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Pinnacle Maintenance (UK) Limited report

We have recently passed the anniversary of our appointment as liquidators of Pinnacle Maintenance (UK) Limited and we are now providing an update on the winding up.

Michael Robert Fortune and Carl Derek Faulds of Portland’s Segensworth office were appointed joint liquidators of Pinnacle Maintenance (UK) Limited on 19th August 2016.  The company was established in mid 2008 by four directors with background in property development, in order to carry out property maintenance contracts.

The company initially traded successfully however in September 2012, the company was awarded a large design and build contract.  Initially it was expected that the contract would be delivered “turn-key” by summer 2013, however due to programme issues including weather delays the contract overran by 5 months.

As the contract was nearing completion the new build warranty providers declined to sign off the contract for insurance purposes.  It was cited that the piling contractor responsible for the design and build, failed to provide sufficient evidence that the piling was fit for purpose and therefore insurance could not be provided.  As a result of the inability to insure the building the customer refused to accept the contract as being completed. The dispute resulted in legal action between the insurance companies acting for the company and the piling contractor.

During the time that the legal proceedings were ongoing, the company was unable to carryout alternative projects as significant working capital was invested within the earlier contract.  The inability to trade during this period resulted in cashflow difficulties and the company found itself unable to pay creditors as they fell due.

The directors therefore sought independent advice and approached Portland in July 2015.  As a consequence of those discussions it was concluded that the business was no longer viable and the decision was made to cease trading.  Portland Business and Financial Solutions were formally instructed to assist in taking steps to place the company into voluntary liquidation.

At the date of our appointment the company was owed an outstanding retention in respect of the contract.  The retention was due to be released in April 2016 following an inspection of the work undertaken by the company and a deduction of the costs to restore any defects identified.  Prior to the liquidation the company had been made aware of a number defects on the project and therefore the estimated future recovery from the retention was uncertain.

Following our appointment we maintained regular contact the customer who undertook an inspection of the project on 19th April 2016.  They provided us with a schedule of the defects identified however the schedule was not costed.  There has been a delay in receiving a costed schedule however we have been advised that we will receive confirmation of the costs and the level of return on the retention imminently.  Once we have received this confirmation we consider a distribution to creditors of any surplus funds available after allowing for the costs of the liquidation and then take steps to bring the liquidation to a close.

Creditors can access a copy of the progress report here.

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