The client had engaged a local Solicitor to act in relation to a purchase of a business. The client intended to draw down money from his Superannuation and advance it to a related company to fund part of the purchase price. The balance of the price was to be paid post completion.
The client’s related entity had failed to pay the post completion payment and was sued by the vendor of the business. The vendor obtained Judgment against the client’s related entity purchasing company and subsequently an Order appointing a Liquidator to wind up the company.
The client had lost approximately $350,000.00, the money that he had withdrawn from Super and advanced to the related company, and remained an unsecured creditor in the liquidation.
The client had also signed a personal guarantee of his company’s obligations under a Lease of the premises from where the business had operated. Rent of approximately $7,000.00 was owing to the Lessor.
Approximately two (2) years after the company had failed the Lessor commenced recovery proceedings against the client under his guarantee.
The client sought advice from Roberts Crosbie Mortensen in relation to the Court proceedings and his personal insolvency.