Mercury Graphics Limited in Creditors Voluntary Liquidation ( the Company )

Transcription

1 Mercury Graphics Limited in Creditors Voluntary Liquidation ( the Company ) DRAFT FINAL REPORT OF THE LIQUIDATOR TO CREDITORS AND MEMBERS OF THE ABOVE COMPANY PUSUANT TO RULE 4.49D OF THE INSOLVENCY RULES Statutory Information Registered Office: Trading Addresses: 2 Venture Road, Science Park, Chilworth, Southampton, SO16 7NP 1A Brockhampton Lane, Havant, Hampshire, PO9 1LU Company Number: b Station Road, Hayling Island, Hampshire, PO11 0EA Liquidator: Peter Hall (IP No. 3966) of 2 Venture Road, Science Park, Chilworth, Southampton, SO16 7NP 2. Introduction I refer to my appointment as Liquidator of the above named company on 18 January 2012 and hereby submit my final report regarding the conduct of the liquidation for the period 18 January 2012 to 15 March 2013 in accordance with the Insolvency Act 1986 and the Insolvency Rules. This report should be read in conjunction with my previous reports and correspondence. 3. Assets of the Company 3.1. Receipts & Payments Account A receipts and payments account for the period and in total is attached at Appendix A Book Debts The Company s records showed debtors with a book value of 29,436 at the date of my appointment of which the sum of 14,592 related to bad debts. The debtors ledger was subject to a factoring agreement with Lloyds TSB Commercial Finance Limited ( Lloyds ) and the liability due to Lloyds shown in the directors estimated statement of affairs was 6,075. It was therefore expected that the book debts would have an estimated to realise value of 8,769 in the liquidation. During March 2012 the balance on the debtors ledger was re-assigned from Lloyds to the Company, after deducting their final costs and expenses. We were advised by Lloyds that the ledger balance on their records was 18,161 of which 15,438 related to debts that should have been written off as bad debt. It was therefore expected that in a best case scenario book debts of 2,723 would be realised in the liquidation. Since my appointment the sum of 3, has been realised in respect of those debts. The remainder have proved to be very difficult to collect. After careful consideration I have decided that it would not be cost effective and is unlikely to be of any benefit to the creditors if I were to take any further action in that regard.

2 3.3. Transit Van A desktop valuation of the Transit Van was carried out by Simon Woodhams of Asset Recovery & Insolvency Limited in accordance with the Royal Institution of Chartered Surveyors valuation procedures. The van had a book value of 7,125 and was estimated to realise 3,400. The vehicle was subject to a Hire Purchase agreement with Black Horse Finance who were owed 4,332 it was therefore anticipated that there was negative equity in the vehicle. The Transit Van was collected by Black Horse Finance following my appointment. No realisations have therefore been made in that regard Plant & Machinery A valuation of the Company s plant, machinery and stock was carried out by Simon Woodhams of Asset Recovery & Insolvency Limited in accordance with the Royal Institution of Chartered Surveyors valuation procedures. The assets were expected to have a total value of 1,500 on a forced sale basis and a value in the region of 3,250 on a going concern basis. A sale of the physical assets of the business as at the date of the liquidation and the re-use of the Company name was made to MG Imaging Limited following my appointment for the consideration of 4, plus VAT. Payment of this invoice was received in full on 4 April The sum of 3, has been allocated to the Plant & Machinery in respect of that invoice as shown in the attached receipts and payments account. MG Imaging Limited is connected company of which Alan and Julie Stevenson are directors and shareholders Motor Vehicles The motor vehicle was estimated to realise 450 in the estimated statement of affairs. The motor vehicle was included in the sale of the physical assets to MG Imaging Limited (See Note 3.4). The sum of 1,000 has been allocated to the motor vehicles in the attached receipts and payments account in that regard Directors Loan Account The Company s records showed an outstanding directors loan account as at the date of my appointment of 2,014, due from the directors to the Company. The loan account was recovered in full in the liquidation on 4 April 2012.

3 3.7. Cash at Bank The sum of 1, held in my firms client account was realised in the liquidation following my appointment Rates Refund A refund of National Non Domestic Rates was received in the liquidation from Havant Borough Council in the sum of on 30 May No further realisations are anticipated in this regard Bank Interest Bank interest of 1.61 was received during the period of this report Further Realisations There are to my knowledge no further assets remaining to be realised in this liquidation. If any creditor is aware of assets which are not included in this report, I should be grateful if they would bring them to my attention. 4. Investigations In accordance with the Company Directors Disqualification Act 1986, a report on the conduct of the directors has been submitted to the Insolvency Service. As this is a confidential report I am unable to disclose its content. I can confirm I have not undertaken any investigation outside the scope of that ordinarily required during liquidation proceedings. Creditors Claims 4.1. Secured Creditors Lloyds TSB Bank Plc have a have a floating charge which was created on 9 September 1996 and registered at Companies House on 12 September The Company s records showed a liability to Lloyds TSB Bank Plc of 24,600 at the date of my appointment. Unfortunately there are insufficient records to enable a dividend to any class of creditor in this liquidation Preferential Creditors Preferential creditors were estimated at 15,795 in the statement of affairs. Unfortunately there are insufficient realisations to enable a dividend to preferential creditors in this matter.

4 4.3. Unsecured Creditors Unsecured creditors claims were estimated in the statement of affairs in the sum of 170,881. Unsecured creditor claims of 186, have been received to date. Unfortunately there are insufficient funds to enable a dividend to unsecured creditors. I have therefore not taken any steps as liquidator to agree claims of unsecured creditors in this matter No Dividend Payable In accordance with Rule 11.7(b) of the Insolvency Rules 1986, I attach as Appendix B a formal notice confirming that there will be no dividend in this liquidation. 5. Cost & Expenses Payments made from the liquidation during the period are detailed in the attached receipts and payments account at Appendix A. Advertising costs in respect of statutory notices published in the London Gazette of plus VAT were incurred during the period. A further expense of 189 was incurred during the period in respect of bordereau insurance. These costs were paid by my firm as there are insufficient assets to meet these costs in the liquidation. Should you require any further explanation about these expenses contact my colleague Adam McSweeney in the first instance. 6. Liquidators Remuneration 6.1. Basis of Remuneration At a meeting of creditors held on 18 January 2012, a resolution was passed to agree that my remuneration, as liquidator, be fixed by reference to the time properly spent by me and my staff in attending to matters arising in the liquidation, plus disbursements and VAT Remuneration Attached as Appendix C is a breakdown of the time costs incurred during the period of this report. You will note that my firm has spent 91.2 hours dealing with matters arising during this period, incurring total chargeable costs of 12, which provides an average hourly charge out rate of I have drawn on account of this sum 11, during the period.

5 6.3. Charge Out Rates and Expenses A schedule of my firms charge out rates is attached as Appendix D. Examples of work done by my firm are attached as Appendix E Work Undertaken These costs have been incurred in asset realisations, correspondence with shareholders, directors and creditors, liaison with agents and solicitors, cashiering duties, and general administration including compliance with statutory matters Creditors Rights to Request Further Information Creditors and members have a right to request further information in respect of the Liquidator s remuneration and expenses in accordance with Rule 4.49E of the Insolvency Rules Should any secured creditor or unsecured creditor with the agreement of at least 5% in value of unsecured creditors require any further information about the Liquidator s remuneration or expenses please write to me within 21 days of receipt of this report stating the information required Creditors Rights to Challenge Remuneration and/or Expenses Creditors have the right to challenge the amounts drawn under Rule If a creditor believes that the remuneration charged by the liquidator is too high, the basis of his remuneration is inappropriate, or the expenses incurred by the liquidator are in all the circumstances excessive he may, provided certain conditions are met, apply to court. Application may be made to the court by any secured creditor or unsecured creditor with the agreement of at least 10% in value of the creditors (including that creditor) or with permission of the court. Any such application must be made within 8 weeks of the applicant receiving the liquidator s progress report in which the charging of the remuneration or incurring of the expenses in question is first reported. A Creditors Guide to Liquidators fees may be found on the website Should you require a hard copy please do not hesitate to contact my colleague Adam McSweeney at this office.

6 7. Final Meeting I enclose formal notice convening the final meetings of members and creditors pursuant to Section 106 of the Insolvency Act The final meetings of members and creditors are intended to be held at 2 Venture Road, Science Park, Chilworth, Southampton, SO16 7NP on Monday, 27 May 2013 at 11.00am and 11.30am respectively. The purpose of the meetings is to present this report, and to seek my release as liquidator. These meetings are purely a formality and therefore there is no necessity to attend. Should you wish to attend by proxy please complete the attached proxy form. Proxies must be lodged at my office by 12 noon on the day before the meeting. Should you have any queries regarding this report please do not hesitate to contact Adam McSweeney at this office. Dated this day: Friday 15 March Peter Hall Liquidator