Please visit http://www.companyrescue.co.uk/ for confidential help and insolvency advice or email keiths@ksagroup.co.uk

Friday, 24 May 2013

Worried about wrongful trading?


What is wrongful trading

The simple explanation is this: If you act badly when you know the company is insolvent, then you may have some personal liability if the company is liquidated.

An example of this is where directors take deposits from customers knowing that the business is insolvent and is very unlikely to be able to deliver the goods or services that have been requested.

The directors of Farepack were accused of this as they took money for the Christmas savings club before it collapsed.  In fact it turned out they were exonerated (in part) as the banks refused to put the money from deposits in a trust.  This case was unusual however.


So to check for wrongful trading first of all you need to establish if the company insolvent? To establish the answer to this there are three tests:

1.Can the company pay its creditors as and when the debts fall due? This is called the cashflow test.


2.Is there more money owed to creditors than assets? This is called the insolvent balance sheet test.


3.Are there any legal actions outstanding;  For instance a winding up petition.


If any of the three tests above are met, then your company is probably insolvent and you must act properly and act in the best interests of the creditors (all of them being treated in the same way).

For the full guide to wrongful trading then read our site.

Thursday, 23 May 2013

Pension unlocking firm faces liquidation


Freedom Capital Partners Limited is likely to go into voluntary liquidation on the 11th of June at a creditors meeting,  according to Insolvency News.

Freedom Capital Partners is one of the types of firms that can "release" money from your pension before you are 55 and avoid a tax charge of 55%.  However, the firm has been criticized following allegations of high transfer fees.

Pensions minister Steve Webb, warned earlier this month that the government was cracking down on pension liberation companies.

He said: “The promise of easy money when times are tough is all too tempting and there are far too many unscrupulous people who will play upon this.”

You can listen to a report on Radio 4 aired in March about these pension liberation schemes.  Funnily enough the report mentions Freedom Capital Partners and Lothbury Pensions Administrations.  Both of these companies are now in formal insolvency proceedings.

Wednesday, 22 May 2013

Boy Band Blue's music company in administration


The Boy Band members' company Blueworld UK LLP has gone into administration.  This is somewhat bad timing as the band are in the middle of a come back tour which has been a sell out.

Blueworld, which officially went into administration on May 1.  The company runs the fan club and the official website.  To join cost £45 and if the business has gone into administration then fans are unlikely to get refunds.  Other creditors are owed reportedly thousands of pounds.

A band spokeswoman said, “Blue have been open about their recent financial struggles and are restructuring their business model.

The last set of accounts in 2012 showed they were owed £431k but only had £76k in the bank.  Obviously these figures are out of date but it could be a case of getting in bookings etc but not collecting in the cash quickly enough.  Having said that they are unlikely to get their fee for appearances until after the show.  Perhaps they should have asked for more upfront??

The official website is still running and presumably the venues for the events will pay the company once they have performed.  This money will be used to pay the creditors.


Tuesday, 21 May 2013

CVAs explained and Illustrated - Seminar in Leeds 20th June 2013

Venue Bond Dickinson LLP,
1 Whitehall Riverside,
Leeds LS1 4BN
Thursday 20th June 2013      5.00pm – 8.30pm

We have pleasure in inviting you to the following regional seminar, which will provide practical, relevant advice for corporate advisers to local SME companies and their directors. The event will also afford some quality networking time with local business professionals including Accountants, Lawyers, Interims and NEDs. Hospitality will be provided at the event. Parking, if required, is available at the TCS Car Parks, No7
Whitehall Road, Leeds.

The subject under discussion will be:

CVAs  -  Explained, Illustrated and Debated.

The CVA (Company Voluntary Arrangement) process has been enshrined in UK law since the 1986 Insolvency Act came into being; it has been widely used to assist the rescue and recovery of distressed companies. Some of these companies have been high-profile organisations - including high street retailers and famous football clubs - and a CVA can be effective for companies of all sizes and descriptions, from industrial PLC’s to professional ‘LLP’ practices.

It is the aim of this seminar to explain and illustrate this important and effective mechanism so that advisers to SME companies are better equipped to recognise where, when and how a CVA might be applied when an organisation which is in, or nearing, financial trouble.

To assist in this process there will be two key presentations which will include case studies from both the legal and practical point of view; attendees are encouraged to enter into the subsequent debate.

The speakers will be:


Keith Steven


Founder and CEO, KSA Group Ltd. Keith is a member of the Turnaround Management Association, an experienced turnaround practitioner and a recognised exponent of the CVA process.

Partner, Bond Dickinson LLP. John is a main board director  of the Institute for Turnaround and Chairman of their North region, and a recognized authority on the legal aspects of  Turnaround , Corporate Recovery & Restructuring. He is also a licensed insolvency practitioner and an adviser to the CBI and the Law Society on insolvency matters. He sat for 10 years on the Lord Chancellor’s insolvency rules committee, retiring in December 2012 having served the maximum term  




Following the formal part of the event attendees are welcome to enjoy some hospitality during the networking session.

In order to secure your complimentary place at this regional seminar, please contact:
Bond Dickinson on events@bonddickinson.com Tel: 0191 279 9373
or
Robert Moore of KSA Group on robertm@ksagroup.co.uk Tel: on 07584 583884

Monday, 20 May 2013

Director disqualified for paying herself ahead of other creditors


The director of Titcombe Garage Ltd, a vehicle recovery and repair garage in Swindon, has been disqualified from being a company director for six years.  Linda Ann McCracken paid herself and a friend £247,436 instead of other creditors.  The firm went into liquidation at the end of 2010 owing almost £400k.

These payments were made in the weeks leading up to the liquidation and against advice from lawyers the payments were made.  The friend was a director of a consultancy business.

Ms McCracken was subsequently declared bankrupt in July 2012 on the petition of the liquidator for failing to return the funds she took out of the company, which had been in the form of a director’s loan.

Commenting on Mrs McCracken’s disqualification, Chief Examiner David Brooks said: “This result should serve as a timely reminder to directors that any self-serving actions, resulting in removal of company funds or assets when a company is insolvent, are a breach of their obligations to the company and its creditors, and are likely to lead to serious sanction."

Basically if a specific action doesn't feel right then it probably isn't.  If you are worried about directors disqualification then that is actually a good thing.  It shows that you know that when a business is insolvent then your actions as a director are under scrutiny.  So as long as you take advice and do not favour one set of creditors against another then you should be OK.


Friday, 17 May 2013

Pre Packs and CVAs in the Press

Read accountingweb.co.uk's review of the  CVA versus Pre Pack debate on the 8th May.  There is already a lively debate on the page itself!

In essence, as we said before, it is very much "horses for courses" and  CVAs and the Pre Packs have their place.  Both are powerful rescue techniques that save jobs and keep businesses trading.  Yes, Pre packs have been abused in the past and are sometimes perhaps pushed where a CVA would have been a fairer deal for all concerned.  Also there is always a perception of pre packs by creditors that a deal has been done behind their backs and people who lose money will often feel they have been treated unfairly.

The most important thing to do is make sure that a professional firm  is appointed to advise on ALL the options.

If you want to talk about rescuing your business through either a pre pack or a CVA then call us on 0800 9700539


Thursday, 16 May 2013

Hotel opened by Easyjet founder has gone into administration

Ernst &Young has been appointed administrators of Glasgow eH (Trading) the operator of easyHotel in Glasgow City Centre.  The hotel has now been shut.  The hotel's rooms were priced at just £25 a night and was a "super budget" option.  The hotel was converted from a 1970s office block which cost £6m.  A quick back of the envelope calculation has shown that this was always going to be a struggle.

I am going to make some assumptions here;

125 rooms with 90% occupancy at 365 days a year!  = approx £1m a year in revenue  ( this is very optimistic occupancy rate)  The return on capital assuming running costs at £300k pa is 11%  so it would take 9 years to get your money back!  I have no idea how much it cost to buy the site.

Having said that the new owners of Travelodge are convinced there is a strong market for budget hotels in the UK and are investing some £200m over the next few years.  But even Travelodge is £50 a night.

Fiona Taylor of Ernst &Young said: "We are currently undertaking a full review of its financial position, but an immediate lack of funds has necessitated the closure of the hotel and the resultant job losses.

The administrators said the insolvency move does not affect its parent, Glasgow eH Limited Partnership, which owns the site of the former Drummond House, nor the wider easyHotel chain.

Wednesday, 15 May 2013

What is pre pack liquidation?

Pre pack liquidation is a bit of a misnomer.  

A pre pack is the term normally used where the business and assets are sold to a third party or "newco" and the "oldco" is put into administration in one movement.  When people refer to a pre pack liquidation they are most likely thinking of a phoenix.  There is no simultaneous transaction.  To read the differences see our page on pre pack liquidation.

There is so much misunderstanding of the insolvency world.  So for a clearer understanding read our insolvency advice site at www.companyrescue.co.uk

Tuesday, 14 May 2013

Daniel Contractors in administration rumours

Update:  Daniel Contractors have had a winding up petition advertised yesterday. This will mean the bank account will be frozen.

A report in the Sunday Times said that Daniel Contractors, and engineering business based in Warrington, with a workforce of 1,300 was likely to go into administration.  The firm would neither confirm nor deny the rumours.   Deloittes were names as the likely administrator.  A spokesperson for construction credit rating agency Top Service said the firm had been on its radar for a while “due to increasing number of adverse reports from our customers and the mounting County Court Judgements (CCJs)”.  However the total value of the CCJs amounts to £111k but the most recent was lodged on the 8th May.

This could just be a temporary cashflow problem which they can trade out of, but if it is not, the most likely next step is a notice of intention to appoint administrators.  This will protect the company against any further legal actions against the company but they will have a maximum of 20 days, assuming one extension is allowed, before administrators will need to be appointed.


Daniel Contractors are involved in  laying large pipelines and the hire of plant and equipment - The main sector they work in is Oil and Gas.

Like many large engineering firms it suffered in the recession and lost some £100m in sales, margins have been squeezed but added to this its Chief Executive also died not long ago.

Recent accounts show that the firm made £117.4 million in revenues, with pre-tax profits of £1.3 million for 2011.

Turnaround from Local, National, and International perspectives



Date: Wed 12 June, 6pm
Venue: The Waterhouse Chamber, The Town Hall, Blagrave Street, Reading, RG1 1QH
Cost: TMA Members: FREE, Sponsors: £40.00 (after allocated free places),
Non-Members: £40.00



This event, part of the regional activities of the TMA (UK), will focus on the local, national and international turnaround and restructuring marketplace.

CPD
Informing us of the local situation will be Pitmans LLP, the largest law firm in the Thames Valley area. With two offices in Reading and one in the City of London, Pitmans have a long and impressive track-record in Turnaround, Restructuring and Insolvency; as such they are in prime position to present their overview of local turnaround conditions, cases and concerns.

KSA Group Ltd are a nationwide firm of turnaround, restructuring and company rescue specialists, with regional offices and representatives as far afield as Edinburgh, Berwick upon Tweed, Gateshead, Birmingham, Bristol and London. Their operation is supported by a vast online presence of websites and internet response mechanisms, receiving literally hundreds of hits per-day from troubled directors and advisors across the country. As such they are able to report on what is happening in the national turnaround marketplace.

Bryan, Mansell &Tilley LLP are specialists in International Turnaround situations and who better to report on the global situation than Alan Tilley, an internationally renowned figure with the TMA and the industry as a whole. Alan will speak on the current trends, challenges and cases across the globe. The presentation will also contain a brief review of the TMA Europe Conference, which will have taken place in London on 6th & 7th June, and cover the newly launched EACTP (European Association of Certified Turnaround Professionals) accreditation programme.
There will be an opportunity for questions and answers following the presentations.

After the conclusion of the formal part of the event, attendees are invited to enjoy some quality networking time and hospitality will be provided by the event sponsors – KSA Group Ltd.

The event speakers




PitmansS BrookerSuzanne is one of the leading insolvency and turnaround specialists in the South East dealing with all aspects of corporate and individual insolvency, restructuring and refinancing including, but not limited to, contentious and non-contentious issues arising in administrations, receiverships, liquidations (solvent and insolvent), bankruptcies, voluntary arrangements, and security issues, and in restructuring and refinancing projects. Suzanne is a licensed Insolvency Practitioner.
Chambers Guide to Legal Profession for 2010 states that Suzanne has a: "high-level skill set and commitment to meeting her clients' needs". Specialist interests are Debt Recovery, Dispute Resolution, Insolvency & Restructuring, Automotive Sector, Invoice Discounting, Construction & Engineering. Suzanne is a graduate of Middlesex University. She trained and qualified as a commercial litigation and insolvency solicitor at Pitmans, joining in 1994




 K StevenKeith Steven of KSA Group Ltd has been rescuing and turning-around companies since 1994; he has worked for insolvency firms, turnaround funds and venture capital investors. Keith formed his own turnaround practice, KSA Group Ltd in 2001, and he is acknowledged as an expert in the delivery of CVAs for SME companies faced with financial difficulties.
Drawing on case studies from across the UK, Keith will paint a picture of the national scene and illustrate the situation with examples of companies currently being ‘rescued’ or in the ‘work-out/post-restructuring stage. The combination of regions, sectors and corporate ‘tangles’, plus the diversity of rescue options used by KSA Group, should ensure an educational and entertaining presentation.
KSAKSA Group is one of the leading turnaround and insolvency specialists in the UK, with offices and representatives in London and across the country. Their priority is company rescue, not corporate closure. The company developed the UK's first on-line turnaround and support site,www.companyrescue.co.uk, with over 1,500 pages of free information, PDF guides, FAQ's, flowcharts and case studies - information freely available, and of great value, to accountants, lawyers, bankers, advisors and of course directors of /investors in struggling businesses.
KSA Group is delighted to sponsor this evening’s Thames Valley event and is proud to be a Corporate Sponsor of TMA.




BM&T
A TilleyAlan Tilley is founding principal of Bryan, Mansell and Tilley LLP.  He has over 20 year’s expertise in operational and financial turnaround and restructuring, managing the complex issues in preserving enterprise value while operating in the zone of insolvency. He is a frequent speaker on cross border European restructuring and has written several articles on the subject.
He is the 2008 recipient of the TMA International Chairman’s award for outstanding service to the international turnaround and restructuring profession and Insolvency & Rescue UK Turnaround Manager of the Year 2010. He is co author of the Institute of Chartered Accountants best practice guideline on Turnaround’s. His hands-on and Board level experience in finance and operational management makes him equally at home in large and small companies, in distress and performance improvement situations, in M&A due diligence and in stabilising new acquisitions.



If you would like to come along to the event as a Guest of KSA Group get in touch with Robert Moore Please email robertm@ksagroup.co.uk or call 0207 877 0050

Monday, 13 May 2013

Punch Taverns restructuring talks in difficulty

Punch Taverns have been holding talks with its debt holders, which according to insiders, have reached a stalemate. This could lead to the business defaulting on its debts and going into administration.  The group owes some £2.4bn spread between 2 divisions which owns 4000 pubs.  The parent company is paying about £2m per month to stop the divisions defaulting on the debts.

The plan needs the approval of three-quarters of creditors for the restructuring to be implemented. Punch has said that it wants an agreement to be reached by the end of next month, or the company could go into default.

Given the size of the company and its dominance in the UK pub market it is likely some sort of deal will be thrashed out.  Punch have previously said that a pre pack administration would not be in the interests of the company or its shareholders.

A company source told the Mail on Sunday that; ‘We are still trying to achieve a solvent restructuring.’

But one key shareholder said: ‘The company could end up being forced down a pre-pack route, which would wipe out the shareholders, including many employees.’

Punch recorded a pre-tax loss of £16.7 million in the six months to the end of March.   Like so many others pubs have found themselves under increasing pressure from supermarket discounting, taxes and low consumer spending.

If your pub business is struggling why not read our guide on how to rescue your pub, hotel or restaurant business

The guide covers:

  • Is my pub or hotel company insolvent?
  • How can a pub get a time to pay deal with HMRC for PAYE and VAT?
  • What is a Company Voluntary Arrangement and why it is a great rescue tool
  • How to cut costs in your business
  • How to deal with a winding up petition from HMRC.

Friday, 10 May 2013

Construction output down to levels last seen in 1998


Construction output in the UK shrank by 2.4 per cent in Q1 of 2013, falling to its lowest level since 1998.

The decline in output was mainly due to a  sharp fall in new work, especially in the public sector.  There has been a small rise in repair and maintenance work for private housing.  So sounds like the big infrastructure projects will be delayed until nearer the election so that it can flatter the GDP figures...

Construction output, is now 6.5 per cent lower than for Q1 2012.  Construction is down 20% since 2008 when there was a mini boom after the credit crunch.

The UK’s economy has contracted by 2.6 per cent over the same period.

The amount of new housing work available declined by 4.1 per cent and the amount of infrastructure work by 7.5 per cent. Housing repair and maintenance work by public corporations declined by 3.2 per cent, against a 0.4 per cent rise in output for the private sector in this area.

Meanwhile Experian has published statistics that show the insolvency rate among businesses with 25-50 employees fell by 0.07 per cent from 0.24 per cent in March 2012 to 0.17 per cent in March 2013 – almost back to the levels seen in March 2007 of 0.16 per cent and nearly half their peak of 0.35 per cent in March 2009.

Insolvencies also fell by 0.07 per cent amongst businesses with 11-25 employees, down from 0.25 per cent in March 2012 to 0.18 per cent in March 2013. This represents a fall of about 30% in the insolvency rate overall

If you strip out the effect of insolvencies in the construction sector then the rest of the UK businesses are holding out very well.

For insolvency advice visit www.companyrescue.co.uk

Thursday, 9 May 2013

CVA versus Pre Pack Debate

We had almost 100 people come to attend the debate last night at the TMA London event to debate CVAs versus pre packs as an insolvency mechanism.

The audience got to hear about the relative merits of each mechanism and when they are best applied.  There was the inevitable concerns that Pre Packs are unethical and that creditors perceive that they have been "stiffed".  Others were concerned that CVAs leave directors in control and there is no new money brought in to provide working capital.  All these concerns were addressed and debated.

At the end of the evening the vote moved towards CVAs being the better option. However, it was agreed that it is very much "horses for courses" and that all options should be considered.  There is alot of misunderstanding around both of the mechanisms and they each have their place.  The debate highlighted that the power of the CVA is often underestimated, which may explain why so few of them are done.  It also showed that a pre pack can be very effective where there is a danger of the business value falling rapidly but there is someone that can take it over to preserve the business and save jobs.

A pre pack is perhaps more open to abuse than a CVA due to its often rapid execution but there are always going to be a minority of people who don't play fair.

It should be remembered that IPs are brought in after the company is insolvent and needs radical restructuring or closure to prevent a complete meltdown of asset values, loss of jobs and not all creditors being treated fairly as required by law.





HK Taverns in administration

HK Taverns, which managed and operated 50 pubs in the East Midlands has gone into administration.  Graham Bushby and Guy Mander of Baker Tilly Restructuring and Recovery LLP are the administrators

The firm's operations included small community pubs to much larger locations that delivered revenue from food and drink sales.

Mr Bushby, said  that the group was suffering as a result in lower consumer spending and that the company's financial position was unsustainable.

He said: “In response to creditor pressure, the company management reached the inevitable conclusion that the only option was to appoint administrators. Since our appointment we have worked closely with the pub company landlords to facilitate an orderly handover of the leasehold portfolio, thereby in many cases saving jobs and preserving value for all parties."

“We anticipate continuing to trade at five sites, which will secure around 40 jobs, until a buyer for the individual pubs or the group can be found.”

Administration can be a very powerful way of preserving the company.  It is not all about the end of the business!  Yes, some jobs are lost but this is as a result of rapidly cutting costs in a business.  The first aim of administration is rescue after all!  To see how administration can help save your business take a look at our pages on administration and pre pack administration


Wednesday, 8 May 2013

York-based Coggles in administration


Coggles Limited, the fashion retailer based in York, has been put into administration with the loss of 30 out of 60 jobs.  Andy Clay and David Acland of Begbies Traynor are looking to sell the business.

The company was founded in 1974 by Sarah Coggles, and had a successful online presence as well as their stores in Petergate which sold 200 ranges of specialist and popular brands of clothing for both men and women.

Mark Bage, chief executive and creative director of Coggles, said: ""The last two quarters have been the toughest I've seen in the industry. This is the third recession that I have been through but this recession has hit our sector the hardest, which has effectively been a triple dip recession."

Andy Clay of Begbies Traynor said;  “We are currently reviewing the business and making every effort to secure a return for the creditors and a future for the business and its staff.”

2 of the stores are continuing to trade while a buyer is found.

According to the last set of accounts filed the Coggles Limited made a loss of £1.5m to the January 2012

Tuesday, 7 May 2013

KSA Group Insolvency Notices

Platinum Investment Property Limited

Meeting of the Creditors of the above named Company will be held at the offices of KSA Group Ltd, Tower 42, Level 7, 25 Old Broad Street, London, EC2N 1HN on 22 May 2013 at 11.00 am

See the full notice below

http://www.companyrescue.co.uk/insolvency-notices/platinum-investment-property-limited-creditors-voluntary-liquidation-notice


Freeland Travel Goods Limited


Meeting of the Creditors of the above named Company will be held at The Hubworking Centre, 5 Wormwood Street, London, EC2M 1RQ on 21 May 2013 at 10.15 am

See the full notice below

http://www.companyrescue.co.uk/insolvency-notices/freeland-travel-goods-limited-creditors-voluntary-liquidation-notice

For more information on liquidations see our site http://www.creditors-voluntary-liquidation.co.uk

Insolvencies fall significantly in the Q1 of 2013

Figures from the Insolvency service showing the fall in the number of insolvent businesses


Table I. Company Liquidations in England and Wales (seasonally adjusted) 1







% change – Q1 2013 on


2012 Q1 r
2012 Q2 r
2012 Q3 r
2012 Q4 r
2013 Q1 p
Q4 2012
Q1 2012
Company Liquidations
4,297
4,064
3,954
3,823
3,619
-5.3
-15.8
of which:
Compulsory
1,204
1,028
1,078
933
1,043
11.8
-13.4

Creditors’ Voluntary2
3,093
3,036
2,876
2,890
2,576
-10.9
-16.7



Table II. Other Corporate Insolvencies in England and Wales (not seasonally adjusted) 1







% change – Q1 2013 on


2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1 p
Q1 2012
Receiverships2
336
333
277
276
236
-29.8
Administrations
779
625
548
580
557
-28.5
Company voluntary arrangements3
175
3523
161
151
142
-18.9


For the first time since 2008 all forms of insolvency procedure have fallen in number.  Liquidations have fallen some 16% in 2013 when compared to 2012 and administrations and company voluntary arrangements have fallen 30% and 19% respectively.  In fact the numbers are now down to almost pre credit crunch figures

The reasons for this are mixed.  HMRC have adopted a softer stance leading up to the implementation of Real Time Information (RTI) and there has been a significant drop in winding up petitions.  However, the most marked change is in the number of administrations.  These are usually driven by the banks and other secured lenders.  Business confidence is starting to improve and it could be they are holding back on calling in any loans.

It also seems that many companies that have held on for this long are unlikely to fail now.  An increase in economic activity will see increased competition put pressure on weaker companies and there is always the danger of ambitious companies overtrading.




Friday, 3 May 2013

KSA Group Insolvency Notices

Pre-Eminent Consultancy Limited


Meeting of the Creditors of the above named Company will be held at the offices of KSA Group Ltd, Tower 42, Level 7, 25 Old Broad Street, London, EC2M 1HN on 15 May 2013 at 10.15 am

See the full notice below

http://www.companyrescue.co.uk/insolvency-notices/pre-eminent-consultancy-limited-liquidation-notice






Thursday, 2 May 2013

Fake Bake in Liquidation

Sandra McClumpha, the businesswoman, whose business brought the Fake Bake product to the UK has gone into liquidation. She paid £10m for the right to distribute the tanning product in the UK

She is thought to have made £9m from the product, but a few weeks ago a petition was submitted to the Sheriff's Court for a winding-up order.

On Wednesday Zolfo Cooper confirmed that they had been appointed as provisional liquidators for the Bothwell-based company.

Annual accounts for the year 2010 showed the company had assets worth £2.1m and liabilities of £2.4m.  It has been reported that her former business partner used Fake Bake to guarantee a rental agreement on another business, luxury kitchen firm Stone & Wolfe, which is also going through insolvency proceedings.  A claim he denies

The late filing of accounts is often a warning sign of insolvency or disputes and 2010 was some time ago!  Read our page on  warning signs of distressed businesses


Fat Cat Cafe Bars in administration

Fat Cat Cafe Bars, based in Derby, has gone into administration with administrators at Cooper Parry, being appointed as administrators.

The firm had 11 bars and pubs in the UK. The companies currently employ around 200 staff. Some bars are expected to trade on, but some redundancies will be inevitable, the administrators said.

Courtman, head of restructuring at Cooper Parry, said “The companies have been adversely affected by poor trading at a few of their outlets.

"The administration affords the companies the opportunity of restructuring its business whilst continuing to trade. We are keen to explore all options and shall continue to trade those operations for the foreseeable future.”

Wednesday, 1 May 2013

Winding up petitions continue to decline

In April 2013 the number of petitions advertised was just 550 in April 2012 the number was 607 and in April 2011 it was 734.  So the numbers of petitions are still declining

HMRC are now less inclined to send warnings and are moving straight to issuing petitions or using distraint.  In fact, yesterday they issued approximately 130 petitions which is the largest number they have issued in one go for some time.  To see the latest list of companies then go to http://www.winding-up-petition.co.uk/category/latest/.  They do appear to be targeting construction and contracting firms at the moment.

So if HMRC threaten any kind of legal action for the recovery of any tax debts it will either be distraint or a winding up petition.  Distraint can be particularly awkward as they will turn up to your registered office and demand goods be taken away in 7 days if the debt is not paid.  In many cases companies have their registered office at the home and anything belonging to the company, such as car, could be their target.

If you get a visit from HMRC field officer then call us and we will see if we can help.  In many cases it is not too late to save the business.






Sealine International in administration


The luxury yacht maker Sealine International, based in Kidderminster, has gone into administration with the loss of 230 jobs.


In a statement, the administrators at Baker Tilly Restructuring and Recovery said they have given redundancy notices to 234 employees and are assisting them to make claims against the government redundancy fund.

The administrators said they would be working to "maximise recoveries for the company's creditors", which includes the sale of plant and recovery of monies owed to the business.

Sealine became one of the so-called 'Big Four' British yards following strong growth throughout the 1990s. It enjoyed recent success with the SC35/S380 sportscruiser.

Sealine made a £4m pre-tax loss on a turnover of about £33m in the year to 31 December 2011, according the latest available accounts. It had been loss-making for a number of years.

If you are an employee of the business then please take a look at our facebook page where you can see our guide for redundant employees.

Web Analytics