Addington West Group Ltd - Concerns
We are receiving many enquiries regarding the activities of company called ‘Adlington West Group Ltd’ who claim to be appointed by a liquidator in Spain who goes by the name of Mr. J Flynn, however his contact details are somewhat disguised.
At present, the information infers the company he is alleged to be liquidating, is insolvent. However, records show it’s not. Thus, if it is insolvent, Mr. Flynn has failed to register that fact in public records.
When appointed as a liquidator, the primary concern ought to be that of the creditors they protect. The role of a liquidator in the insolvency process is primarily designed to ensure a fair distribution of an insolvent company’s assets for the benefit of its creditors. In many cases, the liquidator is an individual who is authorised to act in relation to an insolvent company and will try to rescue the business if they believe this will produce a better return for the creditors. The liquidator task is not to encourage litigation against the organisation he is appointed to protect. If a company rescue is not viable, the company liquidator (if the case is relatively straightforward) will ask the known creditors to supply a list of the amount of the debts owed so, the totality of the company’s debt can be accounted for.
The company in question is Addington West Group Ltd which might sound impressive however, its registered office is located, in the ‘Kenilworth Conservative Club’ and it's directed by an ex-timeshare saleswoman who was a manger of the company which is claimed to have failed.
The liquidator’s principle object is to present and protect the assets, to ensure they can be sold. When sold the proceeds can be distributed equally and fairly to the company’s creditors. The liqudator's role is not enriching claims companies, and neither is it to encourage creditors to make claims, incurring costs and diminishing the reserves for the rest of the creditors.
Adlington was created quite recently and its total money reserves (on creation) was £1.00 which was elevated to £100 on the 16th of May 2019 which one might suggest is insufficient to perform the tasks that are claimed to be delivered.
The director is also a director to two other companies Naimlee Ltd which is dormant and valued at £2.00. and Kensington Jones Consultancy valued at £1.00 and no financial information is available. If trip-advisor is to be trusted, the latter company was born out of the Eze Group scandal.
The Insolvency Rules 1986 (IR 1986), SI 1986/1925 were revoked and replaced by the Insolvency (England and Wales) Rules in 2016. The liquidator is under a duty to take reasonable care in their management of the estate's affairs, not to make a secret profit and not to act when they have a conflict of interests. An officeholder must act in the best interests of the creditors, in the pursuance of their agreed objective, subject to some limited exceptions.
Equally, office-holders (whether appointed in or out of court) are officers of the court and the general principle that such officer will not act 'shabbily' ex Parte James (1874) 9 Ch App 609. This will mean that a court may act. Accordingly if an officer of the court has taken unfair advantage and obtained unjust enrichment for the estate (or themselves) as a result of their position an offence may have been committed.
The Insolvency Amendment (EU 2015/848) Regulations 2017, SI 2017/702 were laid before Parliament on 23 June 2017 and came into force on 26 June 2017 and have been adopted by Spain as they are a member of the European Economic Area.
Be carefull and stay safe