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Southsea Strand Motors Limited - Liquidation report

We have recently passed the 6th anniversary of our appointment as joint liquidators of the company and therefore we are providing creditors with an update on the progress of the winding up. 

As reported previously, during the liquidation we were successful in achieving sales for the vehicles in excess of original expectations.  We were also successful in recovering more than three times the anticipated amount in respect of the company’s book debts.

At the date of liquidation there were overdrawn balances on the two directors’ loan accounts.  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 but due to the depressed housing market the property has remained unsold.   Although the property has been on the market for some time and the director has reduced the asking price to generate new interest, the director advises that he is still awaiting an offer to purchase the property and it is unclear how long it will take to sell.

Since the last anniversary a small amount of bank interest has been received on the balances held.

Realisations have been sufficient to allow us to discharge the claims of the preferential creditors, being amounts due to the employees for arrears of wages and holiday pay.  We have also made a payment to the Barclays Bank under its security in respect of a debenture granted for lending in respect of 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

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