Legal Eagle as such herebut not an Insolvency Practitioner but will try my best??
The problem that all unsecured creditors have is that most directors hide behind there limited companies and as your contract was made with the limited company and not the directors themselves it would be very hard and extremely expensive to try and fight a civil case through the county courts to prove the directors were acting out of line.
The administrators however are suppose to be acting on your behalf as well as the secured creditors ie the bank and HMRC (although not a secured creditor they are always on the top of the pecking list). They are duty bound to investigate whether or not any unlawful dividends have been drawn etc by the directors as if they can prove the company was failing and monies still been drawn out within the last so many months ( I cant quite remember the period of time it may even be years) the directors can be asked to repay this money back to the company.
However the big problem here is in my experience the Administrators normally take a huge chunk of the available funds for their costs which they always received before anyone else is even considered.
I work in credit control and I have to agree with the above. The administrators take such a huge chunk for their services that not a great deal - if any - is left. They have to pay any staff wages owed, pensions, followed by any secured creditors and then after all that, if there's money left anyone else who stakes a claim. The best that can happen is a dividend on the money owed - i.e. 10p for every £1 you're owed.
I just hope that in 3 months we don't see them trading again under a different name with all their debts wiped clean!
