Contact details for queries Contact Address Direct line E-mail Fax Angela MeGeever PricewaterhouseCoopers LLP 0141 355 4040 angela.rncgeever@uk.pwc.com 0141 355 4005 141 Bothwell Street, Glasgow G2 7EQ 6 September 2016 Joint Administrators progress report for the period 6 february 2016 to 5 August 2016 Case No. P95 of 2012 Drumbow Contracts Limited (in Administration) Court of Session pwc
Contents Section Pages 1 Joint Administrators progress report for the period 6 februar 2016 to 5 August 2016 2-3 2 Statutory and other information 4-5 3 Receipts and paments account 6 Drumbow Contracts Limited (in Administration) 1
1. Joint Administrators progress report for the period 6 February 2016 to 5 August 2016 Introduction In accordance with Rule 2.38 of the Insolvency (Scotland) Rules 1986 ( 1SR86 ), the Joint Administrators ( the Administrators ) write to provide creditors with details of the progress of the Administration of Drumbow Contracts Limited ( the Company ) since the Administrators last progress report dated 14 March 2016. Extension of Administration The Court of Session extended the Administration for a period of 2 years to 5 February 2017, by Order dated 26 January 2015, to enable the Administrators time to collect the outstanding book debts from completed and ongoing contracts. Due to a number of the contracts having retention and defect liability periods that do not end until late 2016, a 24 month extension was requested to avoid excess costs being incurred by the Company in requesting a futher extension. Background information and initial actions taken by the Administrators Details of the background to, and the initial actions taken following the Administrators appointment are contained in the Administrators proposals dated 19 March 2012 and their subsequent progress reports. Realisation of assets As previously advised, the Joint Administrators appointed Acasta Consulting Limited ( Acasta ), to review the outstanding contract debts to ascertain whether any further realisations may be achievable. Following Acasta s review, it became apparent that due to the contractual rectification periods included within some of the debtors contracts, any significant future realisations will not arise until late 2016. The Administrators do not currently envisage full recovery of the remaining contract book debts given the high likelihood of disputes and counter-claims against the Company. During the period under the report the sum of 13,780 was received from The Royal Bank of Scotland following a review of the payments made by the Company under the Enterprise Finance Guarantee in 2011 and 2012. Receipts and payments account An account of the receipts and payments in the Administration for the period from 6 February 2016 to 5 August 2016 is set out in section 3 of this report. Outcome for creditors At this time the Administrators are unable to provide a reliable estimate of the likely dividend to creditors as there are material uncertainties regarding future net realisations and the final level of creditor claims. Preferential Creditors The Administrators envisage that preferential creditors totalling approximately 69,000 will be paid in full. Secured Creditors To date, a distribution of 40,000 has bed made to the secured creditor. It is presently anticipated that the secured creditor will suffer a shortfall under its security. Ordinary Creditors The Administrators are unable to comment on whether there will be funds available for distribution to the Company s ordinary unsecured creditors by virtue of the prescribed part. The timing and level of dividend are subject to the level of book debt realisations. The Administrators are also considering the most appropriate strategy for bringing the Administration to an end. The Administrators may use any, or a combination of exit route strategies. In this particular instance, the Administrators envisage that, once the objectives of the Administration have been achieved, the Administrators will file a notice under Paragraph 84(1) Sch.Bi 1A86 with the Registrar of Companies, following registration of which the Company will be dissolved three months later. Drumbow Contracts Limited (in Administration) 2
1. Joint Administrators progress report for the period 6 February 2016 to 5 August 2016 Administrators remuneration The Adminstrators remuneration is approved by the secured and preferential creditors. To date, the Administrators have had approved and drawn remuneration of io,ooo together with outlays of 1,103 both excluding VAT, which has been met from the proceeds available following collection of the book debts. Creditors have previousk been provided with a copy of a Creditors Guide to Administrators Remuneration, however, a further copy of the Guide can be located at: https://ww.r%.org.uk/media/documents/technical librarv/sips/credito rs Guide to Administrators Remuneration Scotland.pdf for apd on Dnimbow of Brown loint Administrator AA Brown andjb Cartu right have been appointed asjointadministrators ofdntmbow Contracts Limited to manage its affairs, business and property as its agents, without personal liability. A A Brown and J B Cartwright are ticensed in the tlnited Kingdom to act as insolvency practitioners by the Institute of CharteredAccountants ofscottand. The Joint Administrators are Data Controllers ofpersonat data as defined by the Data Protection Act 1998. PricewaterhouseCoopers LLP wilt act as Data Processor on their instructions. Personal data wilt be kept secu cc and processed onlyfor matters retating to the Administration. The JointAdministrotors ore bound by the Insolvency Code ofethks rchich can be found ott https://www.gov.uk/government/pubtications/insotvency-practitioner-code-of-ethics Drumbow Contracts Limited (in Administration) 3
2. Statutory and other information Court details for the Administration: Court of Session P95 of 2012 Full name: Drumbow Contracts Limited Trading name: Drumbow Contracts Limited Registered number: SC286369 Registered address: 141 Bothwell Street, Glasgow, G2 TEQ (thrmerlv 3 Inchcorse Place, Whitehill Industrial Estate, Bathgate, EH48 2EE) Company directors: Alexander Clarkson, Anthony MacIde, Mark McConvilie and John McDonald Clarkson Jnr Company secretary: Marion White Clarkson Shareholdings held by the directors and secretary: Mark McConville 12% Drumbow Holdings Limited 88% (of which Alexander Clarkson is also a director) Date of the Administration appointment: 6 february 2012 Administrators names and addresses: Alan Alexander Brown of PricewaterhouseCoopers LLP, 141 Bothwell Street Glasgow, G2 7EQ; and John Bruce Cartwiight of PricewaterhouseCoopers LLP, Atria One, 144 Morrison Street, Edinburgh, EH3 8EX. Appointor s name and address: Mark McConville - 35 Dalrvmple Drive, Coatbridge, North Lanarkshire, ML5 4fG; and Drumbow Holdings Limited - 3 Inchcorse Place, Whitehill Industrial Estate, Bathgate, EH48 2EE. Objective being pursued by the Administrators: (b) achieving a better result for the companvs creditors as a whole than would be likely if the company were wound up (without first being in Administration): failing which (c) realising property in order to make a distribution to one or more secured or preferential creditors. Division of the Administrators responsibilities: The Company, being the appointer of the Joint Administrators, hereby declares pursuant to paragraph 100(2) of Schedule Bi to the Insolvency Act 1986 that all and/or any of the powers which are conferred on the Joint Administrators by the Insolvency Act 1986 may be done by all and/or any of the Joint Administrators acting jointly or alone. Details of any extensions to the initial period of appointment: The Court of Session has granted three extensions to the period of administration, the third of which expires on February 2017. Drumbow Contracts Limited (in Administration) 4
2. Statutory and other information Proposed end of the Administration: Estimated dividend for unsecured creditors: Estimated values of the prescribed part and the Company s net property: Whether and why the Administrators intend to apply to court under Section 176A(5) 1A86: The European Regulation on Insolvency Proceedings (Council Regulation (EC) No. 1346/2000 of 29 May 2000): Dissolution. Unknown at present. Unknown at present. The Administrators may make an application to Court under Section 176A(5) of 1A86 to disapplv the Prescribed Part if the economic benefits to he body of creditors are outweighed by the costs of adjudication. The European Regulation on Insolvency Proceedings applies to this Administration and the proceedings are main proceedings. Drumbow Contracts Limited (in Administration) 5
Drumbow Contracts Limited (in Administration) 6 A receipts and payments account for the period 6 February 2016 to 5 August 2016 is attached. 3. Receipts and payments account
Drumbow Contracts Limited (In Administration) Administrators Trading Account Statement From 0610212016 From 0610212012 of Affairs To 0510812016 To 0510812016 OTHER DIRECT COSTS Direct Labour 1,968.14 (1,968.14) TRADING SURPLUSI(DEFICIT) (1,968.14) Page 1 of 2 PS SQL Vet. 2012.10 31 August2016 14:44
Wage Drumbow Contracts Limited f In Administration) Administrators Abstract of Receipts & Payments Statement of Affairs From 0610212016 From 0610212012 To 0510812016 To 05108/2016 ASSET REALISATIONS Book Tax/VAT Refund Sundry & refunds 13,780.71 13,780.71 Bank Interest Gross 109.96 1,136.25 Trading Surplus/(Deficit) (1,968.14) 13,890.67 169,064.81 debts debts Professional Fees 85,466.56 70,649.43 COST OF REALISATIONS Office holders 10,000.00 Office holders 1,103.00 Legal & 1,100.00 Corporation tax 158.96 Office Stationery & 1,646.71 Debt Collection Sundry Appointment Related 15.00 Statutory advertising 64.45 & Expe 20.83 / Bank interest & 75.00 120.00 (1,175.00) (27,296.19) fees costs, fees expenses Expenses tax/income Fees Property/Assetexpenses Postage Insurance Employee/Subcontractor Costs Finance Costs charges 450.00 6,919.00 6,276.24 442.50 79.50 PREFERENTIAL CREDITORS NIF - & Holiday pay 542.76 (542.76) arrears FLOATING CHARGE CREDITORS Floating Creditor Charge (40,000.00) 40,000.00 12,715.67 101,225.86 REPRESENTED BY VAT Receivable 502.33 lb Current 100,723.53 Administrator Page 2 of 2 PS SQL Ver. 2012.10 31 August 2016 14:44
Rule 2.38 form 2.20B( cot) The Insolvency Act 986 Administrator s progress report Pursuant to Rule 2.38 of the Insolvency (Scotland) Rules 1986 Name of Company Drumbow Contracts Limited Company number 5C2$63b9 (a) Insert full name(s) and address(es) of administrator(s) (hi Insert dates TI We (a) Alan Alexander Brown and John I3ruce Cartwright of PricewaterhouseCoopers LLP 141 Bothwell Street Glasgow G2 7EQ administrator(s) of the above company attach a progress report for the period from (b) 6 Februy 2016 / / (b) 5 August 2016 to Signed J I Administrator(s Dated Contact Details: You do not have to give any contact inlormation in the box opposite hut if you do, it will help Companies House to contact you if there is a query on the form. The contact information that you give will he visible to searchers of the public record Angela McGeever PwC, 141 Bothwell Street. Glasgow 62 7EQ Tel: 0141 355 4000 DX Number DX Exchange When you have completed and signed this form please send it to the Registrar of Companies at: Companies House receipt date barcode Companies House, 4th Floor, Edinburgh Quay 2, 139 Fountainbridge, Edinburgh, EH3 9FF DX 235 Edinburgh / LP 4 Edinburgh-2