Baker Donald, a Chesterfield-based company that offered insolvency advice and also traded as a licensed Insolvency Practitioner, was put into provisional liquidation on public interest grounds on by the High Court in Manchester.
The order follows a petition presented by the Secretary of State for Business, Innovation and Skills and an investigation by the Insolvency Service. The Official Receiver has been appointed as Provisional Liquidator.
The company stated that it initially traded providing general corporate insolvency advice, referring client cases to an Insolvency Practitioner. Latterly, it employed an in-house Insolvency Practitioner and handled cases itself. The Secretary of State’s allegations include that the company’s failure to maintain, preserve and/or deliver up accurate accounting records means that it was not possible to distinguish between funds held on behalf of clients or third parties and those belonging to the company.
The role of the provisional liquidator is to protect assets in the possession of or under the control, of the company pending the determination of the petition. The provisional liquidator also has the power to investigate the affairs of the company insofar as it is necessary to protect the assets including any third party or trust money or assets in the possession of or under the control of the company.
The case is now subject to High Court action and no further information will be made available until the petition is heard in the High Court on 14 April 2014.