We are providing creditor with an update as to the progress during the liquidation since the appointment of Mike Fortune and Carl Faulds as joint liquidators of the company on 19th April 2016. We are asking creditors to agree to an increase in our fee estimate which was set prior to our appointment as liquidators and outlining the reasons for this request.
As reported previously the company operated as a wholesale supplier of cut flowers and floristry products to retail shops. In early 2016, during a review of the company’s finances, it was considered that the company could not continue in its current format. The director approached Portland for insolvency advice and concluded that an orderly winding down would provide the best return for creditors. Portland were instructed to assist with placing the company in to creditors’ voluntary liquidation.
During the liquidation we assisted the trade creditors who made claims under retention of title conditions to identify and remove their stock. We have been able to dispose of the company’s equipment, stock and motor vehicle. We have recovered the cash at bank and refunds in respect of vehicle tax, legal fees and insurance premium. We have sought recovery of the book debts due to the company, however, this has proved problematic as it became apparent that a significant number of the debts had been outstanding for a long time. We have spent a considerable amount of time in dealing with various issues including locating and providing copy invoices, dealing with disputes and debtors advising that payments had been made previously. There have also been a number of debtors who are individuals and have advised they do not have the means to settle the debt in full immediately. We have agreed deferred payment terms where appropriate in order to maximise realisations.
We have completed our investigations in to the affairs of the company in the period prior to the liquidation and have assisted the former employees to submit their claims to the Redundancy Payments Office (“RPO”) in order that they receive their guaranteed entitlements. We have also liaised with the RPO and the former employees to calculate the preferential and unsecured claims in the liquidation.
Creditors are able to find further information and the resolution in our progress report here