Victory in defending clients’ interests from accusations of causing wilful bankruptcy

Our Dispute Resolution lawyers successfully represented our clients – a former CEO and a financial institution – against allegations of intentionally causing the bankruptcy of a company.

The Court, after giving due consideration to the defences put forward by our team, dismissed the allegations brought by the bankruptcy administrator of the company in question.

The Court confirmed that the former director of the insolvent company had properly managed the business of the bankrupt company, especially since the former CEO is the sole creditor of this company to date and that the company has duly settled all other debts. The Court concluded that no evidence has been adduced in the case to substantiate the accusations made.

The Court pointed out that a transfer of the business of a bankrupt company can only be established when another company takes over the activities, contractual obligations and claims of the company in bankruptcy, whereas all debts are left with it. However, no such circumstances have been demonstrated in the present case.

Therefore, the Court, supporting the arguments of our clients, held that the allegations made had no merit.