Question to the Department for Business, Innovation, Science and Trade:

To ask the Secretary of State for Business, Innovation, Science and Trade, when amounts are owed between companies within the same property development group, what mechanisms exist to ensure that potentially recoverable funds or assets are adequately investigated and pursued for the benefit of creditors.

Where a company enters administration or liquidation, the insolvency practitioner acting as office-holder is responsible for identifying and dealing with the company’s assets, including any amounts due from other companies.

Office-holders have wide powers to secure company property and seek information and, where appropriate, pursue recovery action. Where relevant legal thresholds are met, they may also seek to overturn certain transactions made prior to the insolvency proceedings that were not to the benefit of all of the creditors, so that assets may be restored for the benefit of the insolvent estate and its creditors.