Joint Administrators’ update as at 9 May 2022
The Joint Administrators distributed their statement of proposals to the current known creditors on 9 May 2022. The statement of proposals is a report that explains the circumstances leading up to the administration, a summary of the directors’ statement of affairs, details of how the administrators’ remuneration will be fixed and the objectives of the administration.
The key objective of the administration remains to achieve a better result for the Company’s creditors as a whole, than they would be likely to if the Company were wound up.
The key points made per the proposals include the following:
- All outstanding loans remain subject to the terms agreed with the Company and customers should continue to make payments in the usual way
- The assessment of redress complaints will now be the responsibility of the Joint Administrators and the Joint Administrators are continuing to acknowledge redress claims from customers
- At the date of appointment, there were several upheld redress claims (where customers had received a “Final Response Letter” for their redress claim from either the Company or the FOS) which will now rank as an unsecured claim in the administration
- All FOS complaints have now been handed back to the Joint Administrators, and customers should contact the Company regarding any queries they have regarding their redress claim
- It is estimated that there will be insufficient funds to enable the secured creditor to be paid in full. Therefore, it is not expected that there will be funds available to the unsecured creditors other than by way of the prescribed part (refer proposals for further details on the prescribed part). Furthermore, the Joint Administrators are in the process of considering whether the costs of a prescribed part distribution, given the anticipated volume and complexity of Redress Claims, may exceed funds available for distribution
The Proposals can be accessed at the link below:
10 May 2022 - 10:05