BL-2022-000438 - [2025] EWHC 2212 (Ch)

Fecha: 22-Ago-2025

The Liabilities of the Company in March and December 2010

G.3.2.

The Liabilities of the Company in March and December 2010

116.

In assessing the solvency of the Company, I consider that it is necessary to take into account liabilities including contingent liabilities in assessing the Company’s solvency.

117.

The Company would incur costs in effecting the sale as set out below which must be brought into account. For present purposes, it does not matter conceptually whether they are analysed as part of the net value of the assets on realisation or as contingent liabilities.

(1)

The costs of an estate agent which were likely to be 8% to 10% plus VAT (of 15%). I consider that 8% plus VAT is a reasonable estimate;

(2)

The fee payable to Mrs Heyes of 1.3%;

(3)

Legal fees which were budgeted (based on an earlier budget from May 2008) to be €28,175 + VAT.

118.

As is explained in the Company’s financial statements, the main liabilities of the Company were the “payables to related parties”. The table below shows these liabilities based on the financial statements for the year ended 31 December 2009 and 31 December 2010. For the figures for the 9 March 2010, these are taken from the shareholder funds document.

Creditor	31/12/2009	09/03/2010	31/12/2010
Peter Dunn	€2,603,485	€2,728,043	€3,252,944
Kostas Kazolides	€282,019	€282,019	€282,019
Christopher Stylianou	€244,271	€244,271	€244,271
TOTAL	€3,129,775	€3,254,333	€3,779,234

119.

As explained above, I consider that the best realisation for the Company would have involved selling the villas completed rather than selling them in an unfinished state. In those circumstances, in March 2010, I consider that it would have been reasonable to assume that it would take another six months to complete the villas and to sell them. Accordingly, in assessing the Company’s liabilities as at the beginning of March 2010, it is necessary to include:

(1)

The likely costs of completing the villas. These were budgeted to be €105,000. By June 2010 the budgeted figure had increased to €174,000;

(2)

The costs of maintaining and insuring the villas which was likely around €4,000 per month or €24,000 over six months.

(3)

The financing costs for the Company until the point at which the sale of the villas would complete which at its earliest would have been, around six months, when construction of the villas was finished. Interest was running on Mr Dunn’s loan at 8% compounded which amounted to over €50,000 per quarter or €100,000 for six months.