How long does it take to Liquidate a company.

[Holte End]

https://www.tynwald.org.im/spfile?file=/business/BusinessHansardIndex2126/W-202401-1322.pdf

As I am not in finance, as you can tell, but does it normally take this long to liquidate a company, or there something we are not being told.

 

[John Wright]

2 minutes ago, Holte End said:

https://www.tynwald.org.im/spfile?file=/business/BusinessHansardIndex2126/W-202401-1322.pdf

As I am not in finance, as you can tell, but does it normally take this long to liquidate a company, or there something we are not being told.

 

It’ll depend on whether there are any claims being brought by the liquidator to recover assets/funds.

SIB and IFTC and BCCI and KaupthingS&F all took 10 years or more.

[Holte End]

3 minutes ago, John Wright said:

It’ll depend on whether there are any claims being brought by the liquidator to recover assets/funds.

SIB and IFTC and BCCI and KaupthingS&F all took 10 years or more.

So could people still be held accountable after all this time, if they are still trying to recover assets, surely they have all gone, never to return.

[piebaps]

Liquidation is nothing to do with accountability, its about recovering cash for the creditors. The Liquidators reports and accounts are all publicly available via the companies registry.

 

 

[Holte End]

29 minutes ago, piebaps said:

Liquidation is nothing to do with accountability, its about recovering cash for the creditors. The Liquidators reports and accounts are all publicly available via the companies registry.

 

 

Ffs how many Louis groups companies where there, no wonder it has taken twelve years.

[John Wright]

1 hour ago, Holte End said:

So could people still be held accountable after all this time, if they are still trying to recover assets, surely they have all gone, never to return.

Accountability can be via a Liquidators report, or civil proceedings, or regulatory proceedings or criminal proceedings.

But, let’s say, funds were wrongly transferred to someone, they have to be traced and the holder sued. There’ll possibly be injunctions prohibiting dissipation.

There may be advances of money on mortgage based securities. They can’t just be called in. The loan book can be sold, often for a fraction of its true worth, or you wait until the mortgage is repaid. That’s what happened with KS&F. The immediate rescue plans would have left a huge shortfall. The mortgages all performed, meaning, even after mammoth legal and administrators fees there was a surplus. Everyone got their money back.

 

[The Phantom]

1 hour ago, Holte End said:

Ffs how many Louis groups companies where there, no wonder it has taken twelve years.

Considering it was an 'investment' company I imagine there will be many many group companies.  Probably just not here either knowing they had big SA links.  The rationale being that you generally set up a new company (SPV - Special Purpose Vehicle) for each investment.  In theory this limits liabilities if one investment fails, it doesn't take down the whole house of cards.  But this means that whilst Louis Group is being liquidated, there are actually liquidations going on at each SPV level, which all then feeds into the parent company.  The more companies there are, the longer it takes! 

[Holte End]

37 minutes ago, The Phantom said:

Considering it was an 'investment' company I imagine there will be many many group companies.  Probably just not here either knowing they had big SA links.  The rationale being that you generally set up a new company (SPV - Special Purpose Vehicle) for each investment.  In theory this limits liabilities if one investment fails, it doesn't take down the whole house of cards.  But this means that whilst Louis Group is being liquidated, there are actually liquidations going on at each SPV level, which all then feeds into the parent company.  The more companies there are, the longer it takes! 

Could some of the group companies be in the UK. 

[The Phantom]

20 minutes ago, Holte End said:

Could some of the group companies be in the UK. 

Yep.  I just typed Louis Group into UK Companies House website and there were a few hits with familiar sounding names as Directors. 

Probably a bunch of companies in South Africa too.  Getting those liquidated and paying the bribes would no doubt take a while.  

I suspect it will be quite the web that needs to be unraveled.  It would be interesting to see a structure chart (love them). 

As John notes regarding mortgages with KSF, I bet there will be some similar scenarios with Louis. 

[Passing Time]

31 minutes ago, Holte End said:

Could some of the group companies be in the UK. 

If you are not in finance, why are you so concerned?

[The Phantom]

2 minutes ago, Passing Time said:

If you are not in finance, why are you so concerned?

Had an investment with them?

Plenty average people did.  They were not just for the rich. 

[Holte End]

28 minutes ago, Passing Time said:

If you are not in finance, why are you so concerned?

Are you a policeman?

[Sceptic]

25 minutes ago, The Phantom said:

Had an investment with them?

Plenty average people did.  They were not just for the rich. 

Louis Group had a load of commercial property sitting at the bottom of most of those funds it will have taken years to liquidate and account for rents and debts and close the structures out. 

[Barlow]

4 hours ago, John Wright said:

It’ll depend on whether there are any claims being brought by the liquidator to recover assets/funds.

SIB and IFTC and BCCI and KaupthingS&F all took 10 years or more.

Although the liquidation was closed the SIB still has a significant asset sloshing about on Isle of Man. But the liquidator did some jiggery pokery with it. And now he's brown bread.

4 hours ago, Holte End said:

So could people still be held accountable after all this time, if they are still trying to recover assets, surely they have all gone, never to return.

Assets rarely disappear but they do 'disappear'.

 

ETA:

...........Where You Can etc.

Edited October 30, 2024 by Barlow

[Passing Time]

3 hours ago, Holte End said:

Are you a policeman?

Not at all, just curious as to why the sudden interest.