Ace Building and Maintenance Services Ltd was incorporated in June 2017. They completed general maintenance work on buildings. 


Claims made by the Directors


Two directors of the business both received 11-year bans after they failed to dispute that they caused their company to apply for £100,000 of claims. David Garry Harrison, 48, and Paul Hudson claimed for loans that their company was not in fact entitled to. The two are from Devon and are now disqualified from indirectly or directly becoming involved in the formation, management, and promotion of the company, without the permission of the court. 

David Harrison’s ban became effective on 31st May, while Paul Hudson’s disqualification began on the 9th of June. The business however began to struggle and by October 2019 had a winding-up petition presented against them as they were unable to pay their debts. 

Both Mr. Harrison and Mr. Hudson discussed insolvency arrangements before causing the company to enter into a company voluntary arrangement in February 2020. A creditor’s voluntary liquidation followed in December 2020. The company stated that its liabilities were more than £340K. 


Bounce Back Loan 


Ace Building and Maintenance Services Ltd’s first insolvency generated an investigation by the Insolvency Service. This was before investigators found that Mr. Harrison and Mr. Hudson caused the company to submit applications for the Bounce Back Loan which the company wasn’t entitled to. 

The two successfully applied for a £50,000 BBL. However, they failed to declare that the company was distressed, and had entered the company into a company voluntary arrangement. They had close to £110,000 worth of liabilities. A second fake application was submitted, and again both failed to declare the company’s difficulties. Or, that Ace Building and Maintenance Service Limited had already received the maximum claim amount allowed under the BBL scheme. 

During the Covid-19 pandemic, the Bounce Back Loans provided businesses who were struggling with a lifeline. But Mr. Harrison and Mr. Hudson applied for this loan when they were not entitled to receive monetary help under this scheme. Even though they were fully aware that their company was insolvent, and would not be able to pay back its debts. 

The 11-year disqualifications will protect both the public and creditors. Whilst displaying the potential consequences of misusing government schemes. 

The liquidator of Ace Buildings and Maintenance Services Limited is considering the BBL and recovery of the funds. 


About the author


Iain Bould

Iain heads Beeston Shenton’s commercial litigation department.

Iain has 30 years of experience in Commercial Debt Recovery and Insolvency fields having worked in both Private Practice and Industry and has extensive experience working across all industry sectors and has particular expertise in working with Insolvency Practitioners in advising and recovering outstanding insolvent company ledgers. Iain brings a pragmatic and commercial approach.


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