Personal Liability for Company debt

• A large mining services business was placed into Voluntary Administration, then Deed of Company Arrangement (‘DOCA’). The DOCA provided for a return to unsecured creditors of 11 cents in the dollar.
• A former Director was pursued for the balance of the debt owed to a number of suppliers who held personal guarantees.  
• The amount of the claims exceeded $2 million.

• What is the Asset and Liability position of the Director.
• Is it possible for the Director to propose a Personal Insolvency Agreement and would it provide a commercially acceptable return to creditors.

In our free consultation we discussed the financial position and income earning capacity of the debtor.  

Based on this situation, there was no option but for the Director to enter into Bankruptcy.

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