Preston Consultancy Agents Limited was placed into creditors’ voluntary liquidation on 15th May 2013. The joint liquidators are now issuing their third annual progress report to the members and creditors in order to provide an update on the winding up.
The company acted as an ‘umbrella’ company and was established for the sole purpose of employing temporary care staff, which it provided to a connected company, 1st For Care Limited. The company incurred significant HMRC arrears as it paid no PAYE or VAT during its 11 month period of trading. It transpired that funds had been misappropriated by its financial controller, which left the company unable to meet its liabilities. There was a substantial debt due from the connected company, however it subsequently suffered its own financial difficulties and entered into a company voluntary arrangement (“CVA”) with its creditors. Having sought insolvency advice from Portland the director decided to take steps for voluntary liquidation. Michael Fortune and Carl Faulds of Portland were appointed joint liquidators on 15th May 2013.
The only realisation in the last twelve months have been a further dividend from the CVA of 1st For Care Limited. The CVA is due to run for a further two years and we have continued to liaise with the supervisors of the arrangement with regard to future dividends.
We carried out an investigation into the affairs of the company, specifically with regard to the misappropriation of funds, but have concluded that no recoveries will be possible. We have submitted our report to the Insolvency Service in respect of the unfit conduct of the financial controller.
At this juncture it is unclear whether there will be sufficient funds to enable a return to the unsecured creditors as this is dependant on the success of the CVA of the connected company. However, should the CVA complete successfully in accordance with the original proposal, then there will be a dividend to the unsecured creditors in the liquidation.
For further details of this liquidation, please read the liquidators’ annual progress report which can be found here