Arthur
Well-known member
Off topic and question for you all knowing NSC types.
Company A is a supplier to Company B. Every month Company A invoices Company B and every month Company B pays Company A into Company A's bank account..... or so Company B thought.
It's well known at Company B that the owner of Company A has several companies but what is unknown is that Company B has been getting services from Company A but paying money into the bank account of Company C.
Company C gets put into liquidation but the owner of Company A & C neglects to tell Company B so Company B pays Company A invoice as per normal into the bank account of Company C which has been now been liquidated.
Legally where does Company A stand? The bank won't return the money to Company B (we've asked) and as Company C is no more Company C can't give the money back to Company B as I assume the money has just been swallowed up in the debt Company C had?
This has just happened to me, I feel really sorry for Company A as they are a two man band and it's quite a considerable sum of money (certainly to a small business) but it's really his own fault. Has he got any chance of getting his money back? The latest is he's spoken to a lawyer who thinks it can be done but is going to charge him about a 1/3 of the invoice amount to do it. He's not the sharpest tool in the box (as I'm sure you've guessed), is he being taken ride?
Company A is a supplier to Company B. Every month Company A invoices Company B and every month Company B pays Company A into Company A's bank account..... or so Company B thought.
It's well known at Company B that the owner of Company A has several companies but what is unknown is that Company B has been getting services from Company A but paying money into the bank account of Company C.
Company C gets put into liquidation but the owner of Company A & C neglects to tell Company B so Company B pays Company A invoice as per normal into the bank account of Company C which has been now been liquidated.
Legally where does Company A stand? The bank won't return the money to Company B (we've asked) and as Company C is no more Company C can't give the money back to Company B as I assume the money has just been swallowed up in the debt Company C had?
This has just happened to me, I feel really sorry for Company A as they are a two man band and it's quite a considerable sum of money (certainly to a small business) but it's really his own fault. Has he got any chance of getting his money back? The latest is he's spoken to a lawyer who thinks it can be done but is going to charge him about a 1/3 of the invoice amount to do it. He's not the sharpest tool in the box (as I'm sure you've guessed), is he being taken ride?