Controversial stockbroker Pacific Continental Securities, awarded the Guardian Money accolade as "the worst investment firm of the year" last December, has gone bust.

The firm's collapse came just days after the Financial Services Authority banned it from taking on new business.

A new company, Caspian Stockbrokers, legally formed just 24 hours before the FSA pulled the plug on Pacific Continental, has now bought most of its business from Smith & Williamson, the insolvency specialists called in to wind it up.

And, in a further bizarre move, a rival stockbroker has accused Pacific Continental of plagiarism by copying its research material almost word-for-word but passing it off as its own.

The FSA action was not unexpected. It had plenty of evidence of mis-selling and unsuitable advice, including scores of complaints to the Financial Ombudsman. Guardian Money first warned of the broker in 2004 and advised readers to steer clear of it several times more recently.

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June 25 (Reuters) - U.S. Energy Systems Inc. (USEY.O: Quote, Profile, Research) said it may face bankruptcy or insolvency proceedings if it is unable to raise funds to meet some UK financing arrangements.

The company said it is currently expects a shortfall of up to $3.2 million in 2007 working capital in its UK gas assets and is currently evaluating cost saving measures intended to reduce such shortfall. (Reporting by Anup Roy in Bangalore)


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HSBC chairman Stephen Green warns that credit glut could 'end in teas'

The chairman of HSBC, the UK's largest bank, has warned the excessive leverage underpinning so many deals could 'end in tears' if a major deal collapses.

In an interview with the FT Stephen Green said he was 'worried by the degree of debt in some big ticket transactions nowadays' and that something was going 'end in tears'.

Green's comments follow similar warnings from 3i head Philip Yea and Alchemy Partners boss Jon Moulton, and come as private equity faces intense scrutiny from unions and MPs over the use of debt to fund takeovers.

Green also warned that in the event of a collapse, a corporate recovery would be very difficult because risk had been parcelled out to so many parties.

He did say, however, that a single major insolvency was 'unlikely' to question 'the solvency of one particular institution or even the viability of the whole system'.

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MPs from Leeds yesterday called on the Treasury and tax officials to challenge the creditors' vote that handed control of a debt-free Leeds United to Ken Bates and his associates last month.

The Liberal Democrat Phil Willis who, along with Labour's George Mudie and Colin Burgon held a Westminster meeting with the Treasury minister, Ed Balls, the paymaster general, Dawn Primarolo, and the sports minister, Richard Caborn, said: "We are trying to get the Treasury and HMRC [Her Majesty's Revenue and Customs] to challenge the administrator's decision by July 3. There was £7.7m owed to the taxman and that is no small matter. We had assurances this morning that the taxman is taking this very seriously and we are optimistic a challenge will be raised before [next Tuesday's] deadline.

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After 20 months of negotiations over restructuring and wage cuts, Delphi Corp. and the UAW announced on 22 June that they had reached a tentative agreement and signed a Memorandum of Understanding with General Motors covering site plans, workforce transition and other “comprehensive transformational issues”. The agreement is subject to local union branch ratification and approval by the U.S. Bankruptcy Court.

"If ratified, we believe this agreement will be a significant milestone in our transformation and a major step towards emergence (from bankruptcy)," said John Sheehan, Delphi's chief restructuring officer, adding, "The Memorandum is a testament to the dedication and hard work of the UAW, Delphi and General Motors teams." Delphi said it would not provide further commentary on the details of the Memorandum, and UAW President Ron Gettelfinger and UAW Vice President Cal Rapson said details were being withheld based on explanation and ratification meetings by local unions.

Some U.S. media reports suggested that the UAW had agreed to hourly wages being cut from $27 to $18.50.

Spun out from GM in 1999, Delphi filed for Chapter 11 US bankruptcy protection in 2005. GM is exposed to costs of over $7bn (£3.5bn) related to Delphi’s insolvency.


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Soon-to-be prime minister Gordon Brown must act to try to reduce the amount of debt people in the UK have, the Liberal Democrats have said.

Mr Brown is set to take on the role of prime minister on June 27th, but opposition MPs have already said that one of Mr Brown's first tasks must be to deal with rising debt levels - which are forcing more people to consider IVAs.

The Liberal Democrats' shadow chancellor, Vince Cable, calculated that personal debt as a proportion of income has risen from 105 per cent in 1997 to 164 per cent last year, mortgagesolutions-online.com reports.

Mr Cable commented: "When rates rise as expected this summer and probably in the autumn too, many households will not be able to cope.

"As chancellor, Gordon Brown neglected to tackle this ticking time bomb and we are already seeing rising numbers of repossessions and personal bankruptcies.

"As prime minister, he must take urgent action to tackle spiralling levels of personal debt before more families find themselves on the street."

Figures from the Insolvency service show that 13,233 IVAs were issued in the first quarter of 2007.


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County Court Judgement is the term for a judgement made against a person or company for debt in the county court. Generally if a CCJ is paid in full within 30 days of the date of the judgement it won’t appear in the credit register. CCJ’s are a matter of public record. They are catalogued and held for 6 years with the Registry Trust. If a judgement is settled after the 30 day period it will be entered into public record and this will affect your credit rating.

If a County Court rules against you for defaulting on a debt, it will make an order that you must repay a creditor the debt. A CCJ will then be listed on your credit record. Having a CCJ may mean that you are turned down for future loans, or be expected to pay a higher rate than other customers. The Scottish equivalent of an English CCJ is a Decree.

County Court Judgement. A court order against a debtor to pay money owed. Details of the CCJ are usually entered on the Register of County Court Judgements. Most entries stay on the Register for six years. Once Judgement has been made against you, the creditor can then ask the court to recover the debt in various ways, including the use of an attachment of earnings order and Bailiffs.

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TL Risk Solutions has launched a product aimed at protecting commercial landlords from rising insolvency.

The risk specialist says with UK consumers now the most indebted in Europe, recent statistics have shown a rise in insolvencies in the first quarter of 2007 of nearly 24% on the same quarter last year.

It says as well as having devastating consequences for those involved, there is the inevitable impact of insolvency on associated businesses, particularly the landlords and managing agents.

TL Risk Solutions is currently working with an insurer to provide cover for exactly this type of risk, should a commercial tenant become insolvent.

Gavin McLaren, business manager for TL Risk Solutions Credit division, says: “This form of cover provides landlord’s with protection against a loss arising from the insolvency of a commercial tenant.

“As well as covering a loss arising from unpaid rent, cover is extended to include up to twelve months loss of rental income whilst the property is vacant.

“In this way it secures a valuable income stream and maintains income whilst a new commercial tenant is sought or a property refurbished.

“With the recent introduction of the Tenancy Deposit Scheme for private landlords we are doing all we can to make sure that our landlord indemnity scheme will cover any issues that may arise should the deposit scheme be extended to commercial properties in the future.

“There are also major benefits to the tenant as there is the potential to replace cash deposits thereby freeing up working capital.”

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Debtor is one of the account balances in financial statements. Usually it is presented as one of current assets.

In writing ledger accounts, a debtor's amount is written on the debit (Dr) side, as the name suggests. Debtor as it appears in balance sheet connotes same meaning as the accounts receivable (USA accountancy). In other words, a Debtor is someone who owes you money. It is the opposite of a Creditor who is someone to whom you owe money.

In economics a debtor (or a borrower) owes money to a creditor.

If the money owed becomes beyond the possibility of repayment, the debtor faces insolvency or bankruptcy; in the United Kingdom and some states of the United States until the mid-19th century, debtors could be imprisoned in debtor's prisons.

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People borrowed more money in the first quarter of 2007 than they did in 2006, meaning that they may need debt solutions like IVAs in the future, a new study shows.

Consumer website Unbiased.co.uk found that UK consumers borrowed 41p for every £1 they saved in the first three months of 2007. This compares to 35p in the final quarter of 2006.

In total, consumers took on almost £15 billion worth of secured and unsecured debt in the first quarter of 2007 - about £100 million more than in the three months before.

"It is worrying to see that savings rates have dropped by £6 billion compared to last quarter," the website's chief executive, David Elms, added.

"People need to realise that their savings are a crucial part of their financial planning and that the amount they save should act as an emergency fund to cover their outgoings and borrowings.

"Personal debt in the UK continues to rise and, as such, all the conscientious effort being made on saving money is being undone by continued increasing usage of credit cards, loans and overdrafts."

Indeed, recent figures from the Insolvency Service indicated that there were 4.7 per cent more IVAs in the first three months of the year when compared to the previous quarter.

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The £11.1bn takeover of Alliance Boots appeared to have cleared its most important hurdle on Tuesday after the health and beauty group’s pension trustees agreed a funding package with Kohlberg Kravis Roberts.

After weeks of tense negotiations, KKR agreed to increase its cash payment to the pension fund to meet a shortfall of £305m claimed by the trustees. The private equity group is to pay £418m in cash over ten years - or a net present value of £305m - to buttress the fund against the threat of the company’s insolvency.

KKR has also put up a security package where the fund would have a priority claim over £200m in the event of insolvency and a claim that ranks equal with senior bank lenders over an additional £400m.

Trustees took legal advice over the possibility of blocking the takeover if they had failed to reach agreement with KKR. The deal is likely to take some heat out of Wednesday’s encounter between Dominic Murphy, European head of health care and consumer products at KKR, and MPs on the Treasury select committee who are examining the role of private equity.

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MORE Sydney families are being pushed to the wall by financial pressures despite a three-decade low in unemployment.

There were 6940 bankruptcies, debt agreements and personal insolvency agreements in Sydney last financial year, an increase of 16.4 per cent on the previous year. Another 5250 were registered between last June and February, suggesting the total this financial year could push towards 8000. That compares with just 4544 in 1999-2000.

Labor has used the figures from the Insolvency and Trustee Service Australia to highlight a rising trend in personal insolvency over the past six years.

The number of personal bankruptcies and debt agreements across Sydney rose by more than half between 1999-2000 and 2005-06. Parts of western Sydney have been hardest hit with a rise of 99 per cent in Blacktown and 70 per cent in the outer west. A slump in property prices since 2004 and relatively high rates of unemployment in some parts of west and south-west Sydney may have contributed to the surge in bankruptcies and debt agreements.

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IVMD, the Inverness medical device developer, has revealed a desperate cash shortage in its most recent accounts.

The company has admitted that it has less than £1000 left in its bank accounts, is surviving on cash handouts from a related company, and its lenders have begun discussions about how best to avoid insolvency.

Nasdaq-listed IVMD, which currently trades at $0.06 a share, recently won headlines for creating a pregnancy monitoring device which can detect that labour is about to begin. However, IVMD's most recent filings with the US Securities and Exchange Commission revealed that the company has recorded no revenues for the past nine months, has defaulted on a number of its loans and has more than $5.5m in net current liabilities with losses of $11.3m since inception.

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A GREAT Clifton man has been disqualified from acting as a company director for five years after admitting five charges related to the conduct of a business.

Dean Daniel Hudson, 41, also known as Dean Benson, of Abbot Wood, was also given a community order under which he will have to carry out 150 hours of unpaid work and was ordered to pay £496.49 costs to the Department of Trade and Industry.

He admitted four charges that, being an officer of Miaguard National Security Limited, he knowingly and willfully authorised default to be made by the company in that it failed to keep accounting records which were sufficient to show and explain the company’s transactions, contrary to the 1985 Companies Act.

He also pleaded guilty to failing, without reasonable excuse, to comply with an obligation imposed on him by the 1986 Insolvency Act by not giving information about the company that was reasonably required.

The offences were committed between 2001 and 2005.

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Popular IVA community website, IVA.co.uk, threatened with court action from IVA providers over slanderous comments posted on the website by disgruntled debtors
Kevin Reed, Accountancy Age, 14 Jun 2007
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Entering into insolvency, be it business or personal, is an emotional process. Therefore outbursts aimed at creditors or poor old insolvency practitioners accused of not getting a good deal are commonplace.

A popular website for the IVA community, IVA.co.uk, has admitted it has been threatened with court action from IVA providers over what they saw as slanderous comments posted on the website by disgruntled debtors.

IVA.co.uk admitted that it has moderated comments such as 'she-devil' and 'dogs-breath' aimed at insolvency practitioners and had dealt with comments that implied quality of some IVA providers’ service and regulated standards were not being met.

The website’s problems follow recent tales of internet-based abusive comments around the insolvency arena.

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John C. Coffee, a Professor of Law at Columbia Law School has speculated that a U.S. global class action trial arising from the Royal Dutch Shell oil and gas reserves fraud in 2004, could put Shell in danger of insolvency.

The story is here.

In April 2007, Shell announced it would pay around $400 million, including legal costs, to settle a non-US investor lawsuit arising from a series of reserves restatements in 2004 that slashed its hydrocarbon reserves by almost a third. Shell’s shares fell by about 10 per cent after the scandal broke in 2004, but recovered as a result of high oil prices.

Shell had already paid $150 million in fines imposed by the financial regulatory authorities – the U.S. Securities and Exchange Commission and the UK Financial Services Authority - for securities fraud which involved “fooling the market”. The fraud led to the resignation of Shell’s three top executives including Group Chairman, Sir Philip Watts and the transformation of the Anglo-Dutch 100 year old two company structure into a Dutch owned company registered in the UK, but with its HQ in The Netherlands.

Shell has already settled class action claims brought by other parties, including a Shell employee’s retirement fund. Shell has also asked the SEC to distribute to Shell shareholders the $120m paid by the company as a “civil penalty settlement”.

The main consolidated class action was brought in the U.S. Federal courts. This was subsequently expanded into a historic global class action. The trial commences next week when lawyers for Shell will try to persuade U.S. District Chief Judge John Bissell to allow the $400 million settlement proposed by Shell to proceed. Shell has said that it intends to offer the same proportional settlement – around $80m, to U.S. investors.

New York law firm, Bernstein Liebhard & Lifshitz LLP, acting for the lead plaintiffs, Pennsylvania State Employees Retirement System & Pennsylvania Public School Employees Retirement System, and Mr Peter Wood, who is representing non-U.S. qualified Shell stockholders, will ask the Judge to reject the settlement proposed by Shell and allow the global class action to proceed.

It is this eventually which could result in the potential massive settlement that Professor Coffee has indicated could put Shell at risk of insolvency.

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The Rugby Football League have deducted points from two National League clubs which recently hit financial difficulties.

Doncaster Lakers, from National League One, and League Two outfit Swinton Lions, are the first clubs to fall foul of the League's clampdown and have both been docked six points after entering into a Company Voluntary Arrangement.

In a statement, the RFL said: "Following a board meeting, the RFL have announced that Doncaster Lakers and Swinton Lions have each been deducted six points for a breach of the RFL's insolvency rules, with immediate effect."

The deduction means Doncaster, who are hoping for new backers to save them from extinction, are now bottom of League One with just three points, three behind Sheffield Eagles.

Swinton, who are confident they have overcome their financial problems, drop from eighth to 10th in League Two and are virtually ruled out of the promotion race.

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Liquidation has two meanings in finance. The first is converting securities into cash. The second is the sale of the assets of a company to one or more acquirers in order to pay off debts. In the event that a corporation is liquidated, the claims of secured and unsecured creditors and owners of bonds and preferred stock take precedence over the claims of those who own common stock.


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Under the law of unintended consequences, as defined by Robert Merton, where an action or policy is initiated to produce a desired result but actually produces the opposite result, recent changes or creditor backed fee reductions regarding professional compensation for Individual Voluntary Arrangement services will only lead to more complaints and issues surrounding the marketing and delivery of IVAs.

Just in the past week, some IVA firms are starting to fold up and with certainly more to come. What people generally don't appreciate is that the there are tremendous costs involved with finding appropriate candidates for IVAs.

In a perfect world the marketing of Individual Voluntary Arrangements includes many ancillary services that are delivered for free to consumers based on the total income derived from IVAs. These services include many, many hours of free advice, consumer education, general debt education to the public and many other unpaid public benefit services to consumers.

In the United States, as creditors tightened the noose around the necks of Consumer Credit Counseling Service (CCCS) groups, the primary delivers of debt assistance services, the first services to fall by the wayside were the free educational and general debt advice overhead that was no longer supported by the lower fees generated from creditors through the delivery of debt management services.

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A company that provides controversial individual voluntary arrangements (IVAs) was fighting for its future last night after its shares were suspended and it had to call in insolvency experts.

Debt Advisor Group, which employs 150 people in Bury, Lancashire, had been in discussions about a possible takeover, which failed to come to fruition, but the group insisted it was still hopeful that a new suitor might be found. Mark Cawood, marketing director, said the group was still aiming to sell itself as a going concern.

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A FLOORING tycoon siphoned more than £600,000 from his failing firms and fled to Dubai leaving 25 staff on the dole.

Darren Gemmell has been banned from being a company director for nine years after a probe by the Insolvency Service.

They found he transferred £645,000 from Glasgow businesses Larry's Laminate Land and Robyn's Rug Gallery days before they collapsed with debts of more than £500,000. It was paid into his personal account in Dubai.

Gemmell, 36, then fled to his luxury flat on Jumeirah beach in the tax haven, where he also owns a property in the £7.2billion Palm development, while 25 staff turned up for work.

Insolvency experts Findlay Hamilton were left to try to get creditors their cash back.

The report says: "Those transfers were to his benefit and to the detriment of creditors."

After the DIY king fled in April 2005, one worker said: "We're sickened he is living it up in Dubai while we scrabble about looking for work."

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Trade Group R3 Speaks Out - Nick O'Reilly

When I heard last week that Capital One had announced it would refuse IVAs with fees totalling more than £4,500, I was staggered.

Why? In effect, Capital One was calling for IVA fees to be capped under a one-size-fits-all approach. It was perfectly within its rights to do so. But such an attack on insolvency practitioners by an individual financial institution at a time when an industry-wide body is contemplating wholesale changes seems extraordinary.

Some financial institutions simply do not understand the work our members do. To make such a pronouncement a week ahead of an industry-wide forum called to thrash out all the issues around IVAs proves the point. Given that we represent 97% of this industry, we will not let this go unchallenged.

As you may know, the meeting was due on 31 May. We at R3 will have sat down with organisations including the British Bankers’ Association, the Insolvency Service and all the other major interested parties, with the shared aim of developing proposals covering not just IVA fees, but also other crucial issues such as how they are marketed.

We oppose fee capping not just because it’s unfair to our members but because it will be unfair to consumers and our creditors too. Given the imminence of that meeting, you might think Capital One’s intervention unhelpful, or at best irrelevant. It also appeared timed to highlight the fact that whatever might be agreed at the meeting, the proposals may not be universally accepted. That’s the prerogative of operators in a free market.

The reason why a capped approach to fees does not work is that every IVA reflects a unique set of circumstances and needs. Advising on an IVA is not a standardised process suited to a one-size-fits-all fee structure. Such a message does our members a great disservice.

I also think it is a message that may backfire on its source. If the fees for an IVA are capped at £4,500, then a lot of practitioners will simply leave the IVA marketplace. The result will be less choice for consumers, and many people who could have done an IVA will go bankrupt instead. And if they go bankrupt, then companies like Capital One will actually get less of their money back than under an IVA.

As we all try to seek out the best way forward for IVAs, I would be delighted to sit down with Capital One – as with every other interested party with something to contribute. But until we have done that, I think we should all focus on formulating our ideas rather than trying to grab the limelight.

Nick O’Reilly is vice president of Insolvency group R3.


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A creditor is a party (e.g. person, organization, company, or government) that has a claim to the properties or services of a second party. The first party, in general, has provided some property or service to the second party under the assumption (usually enforced by contract) that the second party will return an equivalent property or service. The second party is frequently called a debtor or borrower.

Simply put, creditors are people to whom someone owes money.

The term creditor is frequently used in the financial world, especially in reference to short term loans, long term bonds, and mortgages. In law, a person who has a money judgment entered in their favor by a court is called a judgment creditor.

The term creditor derives from the notion of credit. In modern America, credit refers to a rating which indicates the ability of a borrower and likelihood to pay back his or her loan. In earlier times, credit also referred to reputation or trustworthiness.

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Concern has been voiced over the long-term problems that could arise from student loan debts, with fears that graduates could face substantial financial difficulty and insolvency, creating a barrier to future prospects.

Highlighting the negative effects of incurring heavy debt soon after university Credit Action spokesperson Chris Tapp warns that early insolvency can prevent graduates from entering various professions such as law or accountancy, for example.

He also asserts that debt problems can make it difficult to secure a mortgage, which is particularly important in light of reports that first-time buyers are finding it difficult to afford new homes.

"If somebody at quite a young age struggles with a debt problem and is forced to go into an IVA or bankruptcy or something like that, then that affects their credit rating over the next six years, their ability to get a mortgage, their ability to work in certain types of profession," explained Mr Tapp.

Credit Action states that student loans in themselves do not cause a significant debt problem for graduates, but contributes to a culture of debt.


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The number of corporate insolvencies is expected to rise around the world because of declining economic growth, higher debt and rising interest rates, the world's largest credit insurer said on Monday.

Euler Hermes said its Global Insolvency Index is expected to increase by 7 percent this year, compared with a fall of 17 percent in 2006.

As many as 29,800 companies, including small enterprises with only one employee, may go bust in the United States this year, followed by 27,300 in Germany, 24,300 in Britain and about 9,400 in Italy, firm said. "The economic downturn that began in 2007 will increase risks for companies, and it will also add more risk of bad debts," said Euler Hermes, a unit of German insurance company Allianz (ALVG.DE: Quote, Profile , Research).

At present, interest payment failures remain at historic lows. The amount of liquidity provided by investors, including hedge funds, and their willingness to fund distressed companies has kept struggling businesses afloat while pushing the price of distressed debt to almost par levels.

Investment banks such as Goldman Sachs Group Inc. (GS.N: Quote, Profile , Research) and Morgan Stanley (MS.N: Quote, Profile , Research) have expanded their restructuring teams, in anticipation of a rise in the number of insolvencies.

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Isolvency practitioners and banks are meeting later today in a bid to reach agreement on contentious areas surrounding individual voluntary arrangements (IVAs).

IVAs have become a popular way of managing debt problems thanks to the huge growth in personal debt in the UK. They are legal contracts between borrowers and lenders which allow people to pay off a proportion of their debt and write off the rest.

Companies specialising in IVAs make their profits by charging banks a fee for organising the repayment, from £4,000 up to £8,000. But banks claim these fees are too high and are calling on insolvency practitioners to rethink them.

Stakeholders from both sides of the finance fence have expressed their enthusiasm to "nail the detail".

Speaking on BBC Radio Five Live, Eric Leenders of the British Bankers' Association said he wanted the establishment of "some hard and fast proposals that everyone can sign up to".

"That would include of course process efficiencies and certainly would help consumers because of course we'd be looking to far more simplified paperwork which would be much more accessible I would say for them," he said.

Nick O'Reilly, vice president of the Association of Business Recovery Professionals, said he welcomed the "opportunity" of today's meeting and said a lot of progress had been made in the last few months.

"I think it's probably a question that banks don't necessarily understand the work that insolvency practitioners have to do to put a voluntary arrangement in place," he said.

"What we're… moving towards is a system whereby a certain proportion of the fee is paid first but the insolvency practitioner firm waits for a while to get the balance of their fees, and I think that's probably helpful to all parties."

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Several reports claim that UK insolvency rules must change if London is expected to keep its status as the UK’s leading financial centre, according to The European High Yield Association (EHYA)

The EHYA warns that the legislation is out dated and unable to handle complex restructuring projects that will hit the market when the economy faces its next downturn.

The restructuring professionals sent a letter to the Treasury claiming that the legislation must ease the power it gives customers and suppliers when debt ridden, or restructuring companies, enter the administration phase. It should also take away the veto rights held by some who do not see a financial gain in it for themselves.

‘The wider dispersion of debt may make traditional workouts unachievable,’ warned the association.

The ramifications of this will be felt all through the UK economy, but it will hit London like a tidal wave. Millions of consumers who took out massive mortgages and personal loans to move to, and live in, London will find themselves forced to move, or facing unemployment if financial companies go bankrupt, or are forced to move.

The negative equity felt by the London market alone will be enough to drive the economy into a recession, maybe even a depression, as millions of homeowners loose their homes and are forced into bankruptcy.

There is no word whether the government plans to change the insolvency rules, or whether they feel that the number of global corporations that located in London will buoy the economy.


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The fallout from the Just Group’s insolvency led to one of the messiest insolvency disputes in recent years
Alex Hawkes, Accountancy Age, 31 May 2007
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A businessman, who tried to have Coopers & Lybrand wound up in the 1990s, launched a stream of abuse against another party in one of the messiest insolvency disputes of recent years, a court has heard.

Mark Hardy called Christopher Jones, another party involved in the fallout from collapsed Just Group, a 'slimeball' and a 'frigging liar' on bulletin boards covering the subject.

Hardy told Jones at one point: ‘I intend to nail your nuts to the mast,’ the City of London magistrates court heard.

Just Group owned the rights to cartoon characters the Butt Ugly Martians, and the fallout from the group’s insolvency has led to unpleasant spats.

Hardy holds a power of attorney over Think Entertainment, a company formed in 2004 as part of a restructuring of Just Group, while Jones was involved in a rescue plan that attempted to revive the company in 2002.

Hardy was alleging in court that Jones had been paid unlawfully in his time at the group, and wanted magistrates to issue a summons. Jones categorically denies the allegations. The court eventually refused the request, saying it would be vexatious, malicious and constitute harassment.

Stephen John, acting for Jones, told the court that Hardy’s attempt to obtain the summons was part of a sustained campaign of harassment that, in one instance, had led to Jones contacting the police.

Hardy called Jones a 'lying scumbag' on bulletin boards, John said. ‘What language is [this] for someone holding a power of attorney?’ John said.

Hardy said: ‘The language gets colourful, that’s the nature of these bulletin boards.’

Hardy has already made accusations in court against KPMG administrators involved with Just Group.


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With bankruptcy and insolvency predicted to grow by 50 per cent over the next five years, the Insolvency Service wanted to adopt new practices that would help it to work more efficiently. The challenge is to cope with a growing caseload while maximising resources, according to Allan Cook, change programme manager.

‘The aim of the Insolvency Service is to deal fairly and effectively with financial failure and corporate and individual malpractice,’ he says.

Following a competitive procurement process considering BPM technologies, the Insolvency Service chose Lombardi’s TeamWorks platform to manage various core business processes across its 36 offices in the UK.

‘Initially we modelled all the insolvency processes and are now automating them as much as possible, so that everybody across all our offices works in the same way,’ says Cook. ‘Each office, while achieving the same outcomes, had adopted slightly different ways of completing the process.’

One of the main reasons for choosing TeamWorks, was its ability to gather data for further analysis.

‘We can take the metrics from the processing of cases and simulate where future bottlenecks may occur,’ says Cook. ‘It is this ability to refine our processes that is going to contribute to process improvement. We have the facility to predict where we are going to experience problems, and that means we can put measures in place to minimise or eliminate them.’

Compliance is important, and the BI provision within TeamWorks delivers better management information which allows the Insolvency Service to improve processes further.

‘We are reducing redundancy and waste in the system’, says Cook. ‘It is a question of getting the right piece of information to the right person at the right time, so that they have accurate, real-time information to make decisions. In the past, as a result of a delay or a change in circumstances, the information has been out of date.’

Although the project is in its early stages, the Insolvency Service has seen a significant improvement in the way it works and has increased productivity. While the initial phase of the insolvency process has to be completed at a local office, the new system means the work can be completed at any of the other offices around the country, smoothing out the workload. However, for Cook and his team the main benefit has been the ability to forecast problems.

‘What we have is a tool to help us discover the pinch points in our processes,’ he says. ‘TeamWorks can forecast the bottlenecks, if the caseloads follow the same trends as in the past, and that means we have the time to do something about it.’


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