According to a recent report, a lawsuit has been filed against the London Block Exchange (LBX) by a creditor, through the Law firm— Squire Patton Boggs (UK) LLP. The creditor is of the strong belief that the firm should be shut down.
The exchange got served on the 19th of March and the hearing is expected to take place on Tuesday.
Confirming the lawsuit, a partner at Squire Patton Boggs, Russell Hill said that:
“We filed a winding-up petition against the company as a matter of public record for a debt we are owed. At this stage, because of ongoing litigation, it’s not appropriate for me to say anything more.”
A creditor with debts of more than 750 British pounds (around $968) can ask a solicitor to close the debtor form in order to pay up debts or to prevent the company from adding to the present debts. The action is considered to be a serious one to take against a company, if they act fast, directors of the firm might even end up with personal liability for the debt.
London Block Exchange (LBX) is Not Going Out of Business: CEO
According to Dives, the total debt is £9,900 (about $12,787) and the law firm had already drafted the terms and conditions for the LBX’s website and even played some legal roles. However, over time, the debt hasn’t been paid and so the law firm was crossed and then demanded a higher fee.
He said:
“The bill didn’t come to my attention until it was very late,”
He also claimed that the exchange transferred the money to the firm, but due to some unknown reasons, the money was never delivered to Squire’s account.
He then said that he strongly believes that the court will rule in favour of LBX.
He further said that:
“We’re getting calls from people who think we’re going out of business, but we’re not going into liquidation.”