Eastlake Developments Limited in Administration. High Court of Justice, Chancery Division, Birmingham District Registry Case No.

Transcription

1 p Eastlake Developments Limited in Administration High Court of Justice, Chancery Division, Birmingham District Registry Case No.8226 of 2015 Joint Administrators second progress report for the period from 12 December 2015 to 1 June June 2016 PrweivaterIu)use( oopers LLP ii Iizrtjt u Str

2 in Section Pages 1 Joint Administrators second progress report for the period from December 2015 to 1 June Statutory and other information 6 3 Receipts and payments account 7 4 Analysis of the Administrators remuneration and disbursements 8 13 for the period 5 Expenses incurred in the period 14 6 Form 2.24B The following abbreviations are used in this report: 1R86 Insolvency Rules 1986 the Administrators Roger Hale and Robert Lewis the Companv Eastlake Developments Limited the Group Six associated companies including Eastlake Developments Limited LPH Lewis Property Holdings Limited Administration LIE Lansdown Industrial Estate in Cheltenham PBS Principality Building Society

3 1. Joint Administrators second progress report for the period from 12 December 2015 to 1 June 2016 Introduction We write to provide an update on the progress of the administration, covering the period from 12 December 2015 to i June This report should be read in conjunction with our previous report covering the period from appointment on 12 June 2015 to ii December 2015, which is still available at: The administration is due to come to an automatic end on 11 June however the outstanding matters in the administration will not be concluded by that time. Therefore this report has been prepared to support a request for a twelve month extension to the period of the administration to ii June In accordance with insolvency legislation and in the circumstances of this case, such a request must be made to the secured lender, PBS. Assuming the request for an extension is approved, a copy of this report will subsequently be circulated to all creditors, together with a notice of the extension. We are required to provide certain statutory information pursuant to Rule 2.47(1)(a) to (d) 1R86, which is included in Section 2. Asset Realisations in this period Bolt Street, Newport The Company s interest in Bolt Street consisted of 11 residential houses which were let and managed by Roberts & Co prior to our appointment. The sales process was managed by Roberts & Co and we are pleased to report that Bolt Street was sold on 16 March 2016 for consideration of 620,000 to PGS Developments Limited. Total rental income in relation to Bolt Street prior to completion was 45,289. Regent Court! Randstad Court We have continued to use the existing managing agent, Jessop & Co. to manage the property and administer the service charge. The sales process is ongoing and an offer has been accepted and is subject to contract. We are continuing to collect rent due from sub-letting the car park spaces to tenants. Total rental income in this period to t June 2016 in relation to Regent Court is 130,776. Parcels of land at ( arfin The (nmnparo houht a situ f r des uiprn ut prior to oui appolntnlent Ehese i aruels relate to the u\ues land that n mamud I llown this des loprnunt. \.ale f thesu parunis 1 land tiss I ecentlv comploted hr t ta] nsideratinn f o Receipts and I)aYflents account An ae unt at tb reipb and p m nt n he ion]inist13tifl hr tb ten ii from a Ln ucmb r to 1 Jun0 anip is set ut in Secti n. Expenses statement statement f the expt nses men nc I L t id rnnictrators in the period 12 i)e ember 2 15 t I U 2011 iluliepsi at Sec lion Ii Oil n

4 i Joint Administrators second progress report for the period from 12 December 2015 to 1 June 2016 Administrators remuneration The Administrators remuneration has been approved on a time costs basis by PBS as the Company s secured creditor. The time costs incurred in the period covered by this report are 198,496. This includes time in relation to both fixed and floating charge matters, This amount does not necessarily reflect the amount that will be drawn as remuneration by the Administrators for this period in due course. In accordance with the requirements of Statement of Insolvency Practice 9, a full analysis of the &dministrators time costs and Category 2 disbursements for the period 12 December 2015 to 31 May 2016 is provided in Section 4. Details of work, which would normally be undertaken by the Administrators own staff, that has been subcontracted in the period covered by this report are provided in Section 4. To 1 June 2016, the Administrators have drawn post-appointment remuneration of 100,000. Creditors rights Creditors have the right to ask for more information within 21 days of this report as set out in Rule 2.48A of the Insolvency Rules Any request must be in writing. Creditors can also challenge fees and expenses within eight weeks of this report as set out in Rule This information can also be found in the guide to fees at: siaw,icaew,com/cn/technicai/insoh ency/creditors-juides Pre-administration costs The unpaid pre-administration costs which were incurred prior to the appointment of the Administrators, but with a view to the Company entering administration were approved for payment on 3 No ember 2015 by PBS as the secured lender. These costs totalled 42,538 and have now been paid. Outcome for creditors Secured creditor PBS s lending to the Company as at the date of administration was in the region of 10.7 million and is secured by a debenture dated 30 June This security gies PBS fixed and floating charges over all the Company s assets. lo ate 2 6i i ii as be distnbt fed t PPS hol c do I iink F ai s tior iad i ii sffc tru PB r 11 Preferential reditors (err ploees) t [nse ured r ditors F d I ict prop rts. Net propt rtx is floating chargr realisations aft ito ts, and after pa ing w setting aside em ugh to pay preferential creditors in full. But it only has to be made available where the fioatin harge was created on or after i September 2003

5 i Joint Administrators second progress report for the period from 12 December 2015 to t June 2016 There is unlikely to be a dividend for the unsecured creditors under the prescribed part or otherwise as we currently estimate that all floating charge realisations will be required to meet floating charge costs. However we cannot confirm the value of net property, at this stage as this is dependent on future realisations, Further details will be provided in due course. Extens ion of the administration We consider it necessar for the period of the administration to be extended by twelve months, The extension is necessary to complete the asset realisations of the Company, namely Regent Court along with finalising VAT and tax matters, and distributing funds to creditors. Ending the administration Following disposal of all of the assets of the Company, the Administrators envisage that the administration will be brought to an end by filing notice under Paragraph 84(1) Schedule Bi of the Insolvency Act 1986 with the Registrar of Companies, following which the Company will be dissolved three months later. Next report The Administrators anticipate that they will circulate their next report to creditors at the earlier of the conclusion of the administration or in approximately six months. Yours faithfully For and on behalf of the Company Roger Hale Joint dministrator Roqer hale and Robert I ews have been appointed asjoint administrators of Lastlake Developments I imited to manage its affairs, business and propertu as its aqents. Both are licensed in the United Rinqdom to act as insolvency practitioners by the In titute if(harter daecountrznts in Ingland and Woks, c C ntr Ic [C so II o s Ifi cdlyt[ I

6 2 Statutory and other information Court details for the administration: High Court of Justice, Chancery Division, Birmingham District Registry Case 8226 of 2015 Full name: Eastlake Developments Limited Trading name: Eastlake Developments Limited Registered number: Registered address: Benson House, 33 Wellington Street. Leeds, LSi 4JP Company directors: Melanie Hall, Bryan Lewis, Marlene Lewis, Guy Lewis Company secretary: Melanie Hall Shareholdings held by the directors and Melanie Hall (23%), Bryan Lewis (27%), Marlene secretary: Lewis (27%), Guy Lewis (23%) Date of the administration 12 June 2015 appointment: Administrators names and addresses: Details of any extension(s) to the initial Mr Roger Hale and Mr Robert Lewis, both of PricewaterhouseCoopers LLP, 1 Kingsway, Cardiff, CFio 3PW Not applicable Changes in office holder: Not applicable Appointor s / applicant s name and Eastlake Developments Limited, The Lodge, Parc address: Objective being pursued by the Administrators: Division of the Administrators responsibilities: Macs Ffynon, Itton, Chepstow, NPi6 6BD (C) realising the Company s assets to pay a dividend to one or more secured or preferential creditors In relation to paragraph 100(2) Sch.Bi 1A86, all of the functions powers and duties of the Administrators may be exercised by all or any of the Administrators, Projnd of the administration: Estimated dividend for unsecured creditors: Estimated values of the prescribed part and the compans netppyl Whether and win the Administrators intend to apply to court under Section 176(5) 1486 I I ropca i Rcgulati or isolve i y Proccedini,s ur ii Rgulatlon([() No 1346J Max 2ooO) Dissolution Nil Not appik able

7 Maxet 3 Receipts and payments account Eastlake Developments Limited - in administration Administrators abstract of receipts and payments 12 June 2015 to ii December December 2015 to i June June 2015 to i June 2016 FIXED CHARGE REAUSATIONS/RECEIPTS Rental income - House Sale of Bolt Street Sale of Land at Carfin Sale of Lansdown Industrial Estate sale of Maxet House. Luton 27, , , ,362, ,00 20, , , , , , (10 3,002, COST OF REALISATION/PAYMENTS Agents fees Insurance Lease/hire payments Legal fees & disbursements Office holders post-appointment fees Rent - head office Repairs and maintenance (26,986,50) (14,270,00) (41,256.50) (13,329,47) (3,650.21) (16,979.68) ( ) (1,854.00) (14,182.83) (14,182.83) (50,000.00) (so,ooo.oo) (3,633.33) (3,633.33) (1,318.00) (2,008.00) (3,326.00) (i 11,304.13) (19,928.21) (131,232,34) Distribution to chargeholder PBS (1.810,000.00) (809,000.00) (2,619,000,00) NET FIXED ChARGE REALISATIONS FLOATING CHARGE REALISATIONS/RECEIPTS Balance at hank Bank interest Refunds Rental income - Bolt Street Rental income Regent C urt rhird Party f unds Working capital funding COST OF REALISATION/PAYMENTS Bank charges Emplos cc related c st Ic I 441, (188,928.21) 252, , , , , , ,289,09 116, , , , , , (75.00) (846.00) j 8 (36.60) (iii6o) ( C t rkir k 1 d aa ital to din a oc ) 1FI 1I s (ii.rgi RE IS IO s

8 4 Analysis of the Administrators remuneration and disbursements for the period Office holders charging and disbursement policy Time charged to the administration is by reference to the time properly given by the Administrators and their staff in attending to matters arising. It is the Administrators policy to delegate tasks in the administration to appropriate members of staff considering their level of experience and any requisite specialist knowledge, supervised accordingly, so as to maximise the cost effectiveness of the work performed. Matters of particular complexity or significance requiring more exceptional responsibility are dealt with by senior staff or the Administrators themselves. All staff who work on these assignments (including cashiers, support and secretarial staff) charge time directly to the assignment and are included within any analysis of time charged. Each grade of staff is allocated an hourly charge out rate which is reviewed from time to time. Work undertaken by cashiers, support and secretarial staff is charged for separately and is not included in the hourly rates charged by partners or other members of staff. Time is charged by reference to actual work carried out on the assignments in 6 minute units. The minimum time chargeable is 3 minutes (i.e. 0.5 units). Hourly rates Specialist departments within the Administrators firm also provided expert advice. These teams included Tax, VAT and Pensions, These rates do vary but the figures below provide an indication of the maximum rate per hour. Set out below are the relevant maximum charge-out rates (before VAT) per hour worked for the grades of the Administrators staff actually or likely to be involved on these assignments. Time is charged by reference to actual work carried out on the assignment. There has been no allocation of any general costs or overhead costs. In common with all professional firms, the scale rates used by Administrators may periodically rise (for example to cover annual inflationary cost increases) over the period of administrations. Administrator& Specialist staff departments /hour /hour Grade 1 July 2015 onwards t July 2015 onwards Partner 825 1,075 Director 490 1,085 Senior manager Manager 340 6oo Senior Associate (qualified) cr sso ate (unqualificd)

9 At At 4. Analysis of the Administrators remuneration and disbursements for the period Disbursements policy Our firm s expenses policy allows for all properly incurred expenses to be recharged to the case. Disbursements are uharged to the assignment as follows: Category Policy 1 All disbursements not falling under Category 2 are recharged at cost Photocopying - 5 pence per sheet copied, only charged for circulars to creditors and other bulk copying. Mileage - a maximum of 71 pence per mile (up to 2,000cc) or 93 pence per mile (over 2,000cc). Total for the period 12 December 2015 to 16 May Brought forward amount Total Summary of legal and other professional firms The Administrators have instructed the following professionals: Service provided Name of firm / organisation Reason selected Ian Farmer - Expertise Associates (1998) Ltd Basis of fees Amount paid in the period () Legal advice F,versheds LLP Fxpertise Time costs 13, Valuation of business and acsets Jessop & Co Expertise Time costs 0 Insurance Marsh Ltd Expertise Value of assets insured 3, Propet Management Property Management Roberts & Co Expertise Percentage 8.o25.oo Fixed 3, JI third parrt Pt ofessionals are required to uhmit time cosb analvsr and, or narrative in support o ipx oj( es rnder.l ifl order for the Administrators to runsidcrxv hether they ire reac nabh in the uireurnstan at the

10 in ( ( I 19.0() j I 1,52.28 l iine cost 6, , , , , , , ,475.0(1 41, [ 198,493.50j 49l, Aver age hourly rate , : I, na1ysii of the Administrators remuneration and disbursements for the period phil 1.,t1,i kt t t lopinent Limited in.dmim%tration l1d R o 3 t Hit Vt sts for the period from 12 1)eeemher 2015 to 31 May 20 t 6 l,*rtner Senior Senior - Di rector Manager Manager Associate Associate Secretarial Total hours I ( o.8o 3 5,5<) ) 1.1) ( ) ) i 0.2<) ( JL iou (3 1 1)ce , i 1 itn I imited administration 1 gress report tur 11.e period i Deeernber 2015 to 1 June

11 4. Analysis of the Administrators remuneration and disbursements for the period The following table explains the key elements of our work, as summarised in the table of time costs, by grade of staff and area of work What, if any, financial benefit the work Area of Work Work undertaken Why the work was provided to creditors necessary OR whether it was required by statute Strategy & planning Cost monitoring To ensure case Ensures orderly Holding update meetings progression and progression of case monitoring costs Secured creditors Liaising with secured creditor To keep the secured No financial benefit regarding sales creditor informed Reporting to secured creditor Trading Rental income coding and To ensure returns to Achieving the highest reporting creditors are realisations possible for the Responding to tenant queries maximised benefit of creditors Liaising with utility agents Liaising with managing agents Supplier queries in relation to ongoing supplies Assets Completing sales process for Bolt Street Assessing potential purchasers Legal advice in relation to realisations Liaising with agents regarding sale of properties aupdating insurance cover Marketing of Regent Court To ensure returns to creditors are maximised Achieving the highest realisations possible for the benefit of creditors Investigations Liaising with the Insolvency Service To comply with statutory obligations Required by statute Respondingtoereditor queries nleixed b\ past and telephone To kep reditars informed e No finanemal bei efit \en unting nd tre;istr Bmn&recanelations To mnanaitc tlh baak Enrures proper Ollit A ountmng tam receipts and management of funds a t\ iieflt tuta tr id n1niinmrtr:ii i 01 a ( lits I ( 1 Ingafport ding I I geas Appo nice & ranagcr 1cnws Responding to enquiries Filing documents it r panic Rouse witli tt 0 igati R uired t ut tag ( ii1pi iti 0

12 j 4. Analysis of the Administrators remuneration and disbursements for the period Tax & VAT Reviewing the Companvs tax To comply with Required by statute and position statutory obligations ensures the maximum Tax advice on sales and recover VAT recovery of input VAT, for which maxirnises Reviewing the Company s VAT the benefit of creditors.. realisations to position. creditors.. Preparing and reviewing postappointment VAT returns, including partial exemption calculations. Future work We still need to do the following work to achieve the purpose of administration. Whether or not the Area of Work Work we need to do, Estimated cost work will provide a financial benefit to creditors Reviewing progress or 2,000 Incidental to proper Strategy and administration strategy and management of the Planning amend as appropriate administration Secured creditors Liaising with secured creditor 2,000 Ensuring orderly return Reporting to secured creditor of funds to secured creditor Distributing to secured creditor Trading Rental income coding and 4,000 Achieving the highest reporting in relation to Regent realisations possible for the court benefit of creditors Liaising with utilit agents Liaising with managing agents Investigations Completing sales process for Regent Court Assets Liaising with the Inoi encv Servic Re.pondine to redito querirs oo rreived by p 1 and tlcrihone Achieving the highest realisations possible for the benefit of creditors Required by statute No iinancial benebt zi, 1n 1110 irid 1 Bank rrcnuihatinn, A-rnnnt1n for re -pt dnd jnero itit the administration auont. N. firaicial trnetit t9iii - Oil per 11:1flae Ilint jji. Statutory and (onhl)llaik( Reporting to oreditors Extension of administration Required b et itutc (enpl

13 4. Analysis of the Administrators remuneration and disbursements for the period Tax & VAT 10,000 Required by statute and Completing VAT and Tax ensures the maximum returns recovery of input VAT, for the benefit of creditors Closure 4,000 Required by statute, Obtaining clearances Closure procedures ensures all administration matters have been dealt with

14 5. Expenses incurred in the period The following table provides details of our expenses. Expenses are amounts properly payable by us as administrators from the estate and includes our fees, but excludes distributions to creditors. The table also excludes any potential tax liabilities that we may need to pay as an administration expense because amounts becoming due will depend on the position at the end of the tax accounting period. The table should be read in conjunction with the receipts and payments account which shows expenses actually paid during the period and the total paid to date. Expenses Brought forward Incurred in from preceding the period Estimated Anticipated period under review Cumulative future total Administrators 280, , , , time costs Administrators disbursements Legal fees and 17, , , , , disbursements Office costs, stationary and postage Rent 12, , , , Telephones, fax etc 1,991,35 1, , Storage costs , Agents fees 26, , , ,00 43, Insurance 13, , , , , Repairs and 2, , maintenance 338, )( )8 88,

15 Rule 2.47 Form 2,24B The Insolvency Act 1986 Administrator s progress report 2.24B Name of Company Eastlake Developments Limited Company Number In the High Court of Justice, Chancery Division, Birmingham District Registiy Court case number 8226 of 2015 (a) Insert full name(s) and addres(es) of administrator(s) We (a) Roger Hale and Robert Lewis, both of PricewaterhouseCoopers LLP, 1 Kingsway, Cardiff, CFio 3PW Joint administrators of the above company attach a progress report for the period from to (h) Insert dates (b) 12 December 2015 (b) 1 June 2016 Signed Joint Administrator