As many of you know (some to their cost), Aristotle Corporation are in the process of going belly up. We have some fresh news on the situation.
According to insolvency experts that we spoke to, once a company goes into administration, the administrator has got to pay the new invoices of the contractors concerned the full rate.
Just to make clearer what that means, it doesn‘t mean the old invoices that were received before the administrator was appointed, but only the new ones that were received from the day the administrator was appointed.
The big problem here is that we don‘t know if an administrator has been appointed or not.
I had thought that a part of the winding up order meant that an administrator or liquidator would be appointed. However, although that will eventually be the case, the winding up order is only the first part of the process.
It seems that it is a contractor who has forced the winding up order on Aristotle Corporation.
The most likely reason for this is so to try to pressurise them so that he can get himself to the front of the queue for payment, i.e. it is a threat of ‘pay me in full or I‘ll have your company liquidated’.
I have tried to find out, through a contractors‘ professional body, whether an administrator is in place or not, but after an initial discussion my calls aren‘t being taken or returned.
The contractor who has started the proceedings has been informed that we would like to talk to him, but he hasn‘t as yet, been in touch.
That‘s understandable if he wants to make sure that he gets paid in full before everyone else.
However, as regards other contractors, the first thing that they should do to safeguard future payments (besides the options we put in a previous article ‘Options Open to Working Aristotle Corporation Contractors’), and to try to get as much back as possible from the old invoices is to get an administrator appointed who will look after their interests.
Some contractors have already contacted us to get organised to take action as a group and the more that do so the merrier. We are already getting professional help, but this will depend on the number of contractors who contact us.
If anyone wants to join this group please contact us at [email protected]
Also, three different agencies have contacted us offering to take on contractors who have their contracts broken through lack of payment. They , of course, see it as an opportunity, but it may suit contractors as well to get a new agency who would know the wheres and wherefores of how, legally to get out of their contracts.
Some contractors may want to go direct, but others may feel they need the safety of an agency or work at a company who don‘t take contractors direct.
If anyone wants a new agency they should contacts us as well.