Written question WQ89559
- Asked by
- Janet Finch-SaundersConservative
- To be answered by
- Minister for Economy
- Tabled
- Due
- Answered
- Time to answer
- 8 days
Question
What steps does the Welsh Government take when debtors go into liquidation owing the Development Bank for Wales several thousands of pounds?
Answer
Answered by Minister for Economy
Following the failure of a company, and where there is an amount owed to the Development Bank, all available routes to recovery are explored.
Where a business enters a formal insolvency process such as administration or liquidation, the Development Bank will liaise closely with the Insolvency Practitioner to ensure recoveries are maximised.
The distribution of the proceeds following the sale of assets are managed according to the hierarchy set out in the Insolvency Act 1986. Any distribution would be after settlement of preferential creditors (for example company employees or HMRC) and fees associated with the insolvency.