Issue - meetings

(Copy herewith)

Cabinet noted the actions that are being undertaken to recover the judgement debt and in particular noted that:

2.1      The Council is in the process of agreeing transfers to it of residential properties from Artefact Investments Limited.

2.2      The Council has commenced possession proceedings for Christina and David Cardoza’s property outside Northampton.

2.3      FRP Advisory Insolvency Practitioners LLP (Paul Allen) has been appointed as the Trustee in Bankruptcy for Anthony Cardoza.

2.4      Discussions are ongoing with Deloitte about the recovery of monies for NBC as major creditor through the First Land Limited liquidation.

2.5    Of the £200k maximum legal costs spend agreed by Cabinet at its meeting on 3rd April 2019 £141,564 has been spent.

Councillor Nunn as the relevant Cabinet Member referred to the report updating Cabinet on the enforcement actions in the Sixfields case. It was important that these were made public where possible.

The Borough Secretary stated that there had been a number of reports in private due to the live litigation and consequent risk to strategy.  In terms of liability, the Cardozas had been found to be in breach of fiduciary duties and efforts were now focused on the enforcement action to recover the judgement award and legal costs of £3m. 

The Borough Secretary reported that discussions were ongoing in the transfer of two properties from Artefact to NBC, and a charge had been made on David and Christina Cardoza’s house.  Anthony Cardoza had declared himself bankrupt and a Trustee in bankruptcy had been appointed.  First Land Limited had been put into liquidation by a separate party.  Discussions were ongoing with Deloitte regarding a funding agreement – value for money was needed.

Councillor Beardsworth stated that she was angry for the taxpayers of Northampton. The debt should be pursued and NBC should be more proactive in recovering the money.

Councillor Nunn stated that public updates were important and progress was being made.  The outrage was shared by all.

The Borough Secretary pointed out that money was put into First Land by the football club, not by NBC directly, so enforcement had to be done via a liquidator and needed to be cost-benefit analysed.  Councillor Beardsworth asked whether it had been known that the football club were putting money into a separate company.  The Borough Secretary stated that he had not been involved at that point, but it was not known from his reading of the documents.

RESOLVED:

Cabinet noted the actions that are being undertaken to recover the judgement debt and in particular noted that:

2.1      The Council is in the process of agreeing transfers to it of residential properties from Artefact Investments Limited.

2.2      The Council has commenced possession proceedings for Christina and David Cardoza’s property outside Northampton.

2.3      FRP Advisory Insolvency Practitioners LLP (Paul Allen) has been appointed as the Trustee in Bankruptcy for Anthony Cardoza.

2.4      Discussions are ongoing with Deloitte about the recovery of monies for NBC as major creditor through the First Land Limited liquidation.

2.5    Of the £200k maximum legal costs spend agreed by Cabinet at its meeting on 3rd April 2019 £141,564 has been spent.