Taxpayers are unlikely to see most of the £148 million owed by PPE Medpro, the company linked to Baroness Michelle Mone, after it was wound up at the Insolvency and Companies Court.
The company, a consortium led by Baroness Mone’s husband Doug Barrowman, was found to have breached a contract to supply 25 million surgical gowns during the coronavirus pandemic.
But it was put into administration before the High Court found in favour of the Department of Health and Social Care (DHSC).
James Robertson, dispute resolution partner at London law firm Spector Constant & Williams comments: “As predicted PPE Medpro has failed to repay the £122m owed by it to DHSC and accordingly has been placed into liquidation.
“The chances of recovery of even a proportion of this sum appear to rely on the government’s appetite to fund a liquidator to pursue claims against the directors and possibly the ultimate beneficial owner of the company, Mr Barrowman.
“Piercing the corporate veil and going after such individuals is notoriously difficult especially in circumstances where those individuals may not even have sufficient assets in this jurisdiction to pursue.
“Mr Barrowman has previously suggested that the consortium of companies is willing to discuss at least some repayment of the judgment debt, but it is presently unclear how far such discussions have got, or if they have started at all.
“This has the hallmarks of ending up being a pyrrhic victory for the government albeit that Mr Barrowman and Mrs Mone still have the spectre of the long running NCA investigation looming over them.
“Perhaps the liquidation of PPE Medpro will now lead to a speedier conclusion of that investigation with the hope that at least some taxpayer money will be recouped.”
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