Read on for the full background of this case that led to the 7 year ban.
On 13 November 2020, in the knowledge that Sleepin Limited (Sleepin) was insolvent and having engaged an Insolvency Practitioner for the purpose of liquidating Sleepin, Mohammed Ali (Mr Ali) caused Sleepin to enter into a transaction to the detriment of its creditors.
In that
- The last full accounts filed for Sleepin, for the year ending 28 February 2019, showed accumulated losses of £73,868.
- During a meeting between an Insolvency Practitioner and Mr Ali on 13 August 2020, it was established that Sleepin was insolvent on both a balance sheet and profit and loss basis, and that the appropriate course of action was for Sleepin to enter Voluntary Liquidation.
- On 21 September 2020, the Insolvency Practitioner issued an engagement letter to Mr Ali which stated that Mr Ali had confirmed that he wished to place Sleepin into Liquidation.
- The letter of 21 September 2020 also stated that the assets of Sleepin should not be disposed of, nor should any payments be made to creditors of the company.
- On 05 November 2020, Mr Ali signed the Insolvency Practitioner’s engagement letter.
- On 13 November 2020, £8,238 was credited to Sleepin’s bank account, resulting in a credit balance of £3,714.
- On 13 November 2020, £8,238 was transferred to a third party connected to Mr Ali.
- On 20 November Mr Ali signed the Statement of Affairs for Sleepin, scheduling assets of £8,910 and liabilities totalling £109,610, including a £32,769 director’s loan, a Bounce Back Loan of £50,752, and trade and expense creditors totalling £26,089
