Hi Everyone

Desperate for advice please:-

I purchased 50% interest in a friend's business (operational at the time for 20yrs+) some six years ago - no partnership agreement in place as we were friends for more than 20 yrs at the time and that didn't even cross my mind (stupid!). She is extremely well-known, popular in the industry and can sell ice to an eskimo… a real 'upstanding citizen' and with friends in all the right places.

It was a good business, but its going downhill fast - profits on paper mean nothing if you're not collecting payment for services.... her previous partner (her mom) had re-aged debt so the entire debtors book seemed nice & clean & current BUT... its NOT and she continuously extends credit to her clients without discussing it with me or getting proper credit facilities in place so we have zero recourse for non-payment. I have also since established that a LOT of the invoices billed to her clients (and payment not collected) are actually mistakes that she made at immense cost for which her clients cannot actually be held liable.

Our cashflow is a mess and I suspect that she has started trading in her own capacity on the side-line - hence no effort whatsoever with collecting overdue debt and extending more from the business where it suits her. Recently a client 'accidently' copied me on a proof of payment and included a company proforma invoice with bank detail edited to her own private bank account number and no record of the service being rendered through the business... she had some excuse and played it very innocently, but I don't a believe a word and the money is still not paid back to the business as she said she would.

I want out before she completely bankrupts the business and leaves me with the hot potato, whilst working on her own exit strategy. The business does not have the cashflow to 'buy' me out for the amount I purchased it for (on a bank loan I am still repaying) and meet its financial obligations, nor does she have the money in her personal capacity (I don't think) - even if she did have, can I really insist on it?

We are now in the silent treatment phase... I keep tackling the issues, but I get no response on anything written and verbally she just keeps promising that 'she is working on it' or tells me she can't talk right now. I have dragged her to a meeting with the auditor who 'repremanded' her and very little has come it.

I don't want to involve her clients as I really don't even know what is legitimate debt anymore. We wrote off a ridiculous amount of money last year to try and clear things out and get ahead, but the same pattern is repeating itself.

Basically I am happy for her to let her have her business back for the 50% its worth or at least what I paid for it. I just want to move on.