And investigations into what was claimed to be a deficient audit of the company by BDO were ongoing.
Creditors had gathered to hear an update of the progress being made by the joint liquidators against the company, which had been known as RG Falla until just before it went into liquidation in March 2023.
Leonard Gerber of the joint liquidators said that the allegations were all being investigated and he would be handing a report on them to the police next week.
One claim, which he said was ‘just the tip of the iceberg’ involved that some of the directors had chartered a private jet to go from Guernsey to San Sabastian in Spain, where they allegedly stayed at a top-end hotel and dined at fine restaurants.
‘Given that many people in this room have lost money due to the company’s liquidation, this conduct... does not sit well with me,’ he said.
There was also an issue involving auditors BDO and he was continuing his investigations into that.
‘An audited company such as Hurel does not suddenly go bust owing tens of millions of pounds.’
Directors of the company are being actioned personally by the joint liquidators for the sum of £3.9m. on the grounds of wrongful trading and misfeasance.
‘Since calling the annual meeting, we have been approached by some of the advocates for the director defendants with a suggestion to explore the prospect of alternative dispute resolution,’ said Mr Gerber.
Debtors had approached him for a mediation session and he said he was willing to negotiate ‘in a meaningful way’.
But he warned that if they were not prepared to do the same he suggested that another annual meeting of creditors will take place before the end of this year.
‘It is my intention to then disclose at such meeting the names and other details of those debtors who have failed to pay their debts.’
There were people at the meeting, or represented there, who still owed significant sums to the company.
‘My message to those people is that they can either pay their debts in full, or reach a compromise settlement agreement with me during the next few months.’
He would not be able to repay any dividends to creditors such as sub-contractors until these debts were recovered. Many of these were small local firms who had been hit hard by the situation and could ill afford not to receive some money back via liquidation recoveries.
If there was a meeting later this year he would provide an update on whether the legal action against the directors had been settled or was proceeding towards a trial.
‘What I would say is that if alternative dispute resolution is not progressed, we are motivated, funded, and supported by an expert witness report to proceed matters to trial.’
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