Texas American sues Facia team
Sunday 18 August 1996
The law firm is one of five defendants named in a writ by would-be Facia purchaser Texas American Group, which it said was lodged with the High Court on Friday. Others named include Hammond Suddards partner Patrick Jolly as well as Mr Hinchliffe and fellow Facia directors Christopher Harrison and Gary O'Brien.
The US group is claiming damages for alleged misrepresentation after spending, it claims, $750,000 (pounds 496,000) in pursuing the purchase of Facia just before it collapsed at the beginning of June. This weekend, none of the directors was available for comment, but Mr Jolly expressed surprise at the move and vowed to fight any claims.
The SFO is already investigating the crash and is still logging vanloads of documents seized 10 days ago in raids on five premises, including Mr Hinchliffe's homes and Facia's headquarters. Last week, Facia's creditors met in London and heard that they may only receive a pounds 700,000 payout on unsecured debts of up to pounds 60m, which includes a pounds 30m claim from retail giant Sears.
Several small suppliers to Facia have already gone bust as a result. Facia's secured bank lenders, however, have already been paid more than pounds 8m.
The receivers are continuing to investigate millions of pounds of loans and fees paid to Mr Hinchliffe and his web of private companies and still hope to recover pounds 5.6m for creditors.
Among the assets they are also trying to trace are 100 company cars, including Mr Hinchliffe's Mercedes, with its personalised SH1 number plate, and Mr O'Brien's Mercedes and Aston Martin Vantage Volante, which bear the number plates M1 GOB and VV1.
Last week Mr Harrison, the other Facia director, finally provided sworn statements - which were due by law within 21 days of the collapse - on the seven Facia firms. Only one, for the Salisburys luggage shops, arrived in time for the meeting, but it showed that he estimated that the chain was already insolvent to the extent of pounds 10m at the time of the crash.
Salisburys was the first of Facia's purchases, in August 1994, and Hammond Suddards is understood to have advised Mr Hinchliffe from January that year. The firm gave legal advice during the talks with Texas American Group, which started in February this year and were ended by the receivership.
It is also representing Mr Hinchliffe in proceedings by the Department of Trade and Industry to disqualify him and Mr Harrison as directors after the collapse of tennis court maker En-Tout-Cas in 1993.
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 3 UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
- 5 Men behaving badly: Urinating while standing, 'manspreading' and the gendering of selfishness
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
Ellen DeGeneres leads Johnny Depp, Gwyneth Paltrow and Paul Bettany in revealing game of Never Have I Ever
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...