Chester 01244 405 555

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Foregate Street Chester
Cheshire CH1 1HG
DX: 19990 Chester

Shrewsbury 01743 443043

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Oxon Business Park
Shrewsbury SY3 5HJ
DX: 148563 Shrewsbury 14

Airport City, Manchester 0161 537 3324

Offices 204 and 205
Manchester Business Park
3000 Aviator Way
Manchester M22 5TG

Antecedent Transactions

When a company is in financial trouble, the directors may undertake measures to try and move assets out of the reach of creditors. For example, they may transfer their or their company’s property to third parties.

Examples of transactions that can be challenged following insolvency include:
  • Continuing to trade beyond a point at which the directors knew or should have known the company would not avoid insolvency
  • Making payments to some creditors at the expense of others, for instance to a bank that the director has given a personal guarantee to
  • Transferring assets at undervalue (or for no value)
  • Transferring assets to third parties to avoid them being used for the benefit of creditors

Antecedent transactions can be ‘set aside’, however. This means that a trustee in bankruptcy or a liquidator or administrator can recover the assets (or their value) for the benefit of all creditors.

Insolvency Specialists

Our Insolvency team works with insolvency practitioners to unpick antecedent transactions as well as acting for those against whom such claims are made. Having acted for parties on both sides of such claims we are ideally placed to anticipate what the other party will be thinking and to plan strategies accordingly.

Nick-ClarkeNick Clarke

Senior Partner & Head of Dispute Resolution & Insolvency
Email: [email protected]
Tel: 01244 405558

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