Administrators for a mechanical and electrical (M&E) specialist have been served with a legal notice barring the disposal of company assets.<\/p>\n
A new report into the firm\u2019s affairs by administrators stated that last month they were served with a restraint order against a director at the firm, under the Proceeds of Crime Act 2022.<\/p>\n
The order \u201cprohibits the disposal of various assets of the company, together with a number of other parties\u201d, the report said.<\/p>\n
Construction News<\/em> is not naming the firm for legal reasons.<\/p>\n According to the Crown Prosecution Service (CPS) website, a restraint order freezes the property of someone who is a suspect or defendant under investigation.<\/p>\n The administrators said they had instructed their lawyers to communicate with the CPS about what effect the order will have on the administration process of the firm.<\/p>\n The CPS told Construction News <\/em>it was unable to comment on the matter.<\/p>\n The report also showed that administrators had identified transactions showing the company \u201cappears to have been a victim of fraud or the transactions appear to have no commercial rationale\u201d.<\/p>\n These are being investigated by the insolvency practitioners.<\/p>\n Several other payments have been flagged as potential antecedent transactions \u2013 where a company has made a transaction favouring one creditor to the disadvantage of others before they go into administration.<\/p>\n Antecedent transactions can be challenged by administrators and their recovery sought from those who have received the cash.<\/p>\n The report said that administrators had \u201cidentified transactions where the company has transferred assets for significantly less than the actual value that could be recovered\u201d and\u00a0that \u201ctransactions that may lead to an unjust enrichment claim against third parties\u201d were being investigated.<\/p>\n","protected":false},"excerpt":{"rendered":" Administrators for a mechanical and electrical (M&E) specialist have been served with a legal notice barring the disposal of company assets. A new report into the firm\u2019s affairs by administrators stated that last month they were served with a restraint order against a director at the firm, under the Proceeds of Crime Act 2022. The …<\/p>\n","protected":false},"author":43915,"featured_media":513950,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[554,578],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n