We have recently passed the sixth anniversary of this creditors voluntary liquidation. The joint liquidators, James Tickell and Carl Faulds of Fareham based insolvency practitioners Portland, are now providing an update on the winding up.
APS Mortgages (UK) Limited operated as a mortgage broker based in Swindon. After experiencing financial difficulties, the company was placed into administration on 25th October 2007. A company voluntary arrangement (“CVA”) was subsequently proposed and initially accepted by the unsecured creditors as an exit strategy from administration and to enable a return to the unsecured creditors. However, the CVA subsequently failed and as a result, steps were taken to place the company into liquidation.
The creditors’ voluntary liquidation commenced on 22nd April 2010. The joint administrators were appointed joint liquidators pursuant to paragraph 83 of Schedule B1 of the Insolvency Act 1986.
At the outset of the administration, one of the company’s main assets was a portfolio of loan agreements with customers that had received funding by way of top up loans from the company to help purchase/remortgage their homes. These loans were secured on the customer’s properties and are repayable by instalments, in line with the mortgages taken out at the time. APS Mortgages (UK) Limited specialised in mortgages for sub-prime customers; many of their customers subsequently encountered further financial difficulties and therefore it has been difficult to ascertain the likely level of eventual total recoveries from this source.
The collection of the loans was further affected by the economic downturn in 2008. During that time, the slowdown in the property market and the general reduction in property values meant that many of the properties were entering into negative equity and it was considered not economical to take action against the debtors, but rather persevere in asking the customers to keep to their monthly payments.
We have continued to collect the monthly repayments from some of the customers and during the previous twelve months, we have been successful in realising funds from three customers, representing either full or negotiated settlements following the sale of their properties.
At this juncture it is still too difficult to predict when we expect to be able to complete the winding up. Due to the complexity of the debtor collection and the uncertainty surrounding what possible future action will be required, we are unable to provide any guidance in this regard.
The liquidators’ full annual progress report can be accessed here