Entrepreneur Loggenberg banned for 11 years

AWARD-winning entrepreneur Saul Loggenberg, the former boss of Bowdon Investment Group, has agreed to an 11-year ban on being a company director, the Insolvency Service said.

The 37-year-old, who lived in Hale, Greater Manchester before relocating to Cape Town, South Africa, was found to have paid himself and not his creditors while he was a director of Yorkshire firm Mocor.

He gave an undertaking to the Department for Business, which prevents him from acting as a company director from August 9 this year until 2024.

Mr Loggenberg became the sole director of Mocor on September 2010 following his purchase of the company, including its cash on deposit of £326,862.

The company went into Creditors Voluntary Liquidation on June 30 2011 owing creditors nearly £280,000.

The sale was subject to a share-purchase agreement dated September 24 2010, which specified that these funds be used primarily for rent and business rates up to April 4 2011.

Mr Loggenberg had previously won prizes for entrepreneurship from both the UK Institute of Directors and the Shell RBS Entrepreneur of the Year awards in 2000.

In giving his undertaking, Mr Loggenberg did not dispute that: he applied for creditors voluntary liquidation minutes after being told his landlord was planning to apply for compulsory liquidation against him due to rent arrears.

He then immediately asked his solicitors to pay over £82,000 into his account and over £10,000 for his personal debts out of the company’s account.
 
The Insolvency Service said that despite frequent payment demands and legal proceedings being started, he failed to pay his landlord the rent arrears of £298,126 and business rates arrears of £119,077,while paying himself £121,241 on September 24 2010.

The payments he made to himself were for expenses and consultancy fees, but he was unable to produce documentary evidence in support of this claim.

Vicky Bagnall, director of investigation and enforcement services at the Insolvency Service, said: “The Insolvency Service will rigorously pursue company directors who seek to benefit themselves ahead of their creditors by extracting company funds when others are not being paid.

“Limited liability protection is only be available to those who comply with their obligations as company directors. If those obligations are ignored, that protection will be withdrawn.”