James Tickell and Carl Faulds of Portland Business & Financial Solutions were appointed joint liquidators of this company on 25th February 2011. The creditors’ voluntary liquidation has recently passed its fourth anniversary and the liquidators are therefore providing their annual progress report.
Prior to the commencement of the liquidation, the company had operated as providers of minibuses for commercial and private hire and were based in Portsmouth, Hampshire.
The company accrued substantial liabilities in respect of HMRC arrears in respect of which it had issued a winding up petition. A company voluntary arrangement had been proposed but this was subsequently rejected by HM Revenue & Customs. The director therefore contacted Portland for insolvency advice and immediate steps were taken to place the company in liquidation.
The company’s main assets at the date of liquidation were its fleet of motor vehicles, an outstanding sales ledger and balance on the directors’ overdrawn loan accounts.
We instructed a firm of local chattel agents to assist with the disposal of the motor vehicles, including several that were subject to finance agreements. We were successful in achieving sales of the vehicles for amounts totalling in excess of original expectations. We have also been successful in recovering amounts from the outstanding sales ledger. It was originally anticipated that only a small recovery would be possible. Total realisations in this regard amount to over three times the figure shown on the statement of affairs.
There were overdrawn balances on the two directors’ loan accounts at the date of our appointment. We received full settlement in respect of the loan account of the deceased estate of one director. To date no payments have been received from the second director. He has advised that the loan will be repaid from the sale proceeds of a property in Cyprus. The property has been on the market for sometime and the director is continuing to seek offers. Due to the depressed housing market in Cyprus it is currently unclear how long the property will take to sell.
During the liquidation we have discharged the claims of the preferential creditors, being amounts due to the employees for arrears of wages and holiday pay, in full and we have made a payment to the Barclays Bank under its security. The bank was granted a debenture in respect of its lending via an overdraft and business loan. We anticipate being in a position to pay a small prescribed part dividend to the unsecured creditors in due course.
The full report containing further details on the progress of the winding up can be accessed here