In the Matter of MSA Restoration (UK) Limited And in the Matter of the Insolvency Act and Rules 1986

Transcription

1 In the Matter of MSA Restoration (UK) Limited And in the Matter of the Insolvency Act and Rules 1986 Company Number: Trading As: MSA Restoration (UK) Formerly: No previous names Registered Office: 300 The Avenue, Acocks Green, Birmingham, B27 6NU Trading Address: Same as registered office In accordance with Rule 4.106, I, Eric Walls of KSA Group Limited, C12 Marquis Court, Marquis Way, Team Valley, Gateshead, NE11 0RU, give notice that on 3 June 2011 I was appointed liquidator of MSA Restoration (UK) Limited by resolutions of members and creditors. Notice is hereby given that the creditors of the above named company, which is being voluntarily wound up, are required, on or before 31 August 2011 to send in their full forenames and surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to the undersigned E Walls (IP No. 9113) and W Harrison (IP No. 9703) of KSA Group Limited, C12 Marquis Court, Marquis Way, Team Valley, Gateshead, NE11 0RU, Alternative Contact: E Walls, insolvency@ksagroup.co.uk, , the joint liquidators of the said company, and, if so required by notice in writing from the said joint liquidators, are, personally or by their Solicitors, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution. Dated: 13 June 2011 E Walls Liquidator of MSA Restoration (UK) Ltd

2 Insolvency Act 1986 MSA Restorations (UK) Ltd Estimated Statement Of Affairs as at 3 June 2011 Book Value Estimated to Realise ASSETS Book Debts 141, , Hitachi Capital Invoice Finance Ltd (140,648.00) (140,648.00) Surplus c/d Motor Vehicles 12, , Finance Companies (14,097.00) (14,097.00) Deficiency c/d (8,097.00) Motor Vehicles 26, , Office Equipment 53, , Plant and Machinery 81, , Stock 2, Fixtures and Fittings 36, , IT Equipment 20, , Surplus b/d , LIABILITIES PREFERENTIAL CREDITORS:- Employees - Arrears of Pay / Holiday Pay 39, DEBTS SECURED BY FLOATING CHARGE PRE 15 SEPTEMBER 2003 OTHER PRE 15 SEPTEMBER 2003 FLOATING CHARGE CREDITORS Estimated prescribed part of net property where applicable (to carry forward) DEBTS SECURED BY FLOATING CHARGE POST 15 SEPTEMBER 2003 National Westminster Bank plc 31, , (7,728.07) NIL (7,728.07) NIL (7,728.07) 31, (39,690.53) Estimated prescribed part of net property where applicable (brought down) Unsecured non-preferential claims (excluding any shortfall to floating charge holders) Deficiency b/d 8, Deficiency b/d 39, Trade & Expense Creditors 1,923, Employees - Redundancy and Notice Pay 142, NIL NIL 2,113, Page 1 of 2

3 Insolvency Act 1986 MSA Restorations (UK) Ltd Estimated Statement Of Affairs as at 3 June 2011 Book Value Estimated to Realise Estimated deficiency/surplus as regards non-preferential creditors (excluding any shortfall in respect of F.C's post 14 September 2003) (2,113,103.61) (2,113,103.61) Issued and called up capital Ordinary Shareholders 1, TOTAL SURPLUS/(DEFICIENCY) 1, (2,114,103.61) Page 2 of 2

4 MSA Restoration (UK) Limited In Liquidation Report To a Meeting Of Creditors Held Pursuant To Section 98 Of The Insolvency Act 1986 At The Holiday Inn, Coventry Road, Birmingham, West Midlands B26 3QW On 3 June 2011 at pm 1. Statutory Information 1.1 Detailed below is information extracted either from the statutory books of the company or from records held by the Registrar of Companies. Previous Names: None known Company Number: Date of Incorporation: 22 December 2004 Registered Office: Was 300 The Avenue, Acocks Green, Birmingham, B27 6NU but recently changed to C12 Marquis Court, Marquis Way, Team Valley, Gateshead, NE11 0RU Shareholdings: 1,000 Ordinary Shares of 1, all of which have been issued and fully paid. 1 Ordinary Share Shareholders: Alexander Worboys 475 Michael Bradshaw 325 Susan Bradshaw 200 Directors in the last Alexander Worboys 3 years: Michael Bradshaw Susan Bradshaw Company Secretary: Nature of Business: Trading Address: Susan Bradshaw Washing and dry cleaning of textile and fur products 300 The Avenue, Acocks Green, Birmingham, B27 6NU 2. History of the Company 2.1 The company was incorporated on 22 December 2004 but had previously operated as a partnership since The company operated as a carpet and upholstery cleaner throughout the UK. 2.2 Initially the partnership acquired a franchise operation from Chem-Dry. The directors decided to incorporate the business in Following the incorporation the company began to acquire other Chem-Dry businesses and was able to increase its share of insurance work. 2.3 The insurance market became more competitive and the company found its prices were being driven down. In addition tendering for insurance work became increasingly complex and even more competitive by the implementation of an internet bidding process which further reduced the company s profit margins. 2.4 In 2009, the company lost a major national contract and a smaller contract which resulted in a 45% decrease in overall turnover. Furthermore the company came under increasing pressure from its other customers to reduce prices to retain those contacts. The losses coupled with pressure from remaining contracts led to the company experiencing cash flow difficulties.

5 2.5 The company was able to reduce some overheads but it quickly became apparent that to reduce overheads further would be detrimental to the business moving forward. The company did manage to secure an increase in work with some of its existing contracts. 2.6 Whilst the directors considered the outlook was promising, the company was unable to pay its historical liabilities. In 2010 the company instructed KSA Group Ltd with a view to proposing a company voluntary arrangement ( CVA ) to come to an agreement with its creditors in respect of these liabilities. Regrettably, the CVA became unworkable and accordingly, the directors felt they had no option but to place the company into creditors voluntary liquidation. 2.7 The directors consider that the main reasons for the company s failure were as follows: 1. The loss of a major national contract equating to 40% of the company s turnover; and 2. The increase in competition which resulted in reduced profit margins. 3. Meetings of Members and Creditors 3.1 At a meeting of the board of directors held on 9 May 2011 it was agreed that meetings of members and creditors should be summoned for the purposes of placing the company into Creditors Voluntary Liquidation. Notices were signed summoning the meetings for 3 June The notices were issued to shareholders and creditors on 9 May Accordingly, on 3 June 2011 at a meeting of the shareholders, duly convened at The Holiday Inn, Coventry Road, Birmingham, West Midlands, B26 3QW resolutions were passed placing the company into Voluntary Liquidation and appointing E Walls, who is licensed in the UK to act as an insolvency practitioner by the Insolvency Practitioners Association, liquidator. 3.3 Prior to being asked to advise the directors on the affairs of the company the partners and staff of KSA Group Limited had had no material professional relationship with the company, its directors or shareholders. 4. Transactions with Associated Companies or Trading Organisations 4.1 The company has an associated company called CBW Services (UK) Limited. This company will also be placed into voluntary liquidation. 5. Extracts from Accounts and other Financial Information 5.1 A summary of the company s recent financial history is attached to this report. 6. Statement of Affairs 6.1 A statement of affairs of the company as at 3 June 2011 has been prepared by the directors. A summary of the statement of affairs is attached to this report, along with accompanying notes, and an estimated deficiency account in respect of the period of trading. 6.2 The statement of affairs takes no account of the cost and expenses of the liquidation or of realising the company s assets. 7. Business conducted at the meeting 7.1 Two creditors attended the meeting and a number of proxies had been received in favour of the chairman. 7.2 The chairman opened the meeting and E Walls of KSA Group Ltd, who had been appointed liquidator of the company by the shareholders of MSA Restoration (UK) Limited, presented a brief report to the meeting and reviewed the statement of affairs of the company which had been drawn up to the date of liquidation on his behalf.

6 7.3 There being no further issues raised by the creditors the chairman moved to the formal business of the meeting. Accordingly, creditors approved the following resolutions: the appointment of E Walls of KSA Group Ltd, C12 Marquis Court, Marquis Way, Team Valley, Gateshead, NE11 0RU, was confirmed. a creditors committee was not established. In the absence of a creditors committee: The meeting was informed that an agreed fee of 4,000 plus VAT plus disbursements will be paid to KSA Group Limited in respect of the costs of assisting the director in preparing the statement of affairs and summoning and holding the meetings of members and creditors. The meeting was also informed that KSA Group Ltd had received funds of 1,440 including VAT. The meeting was also informed that KSA Group Limited received 23, plus VAT in relation to the promulgation of the CVA proposal ( 18, plus VAT advisory fees and 4,200 plus VAT nominee s fees). it was agreed that liquidator s remuneration would be calculated by reference to time costs incurred by the liquidator and his staff and authorisation was given for the liquidator to draw remuneration on account of those time costs when he felt it was appropriate. The liquidator informed the meeting that the current charge out rates for staff likely to deal with matters pertaining to this liquidation were as follows: per hour Administrators Managers Partners It was agreed that all disbursements incurred by the liquidator s firm should be reimbursed at direct cost save in the case of postage, stationery and telephone for which a charge of 7.50 per creditor would be levied, and motor travel where a charge of 50p per mile would be made. it was agreed that the level of the liquidator s specific performance bond should be set at 50,000

7 MSA Restoration (UK) Limited In Liquidation Notes to the Estimated Statement of Affairs 1. Book Debts 1.1 Prior to liquidation the company utilised the services of a factoring company (Hitachi Capital Invoice Finance Limited). The factoring company will continue to collect book debts subject to its factoring agreement until the indebtedness and costs had been repaid in full. The estimated to realise value has been provided by the director and takes into account possible bad debts. 2. Motor Vehicles 2.1 The company has a number of motor vehicles subject to finance agreements. It is anticipated that following the sale of those vehicles there will be a deficiency to the finance companies. 3. Tangible assets 3.1 The company s unencumbered tangible assets have been written down to reflect the values usually achieved in a terminal insolvency situation. Book values attributed to those assets have been provided by the directors. No professional valuations have been obtained and the estimated to realise values have been provided by the directors. 4. Prescribed Part of Net Property 4.1 As a result of the Enterprise Act 2002 the preferential creditor status of HM Revenue and Customs, in respect of PAYE, NIC deductions and VAT, was abolished. This change in legalisation also introduced provisions for the liquidator to set aside a certain proportion of the company s net property to deal with the claims of unsecured creditors in advance of the claims of the holder of a floating charge. These provisions only apply if the floating charge was created on or after 15 September The prescribed part does not apply in this case. 5. Amounts due to Employees 5.1 In some instances it has been necessary to estimate the amounts due to employees in respect of arrears of wages, holiday pay, pay in lieu of notice and redundancy. 6. Trade and Expense Creditors 6.1 Details of amounts due to creditors have been taken from the books and records of the company. Inclusion in the statement of affairs of the company does not constitute agreement that these amounts are, or were at any time, owed by the company and does not entitle a creditor to participate in any future distribution. 7. Costs and Expenses of Liquidation and Asset Realisations 7.1 The statement of affairs takes no account of the costs and expenses of the liquidation or realising the assets of the company.

8 MSA Restoration (UK) Limited Statement Of Affairs as at 3 June 2011 B - List of Creditors Unsecured Creditors Name Address A B C & Siddalls Unit 11 Coventry Farm Estate, Newton Road, Torquay, TQ2 7HX 2, ABC Safe Clean Unit 3 - Fordview Industrial Estate, New Road, Rainham, Essex, RM13 8ET ADT Fire & Security ADT House, Tannochside Park, Uddingston, Glasgow City, G71 5PH AMS 2000 Ltd Warrens Farm, Kentisbeare, Cullompton, EX15 2BR 2, Arrow Lift Truck Unit 8 & 9, Kepler, Lichfield Rd Ind Est, Tamworth, Staffordshire, B79 7XE Arval (Marcian) Arval Centre, Windmill Hill, Swindon, Wiltshire, SN5 6PE Aspect Contracts Ltd Aspect House, Honywood Road, Basildon, Essex, SS14 3DS Assuretec UK 20 Shirley Road, St Albans, Hertfordshire, AL1 5ES 2, Autoglass 1 Priory Business Park, Cardington, Bedford, Bedfordshire, MK44 3US B&G Cleaning Systmes Ltd Abeles Way, Holly Lane Industrial Estate, Atherstone, Warwickshire, CV9 2QZ B.D.M.A. Willow Business Centre, 21 Willow Lane, Mitcham, Surrey, CR4 4NA Barrie Beard Ltd Recreation Road, Town Centre, Bromsgrove, B61 8DT 1, Betta Work Wear Ltd 411 Long Acre, Nechells, Birmingham, West Midlands, B7 5JY 2, Birmingham City Council Revenues & Payments Division, PO Box 6637, Birmingham, BA 7AE 11, Boxer Enterprises Ltd Bordesley Hall, The Holloway, Alvechurch, Birmingham, B48 7QA 2, Britannia Movers International Central Office, 1 Pegasus Road, Croydon, Surrey, CR0 4RN British Gas Lakeside 30, The Causeway, Staines, Middlesex, TW18 3BY BT 81 Newgate St, London, EC1A 7AJ, Ref: Cable and Wireless Liberty House, 76 Hammersmith Road, Hammersmith, London, W14 8UD 2.71 Cartrige World Unit A3, Hornbeam Square West, Harrogate, North Yorkshire, HG2 8PA CBW c/o KSA Group, C12 Marquis Court, Marquisway, Gateshead, NE11 0RU 264, CCL Asbestos Unit 7 Station Road, Coleshill, Warwickshire, B46 1HT 1, Chem Dry Franchising Belprin Road, Beverley, East Yorkshire, HU17 0LP 91, Clockwork Removals & Storage 724 Tudor Estate, Abbey Road, London, NW10 7UN Concept Document Recovery Unit 5, Waterside Business Park, Rugeley, Staffordshire, WS15 1LJ 13, Connect First Address Unknown Cornwall (Diamond Clean) Franchise 3 Station Close, Holsworthy, EX22 6DE 171, Delta Tech Address Unknown Dri-Eaz Products Ltd 22 Plover Close, Interchange Park, Newport, Pagnell, MK16 9PS 9, Dutchly Alarms Silverwell, Truro, Cornwall Eden Springs Ltd 3 Livingstone Boulevard, Unit B, HIT Park, Blantyre, G72 0BP EDF Energy 40 Grosvenor Place, London, SW1X 7AA Flow Techniques Narrow Lane, Halesowen, West Mids, B62 9PA Graham Anthony Richards Broughton House, Hollies Lane, Belbroughton, Stourbridge, DY9 9TS 8, Havering (Marcian) London Borough of Havering, Town Hall, Main Road, Romford, RM1 3BB 6, Hawkins Motor Group Black Water, Truro, Conwall, TR4 8ET 2, Hereford Saftety Environment Bills Mills, Pontshill, Ross on Wye, HR9 5TH 3, Hire Station Fields Farm Road, Long Eaton, Nottingham, NG10 3FZ 33, HM Revenue and Customs Durrington Bridge House, Barrington Road, Worthing, BN12 4SE 625, Ian Bass c/o Furley Page LLP - Solicitors, 39 St Margarets Street, Kent, CT1 2TX 384, Industrial Spray Equipment Commerce Court, Challenge Way, BRADFORD, BD4 8NW Inital Washroom Solutions Old Boston Trading Estate, Penny Lane, Haydock, Merseyside, WA11 9ST IRPD 300 The Avenue, Birmingham, B27 6MU 4, John Hall Tyres Unit 56 Percy Bus Park, Rounds Green Road, Oldbury, B69 2DG Johnstones Huddersfield Road, Birstall, West yorkshire, WF17 9XA Landlord Address Unknown 3, Lanes Group 16 Lamson Road Rainham Essex RM13 9YY 2, Lombard North Central Plc 3 Princess Way, Redhill, Surrey, TH1 1NP 18, M Bradshaw 10 Bartley Close, Olton, Solihull, BR2 2RH 1.00 Mass UK Limited 26 Purbrook Road, Monmore Gren, Wolverhampton, WV1 2EJ 3, Miller Commercial Mansion House, Princes Street, Truro, Cornwall, TR1 2RF 1, Morrisons Antique Restorations Old Post Office Cottage, High St, RG20 7LF Mr A Warboys 10 Bartley Close, Olton, Solihull, BR2 2RH 134, NatWest Bank Plc Solihull High Street, Solihull, West Midlands, B91 3TF 31, Nick Ferris Skip Hire 16 Trewarton Rd, Penryn, Cornwall, TR108JB 1,490.30

9 Nobel Health and Safet Unit 13 Barn Close, Langage Business Park, Pymouth, Devon, PL7 5HQ P F Ahem (London) Ltd Oliver Close, West Thurrock, Essex, RM20 3EE PBR Abrasives 8-10 Wolverhampton Street, Willenhall, West Midlands, WV13 2NF Pertemps Meriden Hall, Main Road, Meriden, Warwickshire, CV7 7PT Pitney Bowes PO Box 6569, Harlow, CM20 2FQ 3, PMG Investments Limited The Lakeside Centre, 180 Lifford Lane, Kings North, Birmingham, B30 3NU 3, QLS Address Unknown 10, Quality Cleaners (Midlands) Ltd Unit 6, Cousins St, Wolverhampton, West Midlands, WV2 3DG 11, Redditch Fire Protection Bliss Gate House, Edgioake Lane, Astwood Bank, Redditch, B96 6BG Renault Trucks Midlands Power Way, Black Country New Road, Tipton DY4 OPW Restoration Express 47a Wrecclesham Road, Farnham, Surrey, GU9 8TY 2, Restoration Solutions Address Unknown 8, Royal Bank of Canada 200 Bay Street, P.O. Box 1, Royal Bank Plaza, Toronto, ON M5J 2J5, Canada 1, S Bradshaw 10 Bartley Close, Olton, Solihull, BR2 2RH 1.00 Sebo UK Ltd The Merlin Centre, Cressex Business Park, High Wycombe, HP12 3QL Select Environmental Prosper Park, Bennet Road, Reading, West Berkshire, RG2 0QX 3, SG World Ltd Duchy Road, Crewe, Cheshire, CW1 6ND SGB Vehicle Maintenance Address Unkown Shimmer Telecom Quayside Business Centre, Albion Row, Newcastle-upon-Tyne, NE6 1LL Simpson Packaging Unit 1, Shaw Cross Business Park, Dewsbury, West Yorkshire, WF12 7RF 4, South Staffs Water Green Lane, WalsallWest Midlands, WS2 7PD 5.36 Sparling Recycling Travistock, PL19 0NN Speedlink Address Unkown 2, Stourbridge I D Limited Broughton Hse, Hollies Lane, Belbroughton, Stourbridge, DY9 9TS 5, The Framing Gallery Cryers Hill Road, High Wycombe, Bucks, HP15 6L Titan Technology Friars Gate 2, 1011 Stratford Rd, Solihull, B90 4BN Tom Swainland & Sons Limited Eldan House, North Road, Havering - atter - Bower, Romford, Essex, RM4 1QX 2, Truck Tyre Solutions Pearsall Drive, Oldbury, West Midlands, B69 2RA 1, Uniqcare Ltd 29 St Johns Road, Huddreshfield, West Yorkshire, HD1 5DX Virgin Media Group Address Unkown West Country Self Storage Park Hill Cross, Totnes Rd, Ipplepen, Nr Newton Abbot, South Devon, TQ12 5TN Wilcox Industrial Supply Beldray Park, Beldray Road, Bilston, West Midlands, WV14 7NH Williams Air Conditioning 230 Alcester Road, Birmingham, B47 5HQ Wychavon District Council Civic Centre, Queen Elizabeth Drive, Pershore, Worcestershire, WR10 1PT 5, ,923, Signature Date

10 Appendix 1 (Page 1 of 1) MSA Restoration (UK) Limited Summary of Recent Financial History Accounting Information The following information has been extracted from the Company's annual accounts for the period ended 31 December 2009 and the period 31 December Profit and Loss Account Annual Annual Accounts Accounts 31 December December 2008 Turnover 1,840,944 1,611,406 Gross Profit 749, ,420 Net profit/ (Loss) After Taxation & Dividends 46, ,477 Balance Sheet Fixed Assets 675, ,705 Current Assets 637, ,443 Liabilities (1,029,078) (413,485) Total Assets Less Liabilities 283, ,663 Capital and reserves 1,000 1,000 Profit and loss account 282, ,663 Shareholders Reserves 283, ,663

11 MSA Restoration (UK) Limited Estimated Deficiency Account For the period from 1 January 2010 to 3 June Reserves Balance at 31 December ,919 Amounts written off for the purposes of the statement Motor Vehicles 14,846 Office Equipment 48,048 Plant & Machinery 73,064 Stock 1,600 Fixtures & Fittings 32,619 IT Equipment 18,143 (188,320) (94,599) Extraordinary Items Employees Claims - Redundancy / notice pay 142,020 (236,619) ASSUMED TRADING PROFIT/(LOSS) FOR THE PERIOD (1,876,484) CREDITORS DEFICIENCY PER STATEMENT OF AFFAIRS (2,113,104)