The Bounce Back Loan Scheme (BBLS) has been a useful tool for some businesses to carry on trading through the pandemic. The loan was designed to help pay staff wages, business rates and any other overheads.
If a company enters an insolvency process, the BBL will become an unsecured debt in the insolvency, banks will have to claim the money back from the Government who guaranteed the loan. Personal guarantees were not required by the banks to provide the funding.
An appointed liquidator, as part of his duties, will investigate the conduct of the directors of a company. If he finds that the BBL has been misused by directors such as buying themselves supercars, paying off personal loans etc, the corporate veil will be lifted and the director will be personally liable for the misused funds.
if you need information on liquidations, administrations and any other insolvency process, or if your business is a financial victim of the pandemic, please telephone Stella and she will make you an appointment with one of our insolvency professionals. We have offices in Driffield, Grimsby, Hull, Scunthorpe and York. Meetings can be held in any of our offices whilst observing the socially distancing guidelines or virtually.