In their briefing with The Lawyer, members of 20 Essex Street's insolvency team discuss how, six years on the from 2008/9 financial crisis, there may still be time for claims from the 'twilight zone'.
"More time for claims from the 'twilight zone'
Claims are often brought against directors or other parties arising out of conduct pursued in the ‘twilight zone’: a time when the company moves from solvency to insolvency or doubtful solvency. As creditor pressure mounts, attention invariably turns to the actions of those responsible for the stewardship of the company’s affairs and the custodianship of its assets. The most common limitation period is six years, with time ordinarily running from the date on which the cause of action first accrued. Once the limitation period has passed, the claim is time-barred and potential claimants lose their entitlement to relief.
Accordingly, now we are more than six years on from the 2008/09 financial crisis, those with claims against companies that failed in its aftermath are finding that the sun has gone down not just on the company but also on their claims for relief.
However, all is not necessarily lost six years after the event…"