Liquidators agreed to sell the only asset from the £2 million-plus collapse of Gary’s Hexley’s Greenfield International back to his wife – but she defaulted on the car deal.
Birmingham-based Dains struck an agreement with Michelle Hexley to buy the vehicle – registration M4 HEX – for £5,000, but have yet to receive a penny.
The transaction is revealed in the joint liquidators’ annual report into the demise of Sutton Coldfield-based Greenfield, which left 237 creditors out of pocket to the tune of £2,077,426.05.
The report also reveals that Mrs Hexley agreed to personally indemnify Dains for up to £10,000 plus VAT to cover the costs of a creditors’ meeting, but to date only £3,000 has been received.
Joint liquidator Martin Smith says in his report on the car deal: “Following my appointment I received an offer from Mrs Hexley to purchase the vehicle for £5,000.
“The offer was accepted following advice from my agents. However, despite my repeated effort in attempting to obtain payment to date, no funds have been received.
“I am currently in consultation with my solicitors as to whether legal action should be taken to recover either the vehicle or the funds.
“The cost of applying to court would outweigh the cost of the vehicle; it was therefore decided that it would not be cost-effective to repossess the vehicle,” he added
“Attempts are still being made to contact Mrs Hexley to either arrange for payment for the vehicle or for collection of the vehicle.”
On Mrs Hexley’s personal pledge of £10,000, Mr Smith says: “Mrs Hexley agreed to personally indemnify my firm’s fees up to £10,000 plus VAT and disbursements for calling a meeting of creditors under Section 98 of the Insolvency Act 1986 and carrying out the liquidation if appointed by the meeting.
‘‘Despite numerous correspondence and telephone calls, to date only £3,000 has been received.”
Mrs Hexley could not be contacted for comment.
Her husband, who could not be contacted either, was declared bankrupt in May 2010 with liabilities of £979,820. He was later banned and censured by the Financial Services Authority.