The complication of insolvency can impact on existing litigation or lead to a whole host of new litigation. Generally, this occurs at the instance of the Insolvency Practitioner acting in his capacity as Trustee, Liquidator, Receiver or Administrator.
One of the main sources of insolvency litigation is the challenge of transactions prior to the insolvency either by way of a gratuitous alienation (similar to a gift) or unfair preference. Another source is the pursuit of directors or officers of companies under statutory provisions which can render them personally liable. Litigation in relation to heritable property is common where the Insolvency Practitioner is attempting to realise his interest in the property and is unable to do so due to joint ownership or occupancy complications.
We act for a number of well respected Insolvency Practitioners and have considerable experience in the pursuit of such actions. We also act for those faced with such proceedings.
Contact
Dorothy Hatfield
Partner, Glasgow