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Director banned for seven years after trading whilst insolvent

28 July 2015

The director of the Birmingham-based energy research company, Ultra Green Group Ltd, has been disqualified for seven years after continuing to trade to the detriment of creditors. 

Anthony Clive Blakey’s company went into liquidation in January 2011, owing £2,770,180. An investigation by the Insolvency Service found Blakey has transferred all his company’s technology and client lists to an overseas company for just £1, despite knowing Ultra Green Group was insolvent. It then continued to trade after the transfer, racking up a further debt of £629,000. 

This clearly is a breach of the Insolvency Act 1986 as creditors were poorly treated and left with no money. 

Robert Clarke from the Insolvency Service commented “The reckless manner in which Ultra Green was used to incur liabilities in pursuit of speculative projects placed creditors at high risk and exacerbated the losses ultimately incurred.”

“The Insolvency Service is committed to ensuring that creditors are adequately protected from directors who show such cavalier disregard for their interests.”

Directors have an important duty to act in the creditors’ best interests during insolvency. Failing to do so will put directors at risk of personal liability and could result in disqualification.