More successful returns to creditors
19 November 2015: We are pleased to report that, in a number of cases being managed by our Coventry office, we have recently been able to return funds to creditors.
A.C.K. (Haulage) Limited was incorporated in April 1983 and traded primarily as a road haulage contractor. After many years of successful trading, the company fell upon hard times and the company entered creditors’ voluntary liquidation in June 2011. As well as dealing with the realisation of the company’s tangible assets and book debt ledger, we, as liquidators, identified a number of recoveries which could be made from an associated company in respect of antecedent transactions. These additional asset realisations have enabled us to discharge the preferential creditors in full and to also declare and pay a dividend of 13.25 pence in the pound to unsecured creditors. This is a great result for creditors in the circumstances of this particular matter.
We have also recently declared and paid a dividend of 10.00 pence in the pound to the creditors in an Individual Voluntary Arrangement (IVA). This was in accordance with the debtor’s IVA proposal albeit it was necessary to carry out additional work as joint supervisors of the arrangement to ensure that this dividend quota was met. The latest insolvency statistics relating to IVAs (which can be found in full here: https://www.gov.uk/government/statistics/individual-voluntary-arrangement-outcome-statistics-1990-to-2014) reveal that the average success rate for IVAs has been steadily decreasing for many years, which often means that debtors can find themselves in a worse position than they were in at the outset and a failed IVA usually results in bankruptcy. The fact that so many of the IVAs that we assist debtors to prepare (and thereafter manage on their behalf) reach a successful conclusion is testament to our core value of only providing the correct advice for the client, irrespective of the outcome for ourselves. We will only suggest an IVA if it is the right solution for the client and we are therefore extremely successful in achieving the best outcome for both the client and creditors.
One of our previous articles dealt with the assistance that we can provide to professionals with debt problems (see: assisting-professionals-with-debt-solutions) and we are pleased to report that the debtor referred to in that article recently had their IVA proposal accepted by creditors. We therefore look forward to reporting on a successful outcome in that matter in due course.
We do not always only assist in a formal capacity but we can also offer advice and assistance to a business on an informal basis (i.e. where we are not appointed as office holder in a traditional sense, such as liquidators or administrators). One such case to highlight this point perfectly is the advice and assistance that we provided to the New Bilton Conservative Working Men’s Club following its dissolution. With our assistance, the club’s creditors were paid in full and the property of the club was thereafter distributed amongst the club’s membership. The Trustees of the club were very happy with our input, which enabled the club’s affairs to be dealt with and for a proper conclusion to be reached.
Please do not hesitate to contact any of the BRI Management Team if you have any queries on the services we can offer if you or your clients are experiencing any kind of financial problems or difficulties. We are always committed to providing the right advice first time and every time.