pwc Fletcher Shipping Limited (in Administration)

Transcription

1 pwc Contact Address Direct line Fax Contact details for queries George Hall PricewaterhouseCoopers LLP Fletcher Shipping Limited (in Administration) Joint Administrators progress report for the period 21 August 2015 to 20 February 2016 under Rule 2.38 of the Insolvency (Scotland) Rules Bothwell Street, Glasgow G2 7EQ 24 March 2016 Court of Session Court reference: P907/2015

2 Contents Fletcher Shipping Limited (in Administration) 1 Section Pages 2 Statutory and other information Receipts and payments account 8 1 Joint Administrators progress report for the period 21 August 2015 to 20 February

3 creditors in terms of Statement of Insolvency Practice No.16, dated 21 Introduction In accordance with Rule 2.38 of the Insolvency (Scotland) Rules 1986 creditors with details of the progress of the Administration of Fletcher owned by the Company Sale of the Company s business and assets Asset realisations since appointment August industry on both short and long term contracts. Administrators Administrators appointment on 21 August Shipping Limited ( the Company ) in the six months since the ( 1SR86 ) the Joint Administrators ( the Administrators ) write to provide Background information and initial actions taken by the As outlined in the Administrators proposals, the Company provided vessels from office premises owned by the Company in Portlethen ( the Platform Supply Vessles ( PSV s ) to customers operating in the offshore oil and gas industry in the North Sea. It operated with a fleet of four Administrators following their appointment are contained in the Property ). offering vessles to customers involved in the oil expoloration Administrators proposals dated 9 October 2015 and their report to Details of the background to, and the initial actions taken by the Freehold property Plant and machinery, office furniture & motor vehicles The fleet of four PSV s values shown: The sale of predominently all of the Company s business and assets for the Fletcher Shipping Limited (in Administration) 2 administration. The sale included the sale of the following assets for the sum of l4million concluded on 21 August 2015, the date of All other tangible and in tangible fixed assets & stock 1. Joint Administrators progress report for the period 21 August 2015 to 20 February ,661, ,000 38,600 ingathered. Total collections have amounted to 864,562 with remaining balances equaling 29,739 being subject to either a valid set-off or a In addition, at the date of administration, income had accrued in respect of services undertaken by the Company but not yet invoiced. As advised in The following assets were excluded from the sale: Trade debtors balances totalling 894,301. As advised in the Administrators proposals, At the date of administration the Company s had 5 oustanding debtor all collectable balances outstanding at the date of administration have been source. dispute by the customer. No further realisations are anticipated from this outstanding loan balance due to the Company at the date of administration. administration for the accrued income. the Administrators proposals, invoices were raised after the date of received into the Administration. An overpayment amounting to 15,938 Following set-off of valid credits, gross funds of 450,803 have been made by one customer will shortly be refunded, resulting in net are accordingly complete. realisations from this source of434,865. Realisations from this source Other debtors In addition to the trade debtors referred to above, we have also ingathered The Administrators have also been liaising with 2 individuals to whom the 112,738 from Marine Managers Limited ( MML ), which represented an with training requirements. The total outstanding loan balances due from the indivduals at the date of Administration amounted to 8,675. Company had loaned funds, under formal written agreements, to assist the Administrators are continuing to collect the monthly loan repayments. Each debtor has continued to make the regular loan repayments due to the Company under the loan agreements after the date of Administration and

4 Tax refund As detailed in the Administrators proposals, an apportionment of a Prepayments been completed and the purchaser of predominently all of the Company s number of prepayments made by the Company prior to the date of administration, which relate to insurance, salaries and vessel services, has business and assets has reimbursed the Company a total of 121,218. Insurance claim Prior the the date of administration, the Company had intimated a claim to its insurers for compensation for the costs of repairs required to a Port Adjuster s costs. appointed by the Company s insurers have intimated that the gross value Shaft Generator aboard one of the Company s PSV s. Loss Adjusters The Administrators instructed their insurance brokers to review this claim of the claim amounts to 97,879, prior to the deduction of the Loss After the deduction of the Loss Adjuster s costs, we anticipate realising a and they have agreed with the Loss Adjusters determination. sum of approximately 88,00o from this claim. Interest Rate Hedging product t IRHP ) In September 2014, the Company instructed Williamstone Consulting former bankers, the Royal Bank of Scotland plc ( RBS ), to establish whether any offer of redress or other compensation maybe due to the Limited ( Williamstone ) to review the facilities made available to it by its Company as a result of an IRHP the Company had entered into in Fletcher Shipping Limited (in Administration) 3 Administrators from RBS. The Administrators are continuing to liaise with resulted in RBS agreeing to review the sale of the IRHP. As previously advised, an offer from RBS to settle the claim has been received by the Prior to the date of administration a claim was intimated to RBS, which RBS and Williamstone in relation to the offer. 1. Joint Administrators progress report for the period 21 August 2015 to 20 February 2016 The Company s former banking facilities held with RBS were refinanced in full and any funds available from settlement of this matter will be made VAT reclaim available in full for the benefit of the insolvent estate. The Administrators proposals outlined that pre-appointment VAT The latter claim of 49,685 has been subject to detailed review by the reclaims of 175,560 and 49,685 were due to the Company. The reclaim Administrators and it is anticipated that the sum of 43,419 will be repaid of 175,560 has been received. to the Company by HMRC. A reclaim for this amount has been submitted The Administrators have collected a refund of 10,939, due from the Company s pre appointment insurers in relation to an overpayment of to HMRC and the Administrators await receipt of the funds. books and records which relate to the outstanding amount to determine whether the sum apparently due can be repaid to the insolvent estate. Per the Company s statement of affairs a tax refund of 2,521 is due to the Company. The Administrators are currently revieiwng the Company s Administration following the sale of predominantly all of the Company s business and assets, with the agreement of the secured creditor. Other refunds by the Company pre-appointment. insurance premium tax ( IPT ). The Administrators have also collected nominal car road tax refunds totalling 152, in respect of vehicles operated Funding The costs and expenses of the Administration to date have been met from the realisations referred to above and a balance of funds retained in the

5 Distributions to the secured creditor of 14,318,122; 3,062; Circulation of the Administrators proposals period 21 August 2015 to 20 February 2016 is set out in section 3 to this report. On 9 October 2015 the Administrators circulated their proposals for approved by creditors without modification at a meeting of creditors held achieveing the purpose of administration to creditors. The proposals were An account of the receipts and payments in the administration for the Receipts and payments account Payments in the period comprise: Legal fees of 14,857; Material contracts of Li. Sale of stock of Li.; Goodwill and records of 2; Refund of IPT of 10,939; Receipts in the period comprise: on 28 October Fletcher Shipping Limited (in Administration) 4 1. Joint Administrators progress report for the period 21 August 2015 to 20 February 2016 Sale of freehold land & property of 300,000; Pre appointment VAT refund of 175,561; Other debtors of 114,338; Reimbursement of prepavments of 121,219; Sale of plant and machinery of 38,600; Third party payment errors, subsequently refunded of 14,657; Interest earned of 1,802 on funds invested; Car tax refunds of 152; Sale of the fleet of 4 PSV s of13,661,395; Trade debtors of1,315,365; Refunding third parts payment errors of 14,657; Intellectual property; Li; and secured creditor will be repaid in full from asset realisations, as this is entirely dependant upon the level of settlement achieved in relation to the Outcome for creditors Santander plc ( Santander ) held legal charges over the four PSV s owned and operated by the Company, together with a standard security over the the assets of the Company. To date distributions of 14,813,122 have been Company s freehold property. It also holds a bond and floating charge over floating charge. We are unable at this stage to determine whether the made to Santander under its legal charges, standard security and bond and The Company had no employees and has no preferential creditors. IRHP claim and the subsequent corporation tax liability payable. It is anticipated that floating charge realisations will be sufficient to allow a distribution to be made to the ordinary unsecured creditors via the prescribed part, however, the timing and quantum of the prescribed part distribution is unclear at present as it is entirely dependent on realisation be payable on settlement of the IRHP claim. of the assets referred to above, the costs and expenses of the administration, and finalisation of the corporation tax liability which may Consultancy fees of L4,5oo; Costs related to the preparation of the statement of affairs of Bank charges of 540; and General expenses of 255 Insurance of 1,981;

6 Ir ti rate of /(JAA Brown Administrators remuneration The Administrators remuneration will be fixed under Rule 2.39 of 1SR86. No remunderation has been sought or drawn to date. incurred time costs of 125,875, which represents hours of chargeable time by the Administrators and their staff at an average hourly During the period under report, the Administrators and their staff have A A Brown and JB Cartwright have been appointed as JointAdministrators offtetcher personal liability. Both A A Brown and JB Cartwright are ticensed in the United Kingdom for and on behalf of Fletcher Sinnin Limited Joint Administrator Shipping Limited to manage its affairs, business and property as its agents, without Administrators instructions. Personal data wilt be kept secure and processed onlyfor Protection Act PricewaterhouseCoopers LLF will act as Data Processor on the Joint to act as insolvency proctitioners by the Institute of Chartered Accountants of Scotland. Fletcher Shipping Limited (In Administration) 5 The Joint Administrators Oct as Data Controllers ofpersonal data as defined by the Data matters relating to the administration. The Joint Administrators are bound by the Insolvency Code ofethics which can befound at: 1. Joint Administrators progress report for the period 21 August 2015 to 20 February 2016

7 Michael Collis Fletcher Shipping Limited (in Administration) 6 Changes in office holder: None Date of the Administration appointment: 21 August 2015 Company secretary: Karen Fletcher Registered number: SC32n61 Trading name: Fletcher Shipping Court details for the Administration: Court of Session P907 of Statutory and other information full name: Fletcher Shipping Limited Registered address: 141 Bothwell Street, Glasgow G2 7EQ (formerly Unit L2 Badentoy Avenue, Company directors: Keith Fletcher, Sheena Holland, Michael Porter, Anthony Duffield and Administrators names and addresses: Alall Alexander Brown of PricewaterhouseCoopers LLP, 141 Bothwell Street, Shareholdings held by the directors and secretary: Keith Fletcher and Karen Fletcher each hold 50 ordinar shares and Appointor s / applicant s name and address: The directors of the Company c/o Keith Fletcher, Cassochie House, North Objective pursued by the Administrators: Achieving a better result for the Company s creditors as a whole than would Badentoy Park, Portlethen, Aberdeen, AB;2 4YB) 1,000,000 redeemable preference shares Glasgow G2 7EQ and John Bruce Cartwright of PricewaterhouseCoopers LLP, Atria One, 144 Morrison Street, Edinburgh, EH3 8EX be likely if the Company were wound up fwithout first being in Cassochie, Methven, Perth, PHi 3RT one or more secured or preferential creditors. administration) and realising properly in order to make a distribution to

8 Sch.B; IA$6. creditors. Fletcher Shipping Limited (in Administration) 7 Division of the Administrators responsibilities: In relation to Paragraph 100(2) Sch.Bi of the Insolvency Act 1986 ( 1A86 ) Details of any extensions to the initial period of appointment: The administration is due to expire on 20 August In the event that an Proposed end of the Administration: Dissolution in terms of Paragraph $4 Sch.Bi 1A86 or move from Estimated dividend for imsecured creditors: It is anticipated that unsecured creditors will receive a distribution via the Whether and why the Administrators intend to apply to court It is not currently the Administrators intention to apply to court under property: Company s net property as the level of net property is entirely dependent on Estimated values of the prescribed part and the Company s net It is not possible at this stage to accurately estimate the value of the under Section 176A(5) 1A86: Section 176A(5) 1A86. The European Regulation on Insolvency Proceedings (Council The EC Regulations on Insolvency Proceedings applies to this Regulation (EC) No. 1346/2000 of 29 May 2000): administration and the proceedings are main proceedings. 2. Statutory and other information it is specified that the functions to be exercised by the Joint Administrators enactment to be done by an administrator may be done by either or both of the Joint Administrators and/or any other persons holding the office of are all functions which the Joint Administrators will require to exercise in administrator of the Company from time to time, acting jointly or alone. relation to their appointment. Any act required or authorised under any extension to the period of the administration is required, the Administrators shall either apply to court or seek consent from the appropriate classes of administration to creditors voluntary liquidation in terms of Paragraph 83 the administration. the realisation of assets, agreement of claims and the costs and expenses of prescribed part following the realisation of the Company s remaining assets, however, the level and timing of any distribution is entirely dependent on balances due to the Company, prepavments, tax, VAT and other refunds, an the ongoing realisation of floating charge assets comprising the debtor insurance claim and settlement of the IRHP mis-selling claim.

9 3. Receipts and Payments A receipts and payments account for the period 21 August 2015 to 20 february 2016 is attached. Fletcher Shipping Limited (in Administration) 8

10 Fletcher Shipping Limited (In Administration) Joint Administrators Abstract of Receipts & Payments Statement From From of Affairs To 20I To 20I02I2016 FIXED ASSETS Freehold Land & Property , Ships 13,661, ,661, ,961, ,961, FIXED CHARGE COSTS OF REALISATION Legal Fees I Disbs 14, , Insurance 1, , Consultancy Fees 4, , FIXED CHARGE CREDITORS (21,337.53) (21,337.53) Chargeholderfi) 14,813, ,813, (14,813,122.00) (14,813,122.00) ASSET REALISATIONS Plant & Machinery 38, , Stock Prepayments 121, , Book debts 1,315, ,315, Goodwill & records Intellectual Property Insurance claims and refunds 10, , Tax/VAT Refund 175, , Sundry debts& refunds Material Contracts Third party funds 14, , Monetary assets 114, , Bank Interest Gross 1, , COST OF REALISATIONS 1,792, ,792, Statementof affairs costs 3, , Refunding third party funds 14, , Finance / Bank interest & charges General expenses (18,514.03) (18,514.03) 901, REPRESENTED BY VAT Receivable Barclays Bank 896, Fixed Ch Vat Receivable 4, , Alan Alexander Brown Joint Administrator Page 1 of 1 PS SQL Ver Match :00

11 Rule 2.3$ Form 2.20B(Scot) The Insolvency Act 1986 Administrator s progress report Pursuant to Rule 2.38 of the Insolvency (Scotland) Rules 1986 Name of Company Company number Fletcher Shipping Limited SC (a) Insert full name(s) and address(es) of administrator(s) (b) Insert dates We (a) Alan Alexander Brown and John Bruce Cartwright of PricewaterhouseCoopers LLP 141 Bothwell Street Glasgow G2 7EQ administrator(s) of the above company attach a progress report for the period from to (b) 21 August 2015 (b)2ofebruary2oi6 Signed Joint Administrator Dated 2Ai1 Contact Details: You do not have to give any contact information in the box opposite hut if you do, it will help Companies House to contact you if there is a query on the form. The contact miormation that you give will be visible to searchers of the public record George Hall PricewaterhouseCoopers LLP, 141 Bothwell Street, Glasgow, G2 7EQ Tel: DX Number DX Exchange When you have completed and signed this form please send it to the Registrar of Companies at: Companies House receipt date barcode Companies House, 4th Floor, Edinburgh Quay 2, 139 Fountainbridge, Edinburgh, EH3 9FF DX 235 Edinburgh / LP 4 Edinburgh-2