The Waiting Game II
In the bankruptcy of J K Punch, we are pleased to report that a second dividend of 43.36 pence in the pound (totalling £211,333.68) was paid to non-preferential creditors on 6 January 2015. This follows the first dividend to non-preferential creditors of 50.00 pence in the pound which was paid on 2 January 2008. Non-preferential creditors have now received a total of 93.36 pence in the pound in this matter. In addition, preferential creditors received payment in full in October 2007.
Mr Punch was declared bankrupt on 29 April 1993 and therefore it is extremely pleasing that creditors have received such a good return after this long period of time. We are hopeful that there will be even more funds to pay to creditors in due course. An overage agreement was entered into in respect of a large piece of land that Mr Punch owned and due to the development of some of this land, funds of £201,800 were received in October 2014. The overage agreement remains in place until 2021 and therefore we will keep this case open in anticipation that further development will take place on the land thereby increasing its value which we can then realise for the further benefit of the non-preferential creditors. We hope to achieve payment in full for non-preferential creditors with the possibility of statutory interest also being paid on claims, albeit that this is dependant upon the owners of the land obtaining enhanced planning permissions.
Hot off the press...
Peter Windatt was asked by his regulatory professional body, the Association of Chartered Certified Accountants, if he would write an article for Contractor UK which might help guide contractors through the process of exiting from their company both when things have gone well and there is money left in the pot for the business owners, and for when things have not gone to plan and creditors are unlikely to be paid in full. The topic is quite wide ranging and was split into two articles which can be found by clicking on the following links:-
Should you have any queries in relation to the articles or on any insolvency related issue please do contact Peter or any of the BRI Management team via the head office switchboard, 01604 754352 or email@example.com
The Waiting Game
At BRI we like to be able to close cases promptly, assuming all I’s have been dotted and T’s crossed, in order to avoid the need for unnecessary annual meetings. Having said that we are only now closing a Bankruptcy case which we opened in 1998. Not quite a record, but, being some 16 years later than our normal objective which is “to close cases within 15 months”, this might appear to have been a bad result.
Not the case. We are proud to have received a letter from a creditor which says “We think you have worked wonders so far in securing payments of 30p, 18p, 13p and 24p and anything further will be even more icing on the cake” is a delight. We are happy to report that we are sending a further dividend of 13.19p was sent to all creditors taking the total dividend paid to unsecured creditors up to 98.19p in the pound, a distribution of £611,010.27 in addition to which preferential creditors were paid in full a total of £26,765.99.
A “cliff hanger” of an evening...
The BRI team in Milton Keynes hosted an event at the indoor Big Rock Climbing Centre on Wednesday 19 November 2014. The group had mixed climbing abilities ranging from complete beginners to some guests boasting more than 20 years of climbing experience.
There was a growing buzz of excitement and apprehension as guests, not least the novices amongst us, nervously eyed up the imposing walls which were up to 11 metres high. After a vigorous warm up, it was time to climb. Getting to the top was optional, but getting down was mandatory.
One by one we clawed our way up the walls, it soon became clear that many of the guests (and hosts!) had discovered a new love in rock climbing! There was a swelling pride in the room as several new climbers reached the top of the wall for the first time (certainly pushing themselves well beyond their comfort zones). Meanwhile, our handful of expert climbers were keen to show off their skills and to share their knowledge (although there were no “dyno moves” on show). Moreover, there was a sense that many were thrilled to finally be attending a networking event that catered for the sport they love.
For those who felt brave enough at the end of the session, there was an opportunity to graduate to bouldering - low level climbing without rope(!).
It was a thoroughly enjoyable evening, during which we learned that rock climbing is a complex pursuit, but that with the right information and guidance, rapid gains can be made - not a million miles away from the world of business!
It's not over until the final whistle!
On a freezing cold Friday evening, BRI Business Recovery and Insolvency's Milton Keynes office ("BRI") (along with team mates made up of some local accountants and solicitors) took to the field to play a 5 a side match against Metro Bank Plc.
The cold weather clearly had taken effect, as BRI froze from kick off and soon found themselves 5-1 down by half time, with things looking bleak for the second half! Metro Bank's very own Jose Mourinhos' watched on with beaming smiles (also known as Raj Chahal and Mike Adamson).
As the second half commenced the weather became even colder, however, BRI managed to warm their spirits by playing some great football ("tic tac style").
Two late goals from BRI earned a well deserved 9-9 draw to the disbelief of Metro Bank (and some BRI team members). "Fergie Time" certainly helped BRI out on this occasion.
At the immediate post match conference; Tom Guthrie and Marco Piacquadio of BRI (once they had caught their breath) announced that they were delighted with the end result and the fact that they were still (just about) able to run around for an hour without the need of medical assistance.
A future rematch is being planned, at which BRI hope to improve on their solid previous effort and perhaps even start playing from kick off the next time around.
Alan's commitment is recognised by the Prince's Trust
We have previously reported that Alan Limb, from BRI's Southampton office, is a Volunteer Business Mentor for the Prince's Trust. Alan has performed this role since 2001 and has supported 9 young people in that time who have started their own business with the Trust's help.
This commitment was recognised by the Prince's Trust at the South East Values Awards 2014, which were announced at a ceremony in Southampton on 15th October 2014. Alan received the Empowering Award, having been nominated by his current Mentee, Huxley Hunt, a Magician from the Isle of Wight. Huxley offered the following testimonial when he suggested Alan for the Award:
“The second definition of this word (empowering) is - 'make (someone) stronger and more confident, especially in controlling their life and claiming their rights.' And this is exactly what Alan does for me. I know I can be fully honest with him about all aspects of my business and beyond and I know I will get a very level headed, grounded opinion that I trust and respect. It has often been said that I am a Catherine Wheel, when I need to be a Rocket, meaning there is a lot of energy going off in all directions, when I should be focusing all my efforts in one direction... Alan (and his ears and advice) keeps me on the right path. Thank You Alan, for everything”.
Alan said, "I am deeply touched to receive this Award. I am delighted that Huxley views my input so positively. His desire to succeed and his willingness to learn makes him a pleasure to work with."
Midland International (Hire) Services Limited t/a Midland International Motorhomes (in liquidation)
John Rimmer and Peter Windatt were appointed as joint liquidators of Midland International Motorhomes in August 2013. The company had traded from premises on the outskirts of Coventry since the 1980s. The company initially offered marquee hire services but by a chance encounter in the USA the company moved into the business of importing and selling American and European motorhome vehicles. The company traded successfully throughout the 1990s and the 2000s and secured lucrative contracts with the sole UK selling rights to a number of American models. Unfortunately, due to the downturn in the UK economy and the resultant reduction in consumer spending, the company suffered. Numerous options were explored but it became apparent that the company had no alternative but to cease trading in order that the position did not worsen for the company's creditors. The joint liquidators realised the company's assets and are pleased to report that the preferential creditors (employee wage arrears and holiday pay) have been paid in full, the liability to the company's bank has been discharged in full plus interest (thereby releasing the directors from any personal liability) and a dividend of 12.27 pence in the pound has been paid to unsecured creditors.
Chris Green t/a Chris Green Plumbing - IVA
The joint supervisors are pleased to report that a dividend of 92.71 pence in the pound has been declared and paid to creditors following the successful completion of Mr Green's individual voluntary arrangement. This dividend exceeded the amount originally anticipated in the IVA proposal. Mr Green is a self-employed plumber and it is anticipated that he will now be able to move forward successfully having brought his personal affairs into line.