Member Article

hlw Keeble Hawson represents credit union in winding up

hlw Keeble Hawson has acted in the winding up of the Redcar & Cleveland Money Tree and Glen Credit Union.

Launched in September 2009, the North East based credit union, which had 800 members, was wound up after its liabilities of over £208k exceeded its assets of £138,557.00 - and because it lacked additional funds to pay the ongoing costs of trading.

The winding up of the credit union triggered the protection of the Financial Services Compensation Scheme (FSCS), which reassured investors that their money was safe, and in the overwhelming majority of cases, would be repaid within seven days.

David Guest, a partner in the Insolvency team at hlw Keeble Hawson, who acted for Andrew Little and Peter Gray of Rowlands Restructuring and Insolvency in Yarm, the Joint Liquidators, said: “We were approached because of our expertise in this area. It is very unusual for a credit union to take such action, but not unheard of in the current financial climate. The professional manner in which the directors and staff of the credit union acted prior to its winding up, and the protection of the FSCS, does at least mean that investors will be repaid in full within a short space of time.”

With offices in Sheffield, Leeds and Doncaster, hlw Keeble Hawson is one of Yorkshire’s biggest law firms.

This was posted in Bdaily's Members' News section by hlw Keeble Hawson LLP .