Court winds-up Manchester firm offering unlicensed insolvency practitioner services

A Manchester-based company, Save Consultants Ltd, has been shut down for acting as an unlicensed insolvency practitioner. The company advertised itself as a broker for directors in financial distress, helping them sell their business interests and escape debts. Despite these claims, none of the directors were licensed insolvency practitioners.

Key points:

Save Consultants Ltd was closed by the High Court in Manchester on July 2 after investigations by the Insolvency Service.

The company falsely claimed expertise in corporate restructuring and insolvency however none of the current or former directors of Save Consultants were licensed insolvency practitioners.

It promoted itself through two now-defunct websites, offering quick company sales and debt restructuring services. One of the websites claimed the company, which was based on Moston Lane in Manchester, was a “unique alternative to formal corporate insolvency in the UK” with a successful track record of delivering advice to companies in financial difficulty. Another website used to promote Save Consultants’ activities stated that its focus was on turnaround services and corporate restructuring. Its listed services included debt restructuring, crisis management, and creditor negotiations. Neither website explained what would happen to companies once sold, how Save Consultants would deal with the liabilities, or how the company directors would avoid being held to account for their actions.

Investigations revealed that the company and its directors did not cooperate, hindering efforts to identify who controlled the company.

David Usher, Chief Investigator at the The Insolvency Service , stated that “Save Consultants posed a risk to the integrity of the insolvency regime by offering unauthorized services.”

Insolvency work, such as acting as a liquidator or administrator, is regulated and must be performed by licensed insolvency practitioners, such as AABRS , who pass the Joint Insolvency Examinations Board exams and meet regulatory requirements. To discuss any client, in confidence, please don’t hesitate to contact me on [email protected] or 07968 849335.

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Source: Court winds-up Manchester firm offering unlicensed insolvency practitioner services - GOV.UK ( www.gov.uk )