EBP Realisations Limited (formerly Expamet Building Products Limited) in Administration

Transcription

1 EBP Realisations Limited (formerly Expamet Building Products Limited) in Administration High Court of Justice, Chancery Division, Manchester District Registry Case No of 2012 Joint Administrators progress report for the period from 26 September 2013 to 25 March April 2014 PricewaterhouseCoopers LLP Benson House 33 Wellington Street Leeds LS1 4JP Telephone +44 (0) Facsimile +44 (0) When telephoning please ask for Ruth Turner

2 Contents Section Pages 1 Joint Administrators progress report Statutory and other information 6 3 Receipts and payments account 7 4 Expenses incurred in the period 8 5 Claim form 9 10 Abbreviation used in this report: IR86 Insolvency Rules 1986 the Company EBP Realisations Limited the Administrators Robert James Hebenton and Ian David Green the Administration the administration of the Company commencing on 23 May 2012 Proposals The Administrators statement of proposals dated 13 July 2012 the Lender GE Commercial Finance Limited IA86 The Insolvency Act 1986 HMRC H M Revenue and Customs Prescribed Part Part of the net floating charge assets which are to be set aside for the unsecured creditors under S176AIA86 being: 50% of net property up to 10,000 20% of net property in excess of 10,000 Subject to a maximum of 600,000 1

3 1. Joint Administrators progress report Introduction In accordance with Rule 2.47 IR86, we write to provide creditors with details of the progress of the Administration of the Company in the six months since our previous report dated 14 October This report has also been produced in accordance with Rule IR86 to support an application to court to extend the period of the Administration by the period of one year We are required to provide certain statutory information pursuant to Rule 2.47(1)(a) to (d) IR86, which is included in Section 2. At this time, we envisage that there will be insufficient realisations to enable a distribution to the unsecured creditors of the Company, other than via the Prescribed Part. These matters are discussed below. Sale of business and assets As stated in previous reports, immediately following our appointment on 23 May 2012, substantially all of the Company s business and assets were sold to Birtley Building Products Limited on a going concern basis. Sale proceeds of 500,000 consisted of the following: - Plant and machinery 350,000 - Stock and Returns 124,995 - Goodwill 25,000 - Intellectual property 1 - Customer list 1 - Information technology 1 - Websites 1 - Books and records 1 A quick sale of the business and assets was necessary due to an inability to fund on-going trading and uncertainty surrounding the continuation of contracts with key customers. Our letter to creditors dated 28 May 2012 notified creditors of the sale and provided the information required by Statement of Insolvency Practice #16. This notice is also still available to view at Realisation of other assets The Company s debtor ledger was not included in the above sale as this was subject to an invoice discounting facility with the Lender. As at the date of our appointment, the book debt ledgers totalled 4,479,899 and 287,054. Under the sales contract these debts were collected by Birtley Building Products Limited on behalf of the Lender. The sums of 2,564,863 and 241,025 have been collected in respect of the book debts. As a result of compensation claims made by large retailers under the terms of their contracts and bad debts, no further realisations are envisaged from this source. As advised in our previous reports, following a review of unpaid pre appointment invoices we become aware of an additional asset of the Company in the form of a large VAT bad debt relief claim. In order to submit the bad debt relief claim, the remaining book debt ledger was reassigned to the Company and a claim in the region of 219,000 was submitted to HMRC. Since our last report we have continued to liaise with HMRC regarding the claim and have recently been informed that the majority of our claim has been agreed, and HMRC will soon be remitting payment of 193,932. 2

4 1. Joint Administrators progress report We are currently reviewing correspondence received from HMRC regarding the disallowed element of the claim to determine if this should be appealed. The proceeds from the above claim will be floating charge realisations. On receipt of these monies we will proceed to agreeing the claims of unsecured creditors with a view to paying a small distribution to the unsecured creditors of the Company via the Prescribed Part. The dividend is currently estimated to be less than 1p in the pound. Receipts and payments account An account of the receipts and payments in the Administration for the period to 25 March 2014 is set out in Section 3. Expenses statement A statement of the expenses incurred by the Administrators in the period 26 September 2013 to 25 March 2014 is included at Section 4. The statement excludes any potential tax liabilities that may be payable as an expense of the Administration in due course because amounts due will depend on the position at the end of the tax accounting period. Administrators remuneration In the circumstances of this case, the basis of our remuneration falls to be determined by the secured and preferential creditors of the Company. At the time of our last report we advised that the basis of our remuneration had been agreed with the Lender, as secured creditor on the following basis: a fixed fee 60,ooo for all statutory work other than dealing with the Prescribed Part; plus a fixed fee of 27,000 for work dealing with the Prescribed Part; plus 12.5% of bad debt relief recoveries; plus a percentage of the Company s book debt realisations as set out below: - 0% of first 0-2,000,000 of book debt realisations, plus; - 2% of any debtor realisations between 2,000,000 and 3,000,000, plus; - 4% of any debtor realisations between 3,000,000 and 3,500,000. Since our last report we have also received the approval of the voting preferential creditors to this revised basis. Our remuneration on the above basis results in a fee accrued for the period 23 May 2012 to 25 March 2014 of 75,157, as detailed below. No additional fee has specifically accrued in the period covered by this report. Basis Fixed fee for all statutory work (other than dealing with the Prescribed Part) 60,000 Percentage of the amount realised from the Company s book debts 15,157 Estimated total fee 75,157 3

5 1. Joint Administrators progress report Summary of legal and other professional firms instructed in the Administration Service provided Name of firm / Reason selected Basis of fees organisation Legal advice DLA Piper UK LLP Expertise Time costs Chattel agents and valuers Eddisons Expertise Time costs Creditors rights A statement of creditors rights in relation to the Administrators remuneration and expenses can be found at A copy may also be obtained free of charge by telephoning, Ruth Turner, on Outcome for creditors Secured Creditor The Lender holds fixed and floating charges over the Company s assets dated 9 July 2007 and 8 October 2010 and was owed approximately 3.4million at the date of our appointment. To date, the Lender has received distributions from the Administration of 283,043 in relation to its fixed charge, 41,437 in relation to its floating charge and 2,564,863 and 241,025 in respect of the book debts collected by Birtley Building Products Limited. It is currently envisaged that the Lender will receive a further distribution from the floating charge realisations. However, it is expected that the Lender will suffer an overall shortfall in relation to its lending. Preferential Creditors Following the sale of the Company s business and assets shortly after our appointment, the majority of the Company s employees transferred to the Purchaser. Four employees based in Eire did not transfer and were made redundant shortly after our appointment. Preferential claims are arrears of wages up to 800 and holiday pay. Preferential creditors totalled 4,115 and a distribution of 100p in the pound was paid on 11 December Unsecured Creditors We anticipate that there will be no dividend to the non-preferential unsecured creditors of the Company other than by virtue of the Prescribed Part. As detailed above we have submitted a bad debt relief claim in respect of unpaid pre appointment sales invoices. The claim has now been agreed by HMRC, and we are advised that we will receive funds shortly. This means we will have sufficient funds to enable a small Prescribed Part distribution to the unsecured creditors. Based on current estimates we anticipate that the distribution will be less than 1 p in the pound. On 12 April 2013 the Court granted permission for the Administrators to make a distribution to unsecured creditors. If you have not already submitted your claim, please do so using the form enclosed at Section 5 of this report. 4

6 1. Joint Administrators progress report Extension of the Administration The Administration of the Company was due to come to an automatic end on 22 May The court granted a 12 month extension of the Administration on 12 April We are currently seeking an extension from Court for a further period of 12 months to receive payment from HMRC in relation to the agreed part of the bad debt relief claim, determine if any further amount will be forthcoming, review and agree the unsecured claims and make a first and final distribution to unsecured creditors. Ending the Administration We currently envisage that once the objective of the Administration has been achieved we will file a notice under Paragraph 84(1) Schedule B1 IA86 with the Registrar of Companies, following registration of which the Company will be dissolved three months later. Next report We anticipate that we will circulate our next report to creditors at the earlier of the conclusion of the Administration or in approximately six months. Should you have any queries please do not hesitate to contact my colleague, Ruth Turner, on Yours faithfully For and on behalf of the Company Robert Hebenton Joint administrator Robert James Hebenton and Ian David Green have been appointed as joint administrators of the Company to manage its affairs, business and property as its agents and act without personal liability. Both are licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales. The joint administrators are Data Controllers of personal data as defined by the Data Protection Act PricewaterhouseCoopers LLP will act as Data Processor on their instructions. Personal data will be kept secure and processed only for matters relating to the Administration. 5

7 2. Statutory and other information Court details for the Administration: Full name: Trading name: Registered number: Registered address: Company directors: Company secretary: Shareholdings held by the directors and secretary: Date of the Administration appointment: Administrators names and addresses: Details of any extension(s) to the initial period of appointment Changes in office holder: Appointor s / applicant s name and address: Objective being pursued by the Administrators: Division of the Administrators responsibilities: Proposed end of the Administration: Estimated dividend for unsecured creditors: Estimated values of the prescribed part and the company s net property: High Court of Justice, Chancery Division, Manchester District Registry 2661 of 2012 EBP Realisations Limited Expamet Building Products Limited Benson House, 33 Wellington Street, Leeds, LS1 4JP Nigel Mark Dickinson, Joseph Knowles and Ian Zant Boer. Brian Emerson None 23 May 2012 Robert James Hebenton of PricewaterhouseCoopers LLP, 101 Barbirolli Square, Lower Mosley Street, Manchester, M2 3PW and Ian David Green of PricewaterhouseCoopers LLP, Benson House,33 Wellington Street, Leeds, LS1 4JP Court order extended administration to 22 May 2014 on 12 April 2013 Not applicable GE Commercial Finance Limited of Enterprise House, Bancroft Road, Reigate, Surrey, RH2 7RT Objective (b) is being pursued as it was not reasonably practical to rescue the Company as a going concern; should objective (b) not be realisable we will move to pursue objective (c) In relation to paragraph 100(2) Sch.B1 IA86, during the period for which the Administration is in force, any act required or authorised under any enactment to be done by an administrator may be done by either or both administrators acting jointly or alone. Dissolution Less that 1p in the Prescribed part: 47,000-52,000 Net property: 222, ,000 Whether and why the Administrators intend to apply to court under Section 176A(5) IA86: The European Regulation on Insolvency Proceedings (Council Regulation(EC) No. 1346/2000 of 29 May 2000): None The European Regulation on Insolvency Proceedings applies to this Administration and the proceedings are the main proceedings. 6

8 3. Receipts and payments account EBP Realisations Lim ited (form erly Expam et Building Products Lim ited) - In Adm inistration Receipts and Payments account for the period 23 May 2012 to 25 March 2014 Fixed Charge Receipts Directors statem ent of affiars 23 May 2012 to 25 Septem ber Septem ber 2013 to 25 March 2014 T otal Monies received directly by secured lender ( ) ( ) ( ) ( ) Gazprom - deposit* Note 1 138, Plant & machinery (charged to Lombard) 56, Goodwill 25, , Plant & machinery (charged to Aldermore Asset Finance) 60, Plant & machinery (charged to Close Business Finance) 18, Intellectual Property Rights Interest received gross Lombard cash backing* Note 1 7 1, Other Interest Received Plant & machinery 440, , , Sales ledger - Ireland *Note , , Sales ledger - UK *Note 2 4,000, ,564, ,960, , , Fixed Charge Pay m ents Bank charges (32.67 ) (0.54) (33.21) Legal Fees (10,259.52) - (10,259.52) Legal Fees Pre Appointment (49, ) - (49, ) Office Holders fees VAT receivable (12,355.54) - (12,355.54) (7 2,324.34) (0.54) (7 2,324.88) Net Fixed Charge Receipts And Pay m ents 285, , Distribution to fixed chargeholder (283,043.30) - (283,043.30) Fixed charge balance at Bank 2, , Floating Charge Receipts Bad debt relief Balance at Bank 4, , Other plant & machinery 100, Cash in hand Fixtures & fittings 10, Intangible assets Interest received gross Office equipment 30, Other Interest Received Plant & machinery 111,150 17, , Prepayments 20, Refunds 7, , Rent 8, , Stock (gross) 900, , , Website ,17 1, , , Floating Charge Pay m ents Agents Fees Pre Appointment (3,598.40) - (3,598.40) Bank charges (112.81) (15.16) ( ) Cleaning and site clearance costs (61.96) - (61.96) Corporation tax (51.60) (190.56) (242.16) Insurance (265.00) - (265.00) Legal Fees (6,154.44) - (6,154.44) Legal Fees Pre Appointment (16,558.86) - (16,558.86) Net wages (5, ) - (5, ) Office Holders fees Office Holders expenses PAYE & PRSI (Irish Revenue) (2,344.31) - (2,344.31) Preferential Creditors (4,115.43) - (4,115.43) Rent (7,614.92) - (7,614.92) Statutory advertising (7 3.62) - (7 3.62) Storage costs ( ) - ( ) Subcontractors (685.50) - (685.50) VAT Irrecoverable in respect of Rent ( ) - ( ) VAT receivable (5, ) - (5, ) (53,414.26) ( ) (53,619.98) Net Floating Charge Receipts And Pay m ents 111, ( ) 111, Distribution to floating chargeholder (41,436.53) - (41,436.53) Floating charge balance at Bank 69, ( ) 69, Represented by : Net Fixed Charge Receipts and Payments 2, , Net Floating Charge Receipts and Payments 69, ( ) 69, Balance at Bank 7 2, ( ) 7 2, T otal funds held 7 2, ( ) 7 2, Note 1 Although estimated to realise figures were given in the statement of affairs, the directors also included details of debts due to Lombard and Gazprom of greater value, reducing their net value to 0. Note 2 These are factured to G E Commercial Finance Limited and have been received directly by GE Commercial Finance Limited. No surplus is anticipated for the administration. 7

9 4. Statement of expenses incurred EBP Realisations Lim ited (form erly Expam et Building Products Lim ited) - In Adm inistration Expenses Statem ent for the period 26 Septem ber 2013 to 25 March 2014 Category Unpaid expenses as at 26 Septem ber 2013 Incurred in this period Paid in this period Unpaid expenses as at 25 March 2014 Administrators fees (Note 1) 7 5, , Administrators expenses (Note 2) * , Bank charges T otal 7 5, , Note 1 -Please see page three of the report for further details Note 2 - Administrators' disbursement charging policy Category 1 disbursements All Category 1 disbursements will be charged at cost. To date disbursements of 2, have been incurred. Category 2 disbursements Costs to date ( ) Photocopy ing At 4 pence per sheet copied, only charged for circulars to creditors and other bulk copying Mileage At a maximum of 67 pence per mile (up to 2,000cc) or 80 pence per mile (over 2,000cc). 1, Total 1,

10 5. Statement of claim form 8

11

12 Rule 2.47 Form 2.24B The Insolvency Act 1986 Administrator s progress report 2.24B Name of Company EBP Realisations Limited Company Number In the High Court of Justice, Chancery Division, Manchester District Registry Court case number 2661 of 2012 (full name of court) (a) Insert full name(s) and address(es) of administrator(s) We (a)robert James Hebenton and Ian David Green of PricewaterhouseCoopers LLP, 101 Barbirolli Square, Lower Mosley Street, Manchester, M2 3PW and PricewaterhouseCoopers LLP, Benson House, 33 Wellington Street, Leeds, LS1 4JP administrators of the above company attach a progress report for the period from to (b) 26 September 2013 (b) 25 March 2014 (b) Insert dates Signed Joint Administrator Dated 15/4/2014