New 215m pounds lawsuit for Kevin Maxwell (CORRECTED)

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The Independent Online
CORRECTION (PUBLISHED 8 MARCH 1993) APPENDED TO THIS ARTICLE

KEVIN MAXWELL, who last year became Britain's biggest bankrupt, owing pounds 407m, is being sued for a further pounds 215m by the administrator of his father's main public company, Maxwell Communication Corporation.

The writ came after Mr Maxwell was forced to submit to interview by the administrator, Price Waterhouse. It is looking for more than pounds 300m apparently transferred out of MCC in the months before its collapse in December 1991.

The action could mean that MCC's creditors would be able to claim a share of any estate unearthed by Mr Maxwell's trustee in bankruptcy, BDO Binder Hamlyn. Mr Maxwell became chairman of MCC after his father's death, having previously been managing director.

PW has indicated that it may also sue Kevin's brother Ian, who is fighting a bankruptcy action brought against him by Robson Rhodes, liquidator of the Maxwell pension schemes. Ian Maxwell was a director of MCC, but concentrated his activities on the Maxwell family's other public company, Mirror Group Newspapers.

The action is understood to be for alleged breaches of fiduciary duty by Kevin Maxwell while the brothers were directors of MCC. It leaves open the possibility that PW may also take action against other former directors of the group, such as Peter Laister, the former chairman of Thorn EMI, and Lord Walker of Worcester, the former cabinet minister who received a pounds 500,000 pay-off when he left the company in September 1991.

PW has also made dollars 500m ( pounds 345m) worth of insurance claims against fraud insurance taken out by MCC before Robert Maxwell's death. The accountants have lodged 18 different claims with policies taken out at Lloyd's, largely through the brokers Willis Coroon.

CORRECTION

On 3 March, we reported that Kevin Maxwell was being sued for pounds 215m by the administrator of Maxwell Communication Corporation. This was inaccurate. The true position is that the administrator has lodged a claim for approximately pounds 215m with Mr Maxwell's trustee in bankruptcy. No proceedings have been issued.

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