Following on from my post yesterday:
A common frustration for insolvency practitioners and creditors occurs where a debtor owes money to a company in liquidation, but for various reasons (sometimes unreasonably) those monies cannot be realised for the benefit of creditors.
The debtor may raise liquidated damages, breach of contract, defects, etc … all of which may be set-off against this liability.
In many cases, Liquidators are powerless to challenge this right to set-off, because of (amongst other things):
– a lack of expertise in the minutia of that industry;
– a lack of access to the site, service or goods (debtors generally terminate contracts immediately upon an insolvency event);
– insufficient funds; and/or
– lack of books or records.
My post yesterday attempted to explain why this situation may no longer be allowed, assuming an AllPAAP exists.
#Multiplex has been asked to act as contradictor in the case.