Creditors & collection: Recovery claims
Can a creditor recover money owed by a person (natural or corporate) who is subject to a restraint order under Part two of the Proceeds of Crime Act 2002? The issue has recently been considered by the Court of Appeal in SFO v Lexi Holdings & M. The outcome has worrying implications for creditors.A restraint order (RO) under Part two of the Act is an interim order made in the Crown Court 'prohibiting any specified person from dealing with any realisable property held by him'. Dealing includes paying creditors. It does not confer any rights in relation to that property. It is essentially a means to an end; the end being the satisfaction of a confiscation order.
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