Client restructuring. Will I get paid?
Thread poster: Mark Chen

Mark Chen  Identity Verified
Local time: 18:14
Member (2008)
English to Chinese
+ ...
Dec 6, 2013

Dear colleagues,

I have a client for whom I have been working for years. I worked on a translation project for them back in October, the amount of which was about GBP400. They have a very good BB record (all 5 points). So I was shocked when I received an email from them that they would be restructuring. They told me that liquidator had been appointed, but the negotiation for merger with another company is ongoing. The liquidator asked me to fill in some forms, which I have not finished yet because I was hoping the merger would be successful. But judging from the situation now, it looks like the merger negotiation has failed.

What can I do now to make sure I get paid? You comments will be highly appreciated.

Best regards,

Mark


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Sheila Wilson  Identity Verified
Spain
Local time: 10:14
Member (2007)
English
+ ...
You need to ge those forms sent off Dec 6, 2013

They will be to officially register your claim to the money with the receiver, I believe. When it happened to me (in France), I was told that I'd get the money if the company finally recovered - it would be guaranteed. I was also told that I could (and should) work for the company during receivership as every invoice would be paid on the dot. That was certainly true - all payments were handled by the receiver and it was fine.

Then came the moment when the final decision had to be taken: fold or refloat. At that point, I was asked (along with all suppliers who were owed money) whether I'd continue working for the company, with no guarantee of payment (any more than any business can ever give), and payment of the outstanding invoice when they were finally deemed to be totally back on their feet and trading alone. I decided I wasn't ready to risk more, and I imagine most suppliers said the same. The company folded, with my one outstanding invoice. I lost about 400€.

If the company does fold, you'll have precious little chance of seeing your money, as you'll be behind all the big ones (services, banks...).

Of course, mine was just one case, in France, and there were no mergers etc involved. Your case might be different.


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xxxnrichy
France
Local time: 11:14
French to Dutch
+ ...
Client restructuring = you will not get paid. Dec 6, 2013

Or it would be a miracle.

Jut fill in those forms, and send them immediately as Sheila says, by registered mail if such a thing exists in your country, and follow the instructions of the liquidator. Be sure to get a written confirmation of receipt as soon as possible!


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Mark Chen  Identity Verified
Local time: 18:14
Member (2008)
English to Chinese
+ ...
TOPIC STARTER
thanks Dec 6, 2013

Thanks Sheila. My client is in the UK. Will it help if I find a lawyer? Not worthy?

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Mark Chen  Identity Verified
Local time: 18:14
Member (2008)
English to Chinese
+ ...
TOPIC STARTER
update Dec 6, 2013

Just received an update from the liquidator:

Your claim will be included as an unsecured creditor in the liquidation.

A dividend may be paid to unsecured creditors at a future date.



What does this mean to me? I never had this kind of experience before.


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Stéphanie Denton  Identity Verified
United Kingdom
Local time: 10:14
French to English
+ ...
Highly unlikely you'll get paid Dec 6, 2013

Hi Mark

I recently had to fold my Company, and all Service Providers were put, as Sheila pointed out, after bigger creditors. If you're lucky and get someone like me, they'll pay. I intend to pay every service provider, out of my own pocket, and hope to do so within a year but I'm sorry to say it doesn't look like you'll see your money

Good luck!


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Mark Chen  Identity Verified
Local time: 18:14
Member (2008)
English to Chinese
+ ...
TOPIC STARTER
thanks Stephanie. Dec 6, 2013

No use to get a lawyer? There is nothing the translators can do? This is unfair, even in China. Not to mention that it is in the UK.

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Andrea Muller  Identity Verified
United Kingdom
Local time: 10:14
English to German
+ ...
Agree that it is highly unlikely you'll get paid Dec 7, 2013

I very much doubt it that a lawyer could help to get your money. The liquidator controls the company's assets (if they have any) and deals with the creditors; secured creditors take preference over unsecured creditors, and only if there is anything left after they have been dealt with, this gets distributed amongst the unsecured creditors.

Did the liquidator not send you any information about the whole process?

Here is a link to a guide for creditors from the UK government website: https://www.gov.uk/register-creditor-bankruptcy


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Stéphanie Denton  Identity Verified
United Kingdom
Local time: 10:14
French to English
+ ...
Doubtful Dec 8, 2013

Mark Chen wrote:

No use to get a lawyer? There is nothing the translators can do? This is unfair, even in China. Not to mention that it is in the UK.


I'm sorry to be the bearer of bad news but if you involve a lawyer/solicitors, you will only be throwing money away as you will be "at the bottom of the pile", and all larger creditors will be prioritised. It's rubbish, and I'm sorry you're in this position.


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Client restructuring. Will I get paid?

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