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 fifth anniversary.
Prior to the commencement of the liquidation, the company was based in Portsmouth, Hampshire and had operated as providers of minibuses for commercial and private hire.
Due to significant liabilities due to HMRC accrued by the company, a winding up petition had been issued. A Company Voluntary Arrangement (CVA) had been proposed but was rejected by HM Revenue & Customs. The director approached Portland for insolvency advice and immediate steps were taken to place the company in to creditors voluntary liquidation.
The company’s main assets at the date of liquidation were its fleet of motor vehicles, book debt and overdrawn directors’ loan accounts.
Several motor vehicles were subject to finance agreements and we instructed a chattel agents to assist with the disposal of the motor vehicles. We were successful in achieving sales for the vehicles in excess of original expectations. It was initially anticipated that a small amount of the book debts would be recoverable, we successfully recovered over three times more than was anticipated.
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. It was anticipated that the loan would be repaid from the sale proceeds of a property in Cyprus. Due to the depressed housing market in Cyprus it is currently unclear how long the property will take to sell. Although the property has been on the market for some time, the director advises that he is still awaiting an offer to purchase the property.
A small amount of interest has been received into the liquidation since the last anniversary.
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