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Investigation launched into liquidation of property firm

Date Added: 12/02/2013  

A property company that stayed in liquidation for several years is the subject of a new investigation by the Insolvency Practitioners Association (IPA).

Millbraid went into liquidation in 2006 and creditors of the firm have expressed their frustration with having such a long wait for their debts to be repaid.

The owner of the company, Michael Karus, 51, was jailed for three-and-a-half years for embezzling £400,000 from a pensioner’s estate, reports the Scotsman.

One former business associate of Karus described the seven-year liquidation of the property firm as a "ridiculously long time" for the process to drag on.

"During most of that time, Karus was banned from being a company director so he shouldn't have had anything to do with the process. There were 20 properties in the company but only three are left now. It's impossible for a liquidation to take that length of time. You have to wonder what's being going on," they said.

Glasgow-based insolvency practitioner Kenneth Pattullo has been appointed as the liquidator of the company and the IPA has powers to investigate the process if it believes it has been taking too long or not carried out in the proper manner.

It is believed that a complaint has been made to the IPA over the way Mr Pattullo has been handling the liquidation of the property company over the last few years.

Once the IPA has conducted a full investigation into the matter, it is able to reprimand the liquidators of a business if improper behaviour is uncovered.

A spokesman for the IPA said they were unable to comment on whether or not they were looking at Millbraid.

Earlier in the month, it was revealed that the former Anglo Irish Bank was set to go into liquidation, which would pave the way for a restructuring of Ireland's most controversial bank bailout.

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Posted by Julie Cutts

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