The former directors of Cotswoldgate moved a step closer to facing legal action for wrongful trading after the administrator of the collapsed housebuilder confirmed to creditors his intention to liquidate the company.
The move follows a meeting this week between administrator Deloitte and subcontractors owed money by Cotswoldgate.
A source at the meeting said the administrator’s “initial feeling” was that there was enough evidence to pursue the directors of Cotswoldgate for wrongful trading.
It is also understood that the administrator will send a critical report of their conduct to the Department for Business, Enterprise and Regulatory Reform. The administrator confirmed to Building that “an informal meeting” had taken place but said no formal resolutions were passed.
Gloucester-based Cotswoldgate went into administration in April owing an estimated £3m to more than 30 subcontractors. A number of firms say the company deliberately accelerated work on projects despite being aware of the company’s inability to pay suppliers. Richard Perrill, Cotswoldgate’s former managing director, has consistently denied this.