Every insolvency practitioner knows that, as soon as the liquidation of a company is announced, all manner of technical and unmeritorious defences from debtors leap out of the closet.
The liquidator faces disputes on debts that looked entirely uncontentious before the insolvency came along. Professional negligence by the company’s solicitors or auditors goes uncompensated and on-going litigation by the company has to be dropped, no matter how high the chances of success. Sometimes directors have fleeced the company before liquidation, yet hotly deny they ever did anything wrong… honest.
