We have recently passed the second anniversary of the liquidation of The Churchillian Limited and we are therefore providing creditors with an update on the progress of the winding up. We were previously appointed as joint administrators of the company on 2nd May 2014.
A sale of the business was concluded as part of a pre-pack approach on 2nd May 2014 to an unconnected third party. During the administration we received the business sale funds, the rent deposit and cash at bank together with various refunds. In addition we recovered loans provided to the company’s shareholders. The secured creditors were discharged in full during the administration. The balance of the funds held in the administration were subsequently transferred to the liquidation.
As reported previously the only asset which we have continued to pursue during the liquidation is the director’s overdrawn loan account. In April 2016, we instructed solicitors to pursue the debt as we were unsuccessful in our attempts to get the director to provide his proposals for repayment. The director has managed to find a lender who has agreed to provide the funds to repay the debt but the lender has requested a significant amount of information from the director who has been slow in providing it. It is difficult to estimate when the funds will be released from the lender but it is hoped that it will be in the next 2-3 months.
It is anticipated that there will be insufficient funds to enable a dividend to be paid to unsecured creditors.
Creditors are able to access further information in relation to the winding up in the liquidators’ annual progress report here