We have now passed the third anniversary of this compulsory liquidation which commenced on 29th March 2012. The liquidators are therefore providing their annual progress report to creditors to update them on the winding up.
The company had traded as a lithographic printing company based in Reading but had experienced financial difficulties leading to the eventual appointment of administrators in June 2011. However, the creditors subsequently rejected the administrators proposals and the administrators were therefore required to petition for the company’s winding’s up. The creditors sought the appointment of a liquidator in order for a detailed investigation to be carried out, specifically into the substantial change in the company’s financial position during the period immediately prior to administration.
Since our appointment as liquidators we have undertaken a substantial investigation. In addition we have realised funds in respect of the sale of machinery subject to finance, collected a number of outstanding debts with the assistance of Debtcol following the reassignment of the ledger from the invoice discounter and received a VAT adjustment refund from a former asset financier, the petitioners deposit, unclaimed preferential dividends from the administration and interest of the balances held.
In relation to the investigative work, in the previous twelve months there have been some significant developments with regard to the outcome of the investigation. With assistance from solicitors we have identified fraudulent activity, in the period prior to administration, carried out by an individual whom had been appointed as a director and became a shareholder two months prior to the administrators’ appointment. The activity was the subject of criminal proceedings and the individual has been convicted of 12 counts of fraud, four of which relate specifically to the company in liquidation.
In addition to a substantial amount of misapplied funds, which were used predominantly to acquire a property in his own name, the individual is liable in respect of the unpaid share capital that he acquired. We have been successful in securing a court order for the total amount claimed plus interest and costs. We have subsequently applied for a possession order in respect of the property and this is due to be heard imminently. If we are successful we will take steps to sell the property, discharge the outstanding mortgage and selling costs with the residual funds becoming available for the liquidation.
There are still other areas of concern, but we have focused on the realisation detailed above before taking any further action due to limited funds. It is not appropriate at this time to disclose the nature of these other concerns to avoid jeopardising any potential future recoveries.
The timing and quantum of any dividend to creditors will be wholly dependent on the recoveries from our on-going investigations.
For full details of the liquidation, please read the liquidators’ progress report here