DEBT 'RESCUE' BOSS SLAMMED

Firms in trouble told they could 'go bust without consequence'

- MARK MCGIVERN

A TYCOON has been slammed over a scheme that allowed "distressed" firms to go bust and avoid millions of pounds of debt.

The Insolvency Service wound up two "corporate rescue" firms led by John Irvin Atherton Corporate (UK) Ltd and Atherton Corporate Rescue Ltd accusing them of "several misrepresentations" and "misleading" clients.

According to the government agency, company directors were told they could go bust and still keep their company's assets, continue to trade the business through a new "phoenix" company and avoid debt responsibility.

Irvin connected owners of distressed firms with new directors who would nominally buy the company and take responsibility for winding it up.