matt Henderson, head of restructuring at accountants Johnston Carmichael, issued the call after doing an analysis of the latest report from Accountant in Bankruptcy (AIB) which covers both personal bankruptcies and liquidations. The quarterly release from AIB, an executive agency of the Scottish Government, details the sum of unclaimed money due to creditors following insolvency settlements.

Henderson said: “There needs to be greater awareness that these funds exist. It is a procedural problem – many businesses out there are just unaware of the claims process after a customer goes into liquidation.

“Insolvency practitioners work diligently to recover money, which is then available for creditors but sometimes due to an array of factors, such as failed correspondence, the amounts that should be paid out are left undistributed.

“In a challenging business environment, we know these funds are vital to a company’s continued success and longevity.”

He said a “concerted drive” was needed to tell businesses the best way to request money due following insolvency.

Henderson said: “Any company due money from a failed business should take the time to complete the formal documentation, and keep in regular contact with the insolvency practitioner.” 0 Matt Henderson – ‘amounts not distributed’