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Bradfield Support Services Limited liquidation report

The first anniversary of the creditors’ voluntary liquidation of Bradfield Support Services Limited has recently passed.  The joint liquidators are therefore providing creditors with an update on the progress of the winding up.

The company was set up in 2008 and acquired the business and assets from the administrators of Dolphin Cleaning Services.  The company continued to offer commercial and industrial cleaning services to businesses in Hampshire and the surrounding counties.  Prior to facing financial difficulties the company had traded successfully generating healthy profits as a result of being awarded various contracts, including a Premier League football Club.  The company subsequently faced cash flow difficulties as a result of the loss of several contracts, including the football club work which was terminated without notice.  HMRC arrears accrued and a winding up petition was threatened so the director sought business recovery advice from Portland.  A company voluntary arrangement was considered but felt to be inappropriate due to the director loan position.  Steps were subsequently taken to wind up the company and the liquidation commenced on 21st November 2014.

During the liquidation we have secured a sale of the business and assets on deferred payment terms.  It was anticipated that all amounts would have been paid by the first anniversary, however due to cash flow difficulties suffered by the purchaser a number of instalments were missed.  A new payment arrangement has recently been agreed and the purchaser has met the first two payments.

In addition we have recovered funds in respect of the company’s debtors which were previously subject to an invoice discounting arrangement; we have recovered a refund from a finance company in respect of an incorrectly charged monthly finance payment and liaised with the company’s former landlord to recover the rent deposit held.

To date there have been no realisations in respect of the director’s overdrawn loan account. The director has provided evidence which shows he does not have the means to settle the debt in full or make any meaningful contribution. We are continuing to liaise with the director in this regard and as we are aware that there is potentially equity in his matrimonial home, which is subject to the terms of an on-going divorce settlement.

We  anticipate being in a position to pay a dividend to the unsecured creditors in due course.  However the timing and quantum are currently uncertain and are dependent upon the recoveries from the overdrawn director’s loan account.

For further details relating to the liquidation, please see the joint liquidators’ annual progress report which can be accessed here.

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