[Starion13]

All may not be lost for Ross and SBR. Scott's company, being in liquidation, gives him some interesting options. Assuming Scott is/was a director of the company, he has a fiduciary responsibility not to engage or commit the company to any financial undertakings if "to an ordinary person" it is apparent the company may be insolvent at the time and unable to pay its debts as and when they fall due and/or likely to become insolvent as a result of the transaction. Its called "Insolvent Trading". In such circumstances and if proven, the officers of the company can be held personally liable for the debt incurred. If Ross, via the liquidator, can prove that Scott undertook a financial obligation without the necessary ability to pay then the Liquidator has a right of action against Scott personally. Once that is established (via the courts) he can lodge a caveat on Scott's house as he now has a financial interest in Scott's asset(s). The liquidator can pursue the debt via the courts and have options ranging from garnishee orders on bank accounts or wages, to petitioning for bankruptcy if matters are extreme enough. Ugly stuff that a young guy like Scott could well do without at his stage of his life and career.

Given the game Scott plays in, he'd be very wise to front up to Ross and come to an arrangement to get the debt paid and maintain a good reputation and goodwill. I dare say the racing community hold Ross in high enough esteem to see any wrongs righted, particularly in light of the squabble with the other Kiwi ex member of the team. His boss would be half decent if he stepped in and 'assisted' Scott to sort it out amicably and professionally. Running for cover under company insolvency is not a smart long term strategy in any game.

Proving the company was insolvent or likely to become insolvent at the time of the transaction is his best course of action but of course not easy to do but with a decent liquidator in place he will have access to the books and records of the company at the time and from there can determine his options.

Interesting times ahead.