by Peter Sinnett, In-house Counsel, Bermans, Lawyers
Bermans was recently involved in a difficult and unusual High Court application for a factor which found itself as the victim of very unfortunately timed events involving client insolvency. The facts of the case illustrate that it is not safe to rely on the winding up alert procedures offered by the large credit reference agencies.
The facts were as follows:
on 2 November the client executed a Factoring Agreement after the factor had exercised its normal due diligence procedures including searching for the existence of a Winding Up Petition with its usual credit reference agency;
on 6 November invoices to a value of Ј181,000 were offered to the factor and this assignment became effective the next day;
