John Verrill, the president of the Association of Business Recovery Professionals(R3), the body representing insolvency practitioners and company doctors, slammed the banks for delaying payments of up to Ј200 million to creditors of insolvent companies.
The comment comes after claims that some UK banks have continued to refuse to accept that a Privy Council judgment on the Brumark case affects them in any way. The judgment delivered almost two years ago, casts severe doubt on whether the banks can claim a fixed charge and consequently have claim to debtors’ funds before preferential creditors.
