Information Management Consultancy Limited In Liquidation

Transcription

1 Information Management Consultancy Limited In Liquidation For the period from 16 March 2015 to 15 March /05/2016 Our ref: RW/MH/CB

2 To all known members and creditors 9 May 2016 Dear Sir/Madam Information Management Consultancy Limited in Liquidation (the Company ) This is our fourth annual and draft final progress report to members and all known creditors in the above liquidation for the period 16 March 2015 to 15 March If you have any queries in connection with this report, please contact David Baillie on Yours faithfully Rachael Wilkinson Joint Liquidator Rachael Wilkinson and Karen Dukes have been appointed as joint liquidators of Information Management Consultancy Limited. Rachael Wilkinson and Karen Dukes are licensed in the United Kingdom to act as Insolvency Practitioners by the Institute of Chartered Accountants in England and Wales. The joint liquidators are bound by the Insolvency Code of Ethics which can be found at: The joint liquidators are Data Controllers of personal data as defined by the Data Protection Act PricewaterhouseCoopers LLP will act as Data Processor on their instructions. Personal data will be kept secure and processed only for matters relating to the liquidation. Information Management Consultancy Limited In Liquidation 2

3 Definitions used in this report Definition used the Company the liquidators we our joint liquidators ICAEW Term Information Management Consultancy Limited Rachael Wilkinson and Karen Dukes Institute of Chartered Accountants in England and Wales Information Management Consultancy Limited In Liquidation 3

4 Table of contents 1. Introduction Why we re sending you this report Change of liquidator Dividends paid 5 2. Progress made during the period Asset realisations Assets not specifically pledged to creditors Legal matter Statutory and compliance Directors conduct Outstanding Matters 7 3. Outcome for creditors Secured creditors Preferential creditors (mainly employees) Unsecured creditors 8 4. Liquidators fees and other financial information Our fees Our disbursements Creditors rights Receipts and payments account Statement of expenses accrued and unpaid at 15 March Final meetings of members and creditors 10 Appendix A. - Statutory and other information 12 Appendix B. - Receipts and payments account for the period 16 March 2015 to 15 March Appendix C. - Details of our remuneration and disbursements and other professional costs 14 Appendix D. - Statement of expenses accrued and unpaid as at 15 March

5 1. Introduction 1.1. Why we re sending you this report This is our fourth annual and draft final progress report to members and creditors. It will help if you read this alongside our previous progress reports which can be found on our website: This report provides a summary of: The steps taken during the fourth year of the liquidation; Outstanding matters; and The final outcome of the liquidation for unsecured creditors. In Section 2 we provide more detailed information on what we ve been doing during the period covered by this report and in Section 3 we provide information regarding the final outcome for creditors. By law, we have to give you certain statutory information; this is included in Appendix A Change of liquidator Stuart Maddison, one of the previous joint liquidators, has left the firm. To ensure that outstanding issues in the liquidation continue to be pursued, an application was made to the Court to remove him and appoint Rachael Wilkinson as liquidator. Rachael Wilkinson is licensed in the United Kingdom to act as an insolvency practitioner by the Institute of Chartered Accountants in England and Wales. The application was granted and so Rachael Wilkinson replaced Stuart Maddison as joint liquidator with effect from 30 June Stuart Maddison was released from all liability in respect of his conduct as liquidator with effect from 28 August Dividends paid For preferential creditors: i.e. former employees (for unpaid wages up to 800 and holiday pay only) and unpaid pension contributions in certain circumstances: % Recovery Total amount paid Paid: 100 % 19,100 For unsecured creditors: i.e. all other creditors who are neither secured nor preferential: Paid: % 370,490* * 6 dividend cheques amounting to 1, were unclaimed. This amount was forwarded to the Unclaimed Dividend Monies Account within the Insolvency Service along with a fee of Information Management Consultancy Limited In Liquidation 5

6 2. Progress made during the period 2.1. Asset realisations We ve realised the Company s assets as follows:- Assets not specifically pledged to creditors Actual realisations Administration surplus Administration VAT reclaim Less Administration costs paid by the Liquidators - Trading costs & utilities - Employee consultancy costs - Employee travel and subsistence 410, (539) (13,775) (190) 396,756 Books debts Assignment of right of action Refunds Interest 31,000 5,000 4,335 1, , Assets not specifically pledged to creditors With the exception of the Assignment of right of action item discussed below, all other assets were realised in periods predating this report. For further details, please refer to the previous reports. We do not expect any further realisations Legal matter As creditors are aware, the final meeting previously called was cancelled due to the resurrection of a legal matter which had been believed to be finalised. Due to the potential of a substantial return to the Company from a settlement or successful legal action in relation to the matter, the liquidation was kept open. However, it became clear that it was not in the best interests of creditors for the Company to pursue the matter. Further, the Company had insufficient funds with which to do so. We approached the Company directors and other relevant parties to the potential action with a view to assigning the rights of action for value. Following discussions with all relevant parties and after a period of negotiation, the rights of action were assigned to Mr. Alan Springford (one of the Company s directors) and Mr. Christopher Burdge (the Company secretary) ( the Assignees ). In accordance with the requirements of Statement of Insolvency Practice 13: Acquisition of assets of insolvent companies by directors, we are required to provide creditors with sufficient information to have a full appreciation of the nature of this transaction. Information Management Consultancy Limited In Liquidation 6

7 Details of the transaction are as follows: We were independently advised by our solicitors, Blake Morgan LLP; The Assignees were independently advised by their solicitors, Banks Kelly Solicitors Limited; The rights of action were assigned to the Assignees for consideration amounting to 5,000; Our legal costs regarding the assignment amounted to 5,000; The Assignees are to fully and effectively indemnify the Company and the Liquidators from and against all proceedings, costs, claims and expenses howsoever arising out of the assignment; and Due to the level of realisation, there were unfortunately no surplus funds available Statutory and compliance In the period covered by this report, we have prepared and submitted an annual report to all known creditors and submitted it to the Registrar of Companies. We have also instigated case closure procedures Directors conduct One of our duties has been to look at the actions of the Company s directors before it went into liquidation and during administration and consider any points raised by creditors. We ve finished our work on these matters and have complied with our obligation to submit a return or report to the Secretary of State Outstanding Matters There are no outstanding matters to be dealt with in the liquidation, other than case closure procedures. Information Management Consultancy Limited In Liquidation 7

8 3. Outcome for creditors 3.1. Secured creditors There are no secured creditors in the liquidation Preferential creditors (mainly employees) It was estimated in the directors statement of affairs prepared at the date of administration that claims from preferential creditors would total 7,500. Preferential creditors claims were agreed in the sum of 19,100 and settled in full Unsecured creditors According to the directors statement of affairs prepared at the date of Administration, unsecured creditors were estimated to total 4,568,044. Unsecured creditor claims with a value of 4,699,110 were agreed. In accordance with Rule of the Insolvency Rules 1986, notice was given of the intention to declare a first and final dividend and creditors were informed that the last date for proving claims in the liquidation was 19 February Following expiry of the notice on 18 April 2014, a first and final dividend of pence in the pound to all unsecured creditors whose claims had been admitted to rank for dividend purposes was paid. 6 dividend cheques amounting to 1, were unclaimed. This amount was forwarded to the Unclaimed Dividends Monies Account within the Insolvency Service along with a fee of Information Management Consultancy Limited In Liquidation 8

9 4. Liquidators fees and other financial information 4.1. Our fees You may recall that at a meeting of creditors held by the former administrators on 25 October 2011, a creditors committee was formed; this committee subsequently became the liquidation committee. The liquidation committee approved the liquidators fees on a fixed fee basis of 22,500 and the liquidators drew fees in accordance with this resolution in a prior period. No further fees have been or will be drawn in respect of the liquidators remuneration. As detailed in previous reports, time costs are significantly in excess of the fixed fee approved by the liquidation committee. In accordance with Statement of Insolvency Practice 9, we have not provided a similar analysis of time costs for this period, however we have enclosed at Appendix C a narrative detailing the work done during the period of the report. Further details of our fees, together with details of work that we would normally do but has been subcontracted in the period are included in Appendix C Our disbursements We ve incurred disbursements of 3,276 during the period 16 March 2015 to 15 March 2016 and we ve drawn none of these to date. We will not draw all of these disbursements as there are insufficient funds available to meet them. We currently anticipate we will draw 52, based on the remaining funds. Further details are provided in Appendix C Creditors rights Creditors have the right to ask for more information within 21 days of receiving this report as set out in Rule 4.49E of the Rules. Any request must be in writing. Creditors can also challenge the liquidators fees and expenses within eight weeks of receiving this report as set out in Rule of the Rules. This information can also be found in the guide to fees at: %20liquidators%20fees%20final.ashx You can ask for a copy free of charge by calling David Baillie on Receipts and payments account A receipts and payments account for the period 16 March 2015 to 15 March 2016 is provided in Appendix B. This also sets out the estimated final outcome for the liquidation Statement of expenses accrued and unpaid at 15 March 2016 A statement of expenses accrued and unpaid at 15 March 2016 in provided in Appendix D. Information Management Consultancy Limited In Liquidation 9

10 5. Final meetings of members and creditors The work we need to do has now almost finished and we re required to hold final meetings of members and creditors. Attached to this report is a notice of these meetings and a proxy form. The purpose of the meetings is to present this report and for the creditors to consider our release. No formal resolutions will be considered but creditors may propose a resolution against our release. If there is no such resolution, we ll automatically be released from liability in respect of our actions undertaken as liquidators. If you require further explanation of any aspects of this report, but don t wish to attend the meeting, please contact David Baillie by (david.j.baillie@uk.pwc.com), telephone ( ) or in writing (Information Management Consultancy Ltd in liquidation, c/o PwC LLP, Waterfront Plaza, 8 Laganbank Road, Belfast, BT1 3LR) If you wish to attend the meeting, please telephone David Baillie so that arrangements can be made. We must have regard to the convenience of creditors when convening any general meeting. From experience, creditors don t often attend such meetings and so this meeting is being convened at our Leeds office (PwC LLP, Benson House, 33 Wellington Street, Leeds, LS1 4JP) in order to reduce costs. If you wish to attend the meeting but think the venue is inconvenient, it can be reconvened at an agreed venue if you contact us within the next 7 days. This is to ensure all other creditors can be told about the revised arrangements. If you want to propose a resolution against our release the following paragraphs will apply: Individual creditors (i.e. not limited companies): You can vote by simply attending the meeting, provided a proof of debt has been lodged at the address stated in the notice of the meeting before noon on the working day before the meeting. If you don t attend the meeting you may complete a proxy form to nominate: someone else to attend and vote for you; or the chair to vote on your behalf. The proxy form needs to be signed by you. Limited companies: A company is not physically able to attend meetings, so it must appoint someone to attend on its behalf by: completing and returning a proxy form (even if you re a director); or producing at the meeting a sealed or certified copy of a board resolution authorising you to represent that company at the meeting. A company can also complete and return a proxy form to nominate: someone else to attend and vote as its representative; or the chair to vote as its representative. The proxy form needs to be signed by someone authorised to sign on behalf of that company and the nature of that person's authority should be stated. A proof of debt also needs to be lodged at the address stated in the notice of the meeting before noon on the working day before the meeting. Information Management Consultancy Limited In Liquidation 10

11 Important information if you are submitting a proxy: A proxy holder can vote either on your instruction or at their discretion as indicated on the completed proxy form. The proxy form must be lodged at the address stated in the notice of the meeting before noon on the working day before the meeting. Information Management Consultancy Limited In Liquidation 11

12 Appendix A. - Statutory and other information Name of company: Information Management Consultancy Limited Registered number: Registered office: Former trading address: Names of liquidators and their addresses: Benson House, 33 Wellington Street, Leeds, LS1 4JP Unit E, Albany Park Estate, Camberley, Surrey, GU16 7QB Rachael Wilkinson Karen Dukes c/o PwC LLP c/o PwC LLP One Reading Central 7 More London 23 Forbury Road Riverside Reading London Berkshire SE1 2RT BG1 3JH Date of liquidators appointment: Karen Dukes: 16 March 2012 Stuart Maddison: 16 March 2012 (ceased to act on 30 June 2015) Rachael Wilkinson: 30 June 2015 Details of change in liquidators: Rachael Wilkinson replaced Stuart Maddison on 30 June 2015 Details of prior administration: Stuart Maddison and Karen Dukes appointed on 17 August 2011 Ceased to act as administrators on 16 March 2012 Total dividend paid to preferential creditors: Total dividend paid to unsecured creditors: The European Regulation on Insolvency Proceedings (Council Regulation(EC) No. 1346/2000 of 29 May 2000): 100p in paid 7.884p in paid (Final) The European Regulation on Insolvency Proceedings applies to this Administration and the proceedings are main proceedings Information Management Consultancy Limited In Liquidation 12

13 Appendix B. - Receipts and payments account for the period 16 March 2015 to 15 March 2016 Information Management Consultancy Limited - in liquidation Summary of financial information Receipts & Receipts & Receipts & payments Estimated future costs Estimated outcome payments payments for the to 15 March 2016 to complete at 15 March 2015 period 16 March 2015 to 15 March 2016 Receipts Administration surplus 410, , ,443 Administration VAT refund Less administration costs paid by liquidators; - Trading costs & utilities (539) 0 (539) 0 (539) - Employee consultancy fees (13,775) 0 (13,775) 0 (13,775) - Employee travel & subsistence (190) 0 (190) 0 (190) 396, , ,756 Book debts 31, , ,000 Assignment of right of action 0 5,000 5, ,000 Refunds 4, , ,335 Interest 1, , ,107 Liquidation VAT refund 6, , , , , ,125 Payments Statutory Advertising Legal fees & disbursements 3,390 5,000 8, ,390 Liquidators' remuneration 22, , ,500 Liquidators' disbursements Corporation tax Storage costs 16, , ,287 Postage Printing Courier Bank charges Travel and subsistence The Insolvency Service - unclaimed dividends 1, , ,777 VAT 6, , ,927 52, , ,286 Available to preferential creditors 387, ,891 (52) 387,839 Dividend to preferential 100p in (19,100) 0 (19,100) 0 (19,100) Dividend to unsecured p in (368,739) 0 (368,739) 0 (368,739) Funds in hand (52) 0 Unsecured creditors Dividend for unsecured creditors Information Management Consultancy Limited In Liquidation 13

14 Appendix C. - Details of our remuneration and disbursements and other professional costs Background This section sets out the process that was established for setting and monitoring the Liquidators remuneration. The basis of our fees and certain disbursements was agreed by the liquidation committee. The basis of our fees is a fixed fee of 22,500. Details of amounts we have drawn can be found in Section 4. Work we have subcontracted No work has or will be subcontracted in the liquidation. Narrative of key areas of work carried out for the period 16 March 2015 to 15 March 2016 There are a number of distinct work streams within the work we have performed. It should be noted that individuals will have worked in more than one area. The activities of these work streams are summarised below: Area of work Activities completed Statutory and compliance Preparation and submission of an annual report to all known members and creditors, and the Registrar of Companies; and Reviews of the adequacy of the liquidators bonding. Assets Liaising with our solicitors and the Assignees regarding the assignment of a right of action, and completing the assignment of same. Accounting and treasury Management of funds held, processing of receipts and payments, undertaking bank reconciliations. Closure procedures Requesting clearance from HMRC to close the case. Our relationships We have had no business or personal relationships with the parties who approve our fees or who provide services to the liquidation where the relationship could give rise to a conflict of interest. Payments to associates We have not made any payments to associates in the period covered by this report Information Management Consultancy Limited In Liquidation 14

15 Disbursements for services provided by our firm (Category 2 disbursements) We don t need to get approval to draw disbursements unless they are for shared or allocated services provided by our own firm, including room hire, document storage, photocopying and communication facilities. These types of expense are called Category 2 disbursements and they must be directly incurred on the case, subject to a reasonable method of calculation and allocation and approved by the same party who approved our fees. Our expenses policy allows for all properly incurred expenses to be recharged to the case. No Category 2 disbursements arose in the period covered by this report: The following other disbursements arose in the period covered by this report: Other Storage costs 3,276 Total: 3,276 Other professional advisors we ve used We instructed the following professionals in the period covered by this report: Service provided Name of firm / organisation Reason selected Basis of fees (net of VAT) Legal advisors Blake Morgan LLP Experience in insolvency Time costs (capped at 5k) All third party professionals were required to submit time costs analyses and narrative or a schedule of realisations achieved, where appropriate, in support of invoices rendered. We undertook a review of professional firms costs prior to approving invoices for payment. Information Management Consultancy Limited In Liquidation 15

16 Appendix D. - Statement of expenses accrued and unpaid as at 15 March 2016 A statement of expenses accrued and unpaid at 15 March 2016 can be found below: Unpaid expenses at 15 March 2016 (Note 1) Liquidators disbursements 3,276 Statutory advertising 78 Final storage costs (estimated) 4,095 GBP (excluding VAT) Total 7,449 Note 1 - Please note that this schedule provides an estimate of expenses incurred but not yet paid. Any balance that remains unpaid as at the date of this report is yet to be finalised and may therefore be subject to adjustments before final payment. Information Management Consultancy Limited In Liquidation 16