DWL Home Improvements Limited (In Administration)
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
DWL Home Improvements Limited (In Administration)
Joint Administrators’ Progress Report to Creditors For the period from 29 April 2011 to 30 September 2011 For the Purpose of Extending the Administration Pursuant to Rule 2.112(2) of the Insolvency Rules 1986 as amended
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
Names of Joint Administrators:
Paul Clark Geoffrey Bouchier
Date of Appointment:
29 October 2010
Date of Report:
30 September 2011
Appointed By:
The Director of the Company
Court Reference:
High Court of Justice Chancery Division Companies Court London Court No. 8424 of 2010
MCR 43-45 Portman Square London W1H 6LY
CoRPcuvrE RESTR
7Mr
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
CONTENTS 1.
Introduction
2.
Joint Administrators’ Report and Statement of Proposals
3.
Progress of the Administration
4.
Investigations
5.
Dividend Prospects
6.
Joint Administrators’ Receipts and Payments Account
7
Joint Administrators’ Costs and Expenses
8.
EC Regulation
9.
Creditors’ Meeting
10.
Extension of the Administration
11.
Next Report
I
Prescribed Part
APPENDICES L
Statutory Information
2.
Joint Administrators’ Receipts and Payments Account
3.
Joint Administrators’ Time Costs Charged and Expenses Incurred
4.
Postal Resolution
CEIRRORA-FE:
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DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
11
INTRODUCTION
1.1
Paul John Clark and Geoffrey Wayne Bouchier of MCR were appointed Joint Administrators of DWL Home Improvements Limited ("the Company") on 29 October 2010 by the director of the Company pursuant to Paragraph 22 of Schedule Bi to the Insolvency Act 1986 ("the Act").
1.2
In accordance with Paragraph 100(2) of Schedule Bi to the Act the functions of the Joint Administrators are being exercised by any of the Administrators.
13
The purpose of this report is to seek an extension of the Administration for a period of six months in accordance with Paragraph 76(2) of Schedule Bi of the Act in order to allow the Joint Administrators to make a distribution to preferential creditors, and to provide creditors with an update on the progress of the Administration.
2.
JOINT ADMINISTRATORS’ REPORT AND STATEMENT OF PROPOSALS
2.1
The Joint Administrators issued their Report to Creditors together with their Statement of Proposals ("the Proposals") on 10 December 2010.
2.2
In accordance with Paragraph 51 of Schedule B1 to the Act, a creditors’ meeting was held at 43-45 Portman Square, London, W1H 6LY on 6 January 2011. The Proposals were approved at the meeting.
2.3
As advised in the Proposals, the Joint Administrators must perform their functions with the purpose of achieving one of the following hierarchical objectives: . Rescuing the Company as a going concern; or . Achieving a better result for the company’s creditors as a whole than would be likely if the Company were wound up (without first being in Administration); or . Realising property in order to make a distribution to one or more secured or preferential creditors.
2.4
The Joint Administrators were unable to achieve the first objective as the liabilities of the Company made it impossible to sell the shares in the Company.
2.5
The Joint Administrators consider that the second objective will not be achieved as a better result for the creditors as a whole will not be possible.
2.6
The Joint Administrators consider that the third option will be achieved as they are preparing to make a distribution to the preferential creditors of the Company.
. .
RN
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
3.
PROGRESS OF THE ADMINISTRATION
3.1
The manner in which the affairs and business of the Company have been managed since the appointment of Joint Administrators and will continue to be managed and financed are set out below. Sale of Assets
3.2
As previously reported, the assets of the Company were sold to DWL Commercial Projects Limited ("DWL Commercial") on 29 October 2010 for £115,000 (plus VAT where applicable). The sales consideration has been received in full.
3.3
The sale and purchase agreement allows for an uplift in the consideration payable in respect of the Company’s book debt collections made by DWL Commercial, being 15% of collections above £317,000.
3.4
DWL Commercial have advised that the limit of £317,000 has not been exceeded to date. The Joint Administrators continue to monitor the position, however it is highly unlikely that realisations will be of any significance, if any. Cash in Hand and at Bank
3.5
The sum of £2,725 has been received in respect of cash in hand and at bank at the date of appointment. Rates Refund
3.6
A rates refund of £5,399 has been received into the Administration estate. Sundry Receipts
3.7
A surplus of funds from the Company Voluntary Arrangement of £119 has been received.
3.8
Bank interest of £18 has been received to date.
3.9
A pension refund of £6 has been received.
4.
INVESTIGATIONS
4.1
The Joint Administrators’ submitted their report on the director’s conduct to the Department for Business, Innovation and Skills on 12 April 2011.
4.2
The content of this report is confidential. Should any creditor have any further information that they consider should be taken into account by the Joint Administrators when considering the management and conduct of the Company’s affairs then they would ask that you put such information in writing.
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
S.
DIVIDEND PROSPECTS
I
PRESCRIBED PART
Secured Creditors IGF Invoice Finance Ltd (!IGF") 5.1
In consideration for the monies advanced under an invoice discounting agreement the Company granted IGF a mortgage debenture on 6 February 2006, which confers fixed and floating charges over all of the assets of the Company.
52
Immediately following the appointment of the Joint Administrators and the completion of the sale, DWL Commercial paid IGF’s indebtedness in the amount of £140,592 in full and took an assignment of IGF’s security over the Company. National Westminster Bank Plc ("NatWest")
5.3
In consideration for a banking facility the Company granted NatWest a mortgage debenture dated 13 July 2001, which confers fixed and floating charges over all of the assets of the Company.
5.4
Although the Company did not have a formal overdraft agreement with NatWest, the Company did from time to time go overdrawn.
5.5
As at the appointment date the Company had a credit balance with NatWest and therefore the Joint Administrators are unaware of any outstanding amounts due to NatWest. D A Phillips and Co as trustee of the DWL Home Improvements Retirement Benefits Scheme
5.6 D A Phillips and Co as trustee of the DWL Home Improvements Retirement Benefits Scheme ("D A Phillips") holds two chattel mortgages created 20 February 2007 and 8 August 2007 respectively, which confers charges over certain chattel assets of the business. 5.7
Prior to their appointment, the Joint Administrators’ agents valued the assets and determined there was no equity in such. D A Phillips and Co have taken the assets to sell. Preferential Creditors
5.8
Pursuant to the director’s Statement of Affairs (’SOA"), the estimated preferential claims were £28,289.
5.9
The preferential creditors’ claims consist of employee claims for arrears of pay and holiday pay, the majority of which have been subrogated to the Department of Business, Innovation and Skills following payment to the employees by the Redundancy Payments Office ("RPO’).
5.10 The RPO submitted a preferential claim totalling £23,291 on 10 March 2011 in respect of payments made to the Company’s former employees. Additional employee preferential claims total £5,157. 5.11
The Joint Administrators are in the process of agreeing preferential creditor claims with a view to making a distribution of approximately 70 pence in the pound shortly.
RESTRUCTURING
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
Prescribed Part 512
Pursuant to Section 176A of the Act where a floating charge is created after 15 September 2003 a Prescribed Part of the Company’s net property shall be made available to unsecured non-preferential creditors.
5.13
The Prescribed Part is calculated as a percentage of net property, as follows: Net property less than £10,000:
50% of net property; or
Net property greater than £10,000:
50% up to £10,000 plus 20% thereafter to a maximum of £600,000.
5.14
The maximum value of the ring-fenced proportion of the funds, known as the "Prescribed Part", is £600,000.
5.15
Although the security was created post 15 September 2003, based on current information, there will be insufficient net realisations to enable a distribution from the Prescribed Part. Unsecured Non-Preferential Creditors
5.16
According to the SOA, unsecured non-preferential creditors total non-preferential creditors can be summarised as follows:
Trade & Expense Creditors Employees Total
£3,587,305 The unsecured
£ 31 347,231 240,074 31 587,305
5.17
These claims include those creditors who submitted claims within the Company Voluntary Arrangement.
5.18
Based upon the current information available there will be insufficient realisations to enable a distribution to the unsecured non-preferential creditors of the Company.
6.
JOINT ADMINISTRATORS’ RECEIPTS AND PAYMENTS ACCOUNT
6.1
A summary Receipts and Payments Account for the period 29 October 2010 to 30 September 2011 is shown in Appendix 2 and should be self explanatory.
7.
JOINT ADMINISTRATORS’ COSTS AND EXPENSES
7.1
The Joint Administrators’ post appointment time costs incurred in the period are as analysed at Appendix 3. For the period 29 October 2010 to 25 September 2011 the Joint Administrators’ time costs total £106,687 and remuneration of £40,120 has been drawn to date.
7.2
In addition to the above, £14,713 plus VAT and disbursements in relation to the Joint Administrators’ pre-appointment time costs have been drawn in accordance with Rule 2.67A(3) of the Insolvency Rules 1986 (as amended) ("the Rules") and approved at the creditors’ meeting held on 6 January 2011.
: i:
CORPORATE
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
7,3
Information regarding the fees of Administrators called "A Creditors’ Guide to Administrators’ Fees" can be found at the Joint Administrators’ website at wwwmcruk.com . Should you require a copy, please contact the Joint Administrators’ office.
7.4
Details of expenses incurred by the Joint Administrators’ agents have since the last report in dealing with the Administration of the Company are attached at Appendix 3.
7.5
In accordance with Rule 2.48A of the Rules, secured creditors or unsecured non-preferential creditors (with the concurrence of at least 5% in value of unsecured creditors) may make a request in writing to the Joint Administrators for further information about the remuneration or expenses set out in this progress report. This should be done within 21 days of receipt of this report, after which the Joint Administrators have 14 days to respond.
7.6
In addition to the above, any secured creditor or any unsecured non-preferential creditor (with either the support of at least 10% in value of the unsecured creditors or with the permission of the Court), may apply to the Court on the grounds that the remuneration or basis fixed for the Joint Administrators’ remuneration or the expenses incurred by the Joint Administrators are considered to be excessive. In accordance with Rule 2.109 of the Rules, this application must be made no later than 8 weeks after receipt of this progress report, where the charging of the remuneration or the incurring of expenses in question occurs
8
EC REGULATION
8.1
It is the Joint Administrators’ opinion that the EC Regulation on Insolvency Proceedings 2000 ("EC Regulation") apply and these proceedings are main proceedings as defined in Article 3 of the EC Regulation. The centre of main interest of the Company is in England.
9.
CREDITORS’ MEETING
9.1
In accordance with Paragraph 51 of Schedule Bi to the Act, a creditors’ meeting was held at 43-45 Portman Square, London, W1H 6LY on 6 January 2011.
9.2
The Joint Administrators’ Proposals were approved at the meeting by the creditors.
10.
EXTENSION OF THE ADMINISTRATION
10.1
In accordance with Paragraph 78(1)(b) of Schedule Bi to the Act, the Joint Administrators are seeking the consent of the creditors to allow the term of the Administration to be extended by a period of six months.
10.2 The extension is necessary so that the Joint Administrators may finalise the book debt position with DWL Commercial and pay the preferential dividend. 10.3
It is proposed that the request for an extension be dealt with by correspondence in accordance with Paragraph 58 of Schedule Bi to the Act and Rule 2.48 of the Rules. Therefore, please complete and sign the attached postal resolution at Appendix 4 and return it to the offices of the Joint Administrators by no later than 20 October 2011.
CORPURAYE
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
11. NEXT REPORT 11.1 The Joint Administrators are required to provide a Progress Report within one month of end of the next six months of the Administration. This report will be provided no later than 28 November 2011, or earlier if necessary. 11.2
.
If you have any queries or require any further assistance, please do not hesitate to contact Luke Norman of the Joint Administrators’ office. For and on behalf of DWL Home Improvements Limited
aul John Clark Joint Administrator The affairs, business and property of the Company are being managed by the Joint Administrators, Paul Clark and Geoffrey Bouchier, who act as agents for the Company and without personal ilabifity. Both are licensed by the Insolvency Practitioners Association.
RES
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
APPENDIX 1 Statutory Information
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
STATUTORY INFORMATION
Date of incorporation
10 August 1995
Registered number
03089959
Company director
Derek Murphy Ramsden Farm Reading Street Tenterden Kent TN3O 7H5
Company secretary
Janet Murphy
Shareholders
Janet Murphy - 100 ordinary shares & 90 preference shares Delia Hill - 100 ordinary shares & 90 preference shares Justin Murphy - 20 preference shares
Trading address
Queenborough Business Park Main Road Queensborough Kent ME11 5DY
Registered office
Current:
Formerly:
43-45 Portman Square London W1H 6LY
Queenborough Business Park Main Road Queensborough Kent ME11 5DY
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
Year Ended 30 April 2009 (Audited) £
Financial information
Turnover Cost of Sales Gross Profit Selling and distribution costs Administrative expenses Operating Loss Interest receivable Interest payable Loss on Ordinary Activity Before Tax Tax on loss on ordinary activities Loss for the financial Year
6,736,676 (5,905,983) 830,693 (803,252) (883,151) (839,429) (88,396) (927,r 725) 46,678 (881,047)
18 Month Period Ended 30 April 2008 (Audited) £ 14,842,562 (12,511,309) 2,331,253 (1,882,830) (1,540,677) (1,065,517) 21 650 (111 f 647) _ (1,174,514) 41 029 (1,170,485)
As at 30 April 2009 (Audited) £
As at 30 April 2008 (Audited) £
79 1 450
175,075
269,984 1,299,969 166,876 1,736,829
3771601 2 1 875 1 469 21 500 31 255,570
Creditors: amounts falling due within one year Net current assets
(547,049) 1,189,780
(2,903,598) 351,972
Total assets less current liabilities
1,269,230
527,047
Creditors: amounts falling due after more than one year Net liabilities
(2,914,952) (1,645,722)
(1,291,722) (764,675)
Capital and reserves Called up share capital Profit and loss account Shareholders’ deficit
2 (1,645,724) (1,645,722)
2 (764,677) (764,675)
Balance sheet
Fixed Assets Tangible fixed assets Current assets Stocks Debtors Cash at bank and in hand
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
APPENDIX 2 Joint Administrators’ Receipts and Payments Account
DWL Home Improvements Limited (In Administration) Joint Administrators’ Receipts and Payments Account
Statement of Affairs
£ 30,000.00 15,000.00 20,000.00 50,000.00 0.00 0.00 0.00 0.00 0.00 0.00
Receipts Plant & Machinery Motor Vehicles Stock Debtors Cash at Bank Cash in Hand Bank Interest Gross Rates Refund Transfer of Supervisors Fees for VAT Pension Refund Surplus from CVA
29 April 2011 to 30 September 2011
29 October 2010 to 30 September 2011
£
£
11.16 ’K
118.77
115,000.00
147,675.95 Payments Joint Supervisors fees ’K Joint Administrators’ Remuneration Joint Administrators’ Disbursements Joint Administrators’ Pre-Appointment Remuneration Accountants Fees Agents/Valuers Fees Legal Fees Stationery & Postage Storage Costs Statutory Advertising Insurance of Assets Bank Charges
Balance
I
(32,646.58)
MADE UP AS FOLLOWS Floating/main current account VAT Receivable
’K
30,000.00 15,000.00 20,000.00 50,000.00 1,662.73 1,062.37 18.20 5,399.38 24,408.70 5.80 118.77
Joint Supervisors’ fees have been included in the Receipts & Payments Account to allow the VAT to be recovered
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
APPENDIX 3 Analysis of Joint Administrators’ Time Costs Charged and Expenses Incurred
DWL HOME IMPROVEMENTS LIMITED (IN ADMINISTRATION) Analysis of Joint Administrators’ time costs for the period 29 October 2010 to 25 September 2011
Hours
Classification of Work Function
Partner
Manager
Senior
Assistant
Support
Total
Time
Av hourly
Hours
Cost
Rate
Administration and Planning Statutory matters (Meetings, Reports and Notices)
1.50
5.40
33.00
47.20
87.10
16,743.50
192.23
Strategy planning &control
3.20
10.20
16.80
3.90
34.10
10,402.00
305.04
Cashiering &accounting
2.40
219.37
2.90
14.10
17.80
37.40
8,204.50
Dealings with Directors and Management
1.60
13.70
22.90
38.20
7,017.00
183.69
Case review and Case Diary management
5.10
8.70
11.50
25.30
5,838.50
230.77
Tax Compliance/Planning
0.60
216.81
Insurance Statement of affairs
0.80
IPS set up & maintenance
0.20
0.20
6.40
4.60
11.60
2,515.00
2.00
2.20
4.20
721.00
171.67
0.30
0.30
1.40
380.00
27143
1.70
1.90
278.50
146.58
9.30
24.70
5,379.50
217.79
3.70
3.70
516.00
139.46
Investigations CDDA, reports & Communicaton
0.30
0.80
14.30
Financial review and investigations (5238/239 etc)
Realisation of Assets Freehold and Leasehold Property
0.10
3.80
12.10
4.60
20.60
5,576.50
270.70
Book debts
0.50
2.30
10.40
2.40
15.60
4,499.00
288.40
Sale of business
1.50
0.30
6.30
0.30
8.40
2,498.00
297.38
Plant, Machinery, Fixtures and Motor Vehicles
1.20
3.80
4.20
9.20
2,113.00
229.67
Stock and Work In Progress
0.10
1.30
1.40
399.50
285.36
Other Intangible Assets
0.80
0.80
292.00
365.00
1.50
1.50
150.00
100.00
0.60
0.70
82.00
117.14
3.80
1,000.50
263.29
294.92
Pre-Appointment Tax Reclaims Other Tangible Assets
0.10
Trading Trading - Retention of Title, Claims handling
110
270
4.60
50.70
0.30
56.10
16,545.00
0.80
15.90
83.90
100.60
12,845.00
127.68
3.30
3.30
6.70
2,236.00
333.73
0.60
213.00
355.00
0.60
64.00
106.67
0.50
177.50
355.00
Creditors Communications with Creditors/Employees
0.50
Non Pref Creditors/Employee claims handling Pref claims adjudication and distribution
0.10
Secured Creditors
0.60
Non Pref Creditor claims adjudication and dist’n
0.60
Case Specific Matters 0.50
Total Hours Total Fees Claimed ()
10.10 51 289.50
47.001 18,290.5
Category 2 Disbursements: There are no Category 2 disbursements for this case to date.
215.90 59,452.5
223.50
0.201
23,648.00
6.00
496.70
214.79 106,686.5
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
EXPENSES INCURRED
Company
Role
Downs Solicitors LLP
Review the sale of business contract and other ad hoc legal matters. Report mailing costs Storage costs
Accurate Mailing Total Data Management
Amount Incurred & Paid £ (excl., of VAT) 935 286 1,076
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
APPENDIX 4 Postal Resolution
Form 2.25B Rule 2.48
Notice of conduct of business by correspondence Name of Company
Company number
DWL Home Improvements Limited
03089959
In the High Court of Justice Chancery Division Companies Court
Court case number
8424 of 2010 (full _name _of_court)
(a) Insert full name(s) and address(es) of administrator(s)
(b) Insert full name and address of registered office of the company
(c) Insert number of resolutions enclosed
(d) Insert address to which form is to be delivered (e) Insert closing date
Repeat as necessary for the number of resolutions attached
Notice is hereby given by (a) Paul John Clark and Geoffrey Wayne Bouchier of 43-45 Portman Square, London, W1H 6LY,
To the creditors of (b) DWL Home Improvements Limited of 43-45 Portman Square, London, W1H 6LY,
That, pursuant to Paragraph 58 of Schedule Bi to the Insolvency Act 1986, enclosed is (c) one resolution for your consideration. Please indicate below whether you are in favour or against the resolution. This form must be received at (d) 43-45 Portman Square, London, W1H 6LY, By 12.00 hours on (e) 20 October 2011 in order to be counted. It must be accompanied by details in writing of your claim. Failure to do so will lead to your vote being disregarded. (1)
"That the term of the Administration be extended by a period of six months" I am *in Favour/Against
TO BE COMPLETED BY CREDITOR WHEN RETURNING FORM Name of creditor:
Signature of creditor: (if signing on behalf of creditor, state capacity e.g. director/solicitor)
DWL Home Improvements Limited (In Administration)
Joint Administrators’ Progress Report to Creditors For the period from 29 April 2011 to 30 September 2011 For the Purpose of Extending the Administration Pursuant to Rule 2.112(2) of the Insolvency Rules 1986 as amended
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
Names of Joint Administrators:
Paul Clark Geoffrey Bouchier
Date of Appointment:
29 October 2010
Date of Report:
30 September 2011
Appointed By:
The Director of the Company
Court Reference:
High Court of Justice Chancery Division Companies Court London Court No. 8424 of 2010
MCR 43-45 Portman Square London W1H 6LY
CoRPcuvrE RESTR
7Mr
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
CONTENTS 1.
Introduction
2.
Joint Administrators’ Report and Statement of Proposals
3.
Progress of the Administration
4.
Investigations
5.
Dividend Prospects
6.
Joint Administrators’ Receipts and Payments Account
7
Joint Administrators’ Costs and Expenses
8.
EC Regulation
9.
Creditors’ Meeting
10.
Extension of the Administration
11.
Next Report
I
Prescribed Part
APPENDICES L
Statutory Information
2.
Joint Administrators’ Receipts and Payments Account
3.
Joint Administrators’ Time Costs Charged and Expenses Incurred
4.
Postal Resolution
CEIRRORA-FE:
Pr
I
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
11
INTRODUCTION
1.1
Paul John Clark and Geoffrey Wayne Bouchier of MCR were appointed Joint Administrators of DWL Home Improvements Limited ("the Company") on 29 October 2010 by the director of the Company pursuant to Paragraph 22 of Schedule Bi to the Insolvency Act 1986 ("the Act").
1.2
In accordance with Paragraph 100(2) of Schedule Bi to the Act the functions of the Joint Administrators are being exercised by any of the Administrators.
13
The purpose of this report is to seek an extension of the Administration for a period of six months in accordance with Paragraph 76(2) of Schedule Bi of the Act in order to allow the Joint Administrators to make a distribution to preferential creditors, and to provide creditors with an update on the progress of the Administration.
2.
JOINT ADMINISTRATORS’ REPORT AND STATEMENT OF PROPOSALS
2.1
The Joint Administrators issued their Report to Creditors together with their Statement of Proposals ("the Proposals") on 10 December 2010.
2.2
In accordance with Paragraph 51 of Schedule B1 to the Act, a creditors’ meeting was held at 43-45 Portman Square, London, W1H 6LY on 6 January 2011. The Proposals were approved at the meeting.
2.3
As advised in the Proposals, the Joint Administrators must perform their functions with the purpose of achieving one of the following hierarchical objectives: . Rescuing the Company as a going concern; or . Achieving a better result for the company’s creditors as a whole than would be likely if the Company were wound up (without first being in Administration); or . Realising property in order to make a distribution to one or more secured or preferential creditors.
2.4
The Joint Administrators were unable to achieve the first objective as the liabilities of the Company made it impossible to sell the shares in the Company.
2.5
The Joint Administrators consider that the second objective will not be achieved as a better result for the creditors as a whole will not be possible.
2.6
The Joint Administrators consider that the third option will be achieved as they are preparing to make a distribution to the preferential creditors of the Company.
. .
RN
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
3.
PROGRESS OF THE ADMINISTRATION
3.1
The manner in which the affairs and business of the Company have been managed since the appointment of Joint Administrators and will continue to be managed and financed are set out below. Sale of Assets
3.2
As previously reported, the assets of the Company were sold to DWL Commercial Projects Limited ("DWL Commercial") on 29 October 2010 for £115,000 (plus VAT where applicable). The sales consideration has been received in full.
3.3
The sale and purchase agreement allows for an uplift in the consideration payable in respect of the Company’s book debt collections made by DWL Commercial, being 15% of collections above £317,000.
3.4
DWL Commercial have advised that the limit of £317,000 has not been exceeded to date. The Joint Administrators continue to monitor the position, however it is highly unlikely that realisations will be of any significance, if any. Cash in Hand and at Bank
3.5
The sum of £2,725 has been received in respect of cash in hand and at bank at the date of appointment. Rates Refund
3.6
A rates refund of £5,399 has been received into the Administration estate. Sundry Receipts
3.7
A surplus of funds from the Company Voluntary Arrangement of £119 has been received.
3.8
Bank interest of £18 has been received to date.
3.9
A pension refund of £6 has been received.
4.
INVESTIGATIONS
4.1
The Joint Administrators’ submitted their report on the director’s conduct to the Department for Business, Innovation and Skills on 12 April 2011.
4.2
The content of this report is confidential. Should any creditor have any further information that they consider should be taken into account by the Joint Administrators when considering the management and conduct of the Company’s affairs then they would ask that you put such information in writing.
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
S.
DIVIDEND PROSPECTS
I
PRESCRIBED PART
Secured Creditors IGF Invoice Finance Ltd (!IGF") 5.1
In consideration for the monies advanced under an invoice discounting agreement the Company granted IGF a mortgage debenture on 6 February 2006, which confers fixed and floating charges over all of the assets of the Company.
52
Immediately following the appointment of the Joint Administrators and the completion of the sale, DWL Commercial paid IGF’s indebtedness in the amount of £140,592 in full and took an assignment of IGF’s security over the Company. National Westminster Bank Plc ("NatWest")
5.3
In consideration for a banking facility the Company granted NatWest a mortgage debenture dated 13 July 2001, which confers fixed and floating charges over all of the assets of the Company.
5.4
Although the Company did not have a formal overdraft agreement with NatWest, the Company did from time to time go overdrawn.
5.5
As at the appointment date the Company had a credit balance with NatWest and therefore the Joint Administrators are unaware of any outstanding amounts due to NatWest. D A Phillips and Co as trustee of the DWL Home Improvements Retirement Benefits Scheme
5.6 D A Phillips and Co as trustee of the DWL Home Improvements Retirement Benefits Scheme ("D A Phillips") holds two chattel mortgages created 20 February 2007 and 8 August 2007 respectively, which confers charges over certain chattel assets of the business. 5.7
Prior to their appointment, the Joint Administrators’ agents valued the assets and determined there was no equity in such. D A Phillips and Co have taken the assets to sell. Preferential Creditors
5.8
Pursuant to the director’s Statement of Affairs (’SOA"), the estimated preferential claims were £28,289.
5.9
The preferential creditors’ claims consist of employee claims for arrears of pay and holiday pay, the majority of which have been subrogated to the Department of Business, Innovation and Skills following payment to the employees by the Redundancy Payments Office ("RPO’).
5.10 The RPO submitted a preferential claim totalling £23,291 on 10 March 2011 in respect of payments made to the Company’s former employees. Additional employee preferential claims total £5,157. 5.11
The Joint Administrators are in the process of agreeing preferential creditor claims with a view to making a distribution of approximately 70 pence in the pound shortly.
RESTRUCTURING
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
Prescribed Part 512
Pursuant to Section 176A of the Act where a floating charge is created after 15 September 2003 a Prescribed Part of the Company’s net property shall be made available to unsecured non-preferential creditors.
5.13
The Prescribed Part is calculated as a percentage of net property, as follows: Net property less than £10,000:
50% of net property; or
Net property greater than £10,000:
50% up to £10,000 plus 20% thereafter to a maximum of £600,000.
5.14
The maximum value of the ring-fenced proportion of the funds, known as the "Prescribed Part", is £600,000.
5.15
Although the security was created post 15 September 2003, based on current information, there will be insufficient net realisations to enable a distribution from the Prescribed Part. Unsecured Non-Preferential Creditors
5.16
According to the SOA, unsecured non-preferential creditors total non-preferential creditors can be summarised as follows:
Trade & Expense Creditors Employees Total
£3,587,305 The unsecured
£ 31 347,231 240,074 31 587,305
5.17
These claims include those creditors who submitted claims within the Company Voluntary Arrangement.
5.18
Based upon the current information available there will be insufficient realisations to enable a distribution to the unsecured non-preferential creditors of the Company.
6.
JOINT ADMINISTRATORS’ RECEIPTS AND PAYMENTS ACCOUNT
6.1
A summary Receipts and Payments Account for the period 29 October 2010 to 30 September 2011 is shown in Appendix 2 and should be self explanatory.
7.
JOINT ADMINISTRATORS’ COSTS AND EXPENSES
7.1
The Joint Administrators’ post appointment time costs incurred in the period are as analysed at Appendix 3. For the period 29 October 2010 to 25 September 2011 the Joint Administrators’ time costs total £106,687 and remuneration of £40,120 has been drawn to date.
7.2
In addition to the above, £14,713 plus VAT and disbursements in relation to the Joint Administrators’ pre-appointment time costs have been drawn in accordance with Rule 2.67A(3) of the Insolvency Rules 1986 (as amended) ("the Rules") and approved at the creditors’ meeting held on 6 January 2011.
: i:
CORPORATE
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
7,3
Information regarding the fees of Administrators called "A Creditors’ Guide to Administrators’ Fees" can be found at the Joint Administrators’ website at wwwmcruk.com . Should you require a copy, please contact the Joint Administrators’ office.
7.4
Details of expenses incurred by the Joint Administrators’ agents have since the last report in dealing with the Administration of the Company are attached at Appendix 3.
7.5
In accordance with Rule 2.48A of the Rules, secured creditors or unsecured non-preferential creditors (with the concurrence of at least 5% in value of unsecured creditors) may make a request in writing to the Joint Administrators for further information about the remuneration or expenses set out in this progress report. This should be done within 21 days of receipt of this report, after which the Joint Administrators have 14 days to respond.
7.6
In addition to the above, any secured creditor or any unsecured non-preferential creditor (with either the support of at least 10% in value of the unsecured creditors or with the permission of the Court), may apply to the Court on the grounds that the remuneration or basis fixed for the Joint Administrators’ remuneration or the expenses incurred by the Joint Administrators are considered to be excessive. In accordance with Rule 2.109 of the Rules, this application must be made no later than 8 weeks after receipt of this progress report, where the charging of the remuneration or the incurring of expenses in question occurs
8
EC REGULATION
8.1
It is the Joint Administrators’ opinion that the EC Regulation on Insolvency Proceedings 2000 ("EC Regulation") apply and these proceedings are main proceedings as defined in Article 3 of the EC Regulation. The centre of main interest of the Company is in England.
9.
CREDITORS’ MEETING
9.1
In accordance with Paragraph 51 of Schedule Bi to the Act, a creditors’ meeting was held at 43-45 Portman Square, London, W1H 6LY on 6 January 2011.
9.2
The Joint Administrators’ Proposals were approved at the meeting by the creditors.
10.
EXTENSION OF THE ADMINISTRATION
10.1
In accordance with Paragraph 78(1)(b) of Schedule Bi to the Act, the Joint Administrators are seeking the consent of the creditors to allow the term of the Administration to be extended by a period of six months.
10.2 The extension is necessary so that the Joint Administrators may finalise the book debt position with DWL Commercial and pay the preferential dividend. 10.3
It is proposed that the request for an extension be dealt with by correspondence in accordance with Paragraph 58 of Schedule Bi to the Act and Rule 2.48 of the Rules. Therefore, please complete and sign the attached postal resolution at Appendix 4 and return it to the offices of the Joint Administrators by no later than 20 October 2011.
CORPURAYE
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
11. NEXT REPORT 11.1 The Joint Administrators are required to provide a Progress Report within one month of end of the next six months of the Administration. This report will be provided no later than 28 November 2011, or earlier if necessary. 11.2
.
If you have any queries or require any further assistance, please do not hesitate to contact Luke Norman of the Joint Administrators’ office. For and on behalf of DWL Home Improvements Limited
aul John Clark Joint Administrator The affairs, business and property of the Company are being managed by the Joint Administrators, Paul Clark and Geoffrey Bouchier, who act as agents for the Company and without personal ilabifity. Both are licensed by the Insolvency Practitioners Association.
RES
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
APPENDIX 1 Statutory Information
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
STATUTORY INFORMATION
Date of incorporation
10 August 1995
Registered number
03089959
Company director
Derek Murphy Ramsden Farm Reading Street Tenterden Kent TN3O 7H5
Company secretary
Janet Murphy
Shareholders
Janet Murphy - 100 ordinary shares & 90 preference shares Delia Hill - 100 ordinary shares & 90 preference shares Justin Murphy - 20 preference shares
Trading address
Queenborough Business Park Main Road Queensborough Kent ME11 5DY
Registered office
Current:
Formerly:
43-45 Portman Square London W1H 6LY
Queenborough Business Park Main Road Queensborough Kent ME11 5DY
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
Year Ended 30 April 2009 (Audited) £
Financial information
Turnover Cost of Sales Gross Profit Selling and distribution costs Administrative expenses Operating Loss Interest receivable Interest payable Loss on Ordinary Activity Before Tax Tax on loss on ordinary activities Loss for the financial Year
6,736,676 (5,905,983) 830,693 (803,252) (883,151) (839,429) (88,396) (927,r 725) 46,678 (881,047)
18 Month Period Ended 30 April 2008 (Audited) £ 14,842,562 (12,511,309) 2,331,253 (1,882,830) (1,540,677) (1,065,517) 21 650 (111 f 647) _ (1,174,514) 41 029 (1,170,485)
As at 30 April 2009 (Audited) £
As at 30 April 2008 (Audited) £
79 1 450
175,075
269,984 1,299,969 166,876 1,736,829
3771601 2 1 875 1 469 21 500 31 255,570
Creditors: amounts falling due within one year Net current assets
(547,049) 1,189,780
(2,903,598) 351,972
Total assets less current liabilities
1,269,230
527,047
Creditors: amounts falling due after more than one year Net liabilities
(2,914,952) (1,645,722)
(1,291,722) (764,675)
Capital and reserves Called up share capital Profit and loss account Shareholders’ deficit
2 (1,645,724) (1,645,722)
2 (764,677) (764,675)
Balance sheet
Fixed Assets Tangible fixed assets Current assets Stocks Debtors Cash at bank and in hand
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
APPENDIX 2 Joint Administrators’ Receipts and Payments Account
DWL Home Improvements Limited (In Administration) Joint Administrators’ Receipts and Payments Account
Statement of Affairs
£ 30,000.00 15,000.00 20,000.00 50,000.00 0.00 0.00 0.00 0.00 0.00 0.00
Receipts Plant & Machinery Motor Vehicles Stock Debtors Cash at Bank Cash in Hand Bank Interest Gross Rates Refund Transfer of Supervisors Fees for VAT Pension Refund Surplus from CVA
29 April 2011 to 30 September 2011
29 October 2010 to 30 September 2011
£
£
11.16 ’K
118.77
115,000.00
147,675.95 Payments Joint Supervisors fees ’K Joint Administrators’ Remuneration Joint Administrators’ Disbursements Joint Administrators’ Pre-Appointment Remuneration Accountants Fees Agents/Valuers Fees Legal Fees Stationery & Postage Storage Costs Statutory Advertising Insurance of Assets Bank Charges
Balance
I
(32,646.58)
MADE UP AS FOLLOWS Floating/main current account VAT Receivable
’K
30,000.00 15,000.00 20,000.00 50,000.00 1,662.73 1,062.37 18.20 5,399.38 24,408.70 5.80 118.77
Joint Supervisors’ fees have been included in the Receipts & Payments Account to allow the VAT to be recovered
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
APPENDIX 3 Analysis of Joint Administrators’ Time Costs Charged and Expenses Incurred
DWL HOME IMPROVEMENTS LIMITED (IN ADMINISTRATION) Analysis of Joint Administrators’ time costs for the period 29 October 2010 to 25 September 2011
Hours
Classification of Work Function
Partner
Manager
Senior
Assistant
Support
Total
Time
Av hourly
Hours
Cost
Rate
Administration and Planning Statutory matters (Meetings, Reports and Notices)
1.50
5.40
33.00
47.20
87.10
16,743.50
192.23
Strategy planning &control
3.20
10.20
16.80
3.90
34.10
10,402.00
305.04
Cashiering &accounting
2.40
219.37
2.90
14.10
17.80
37.40
8,204.50
Dealings with Directors and Management
1.60
13.70
22.90
38.20
7,017.00
183.69
Case review and Case Diary management
5.10
8.70
11.50
25.30
5,838.50
230.77
Tax Compliance/Planning
0.60
216.81
Insurance Statement of affairs
0.80
IPS set up & maintenance
0.20
0.20
6.40
4.60
11.60
2,515.00
2.00
2.20
4.20
721.00
171.67
0.30
0.30
1.40
380.00
27143
1.70
1.90
278.50
146.58
9.30
24.70
5,379.50
217.79
3.70
3.70
516.00
139.46
Investigations CDDA, reports & Communicaton
0.30
0.80
14.30
Financial review and investigations (5238/239 etc)
Realisation of Assets Freehold and Leasehold Property
0.10
3.80
12.10
4.60
20.60
5,576.50
270.70
Book debts
0.50
2.30
10.40
2.40
15.60
4,499.00
288.40
Sale of business
1.50
0.30
6.30
0.30
8.40
2,498.00
297.38
Plant, Machinery, Fixtures and Motor Vehicles
1.20
3.80
4.20
9.20
2,113.00
229.67
Stock and Work In Progress
0.10
1.30
1.40
399.50
285.36
Other Intangible Assets
0.80
0.80
292.00
365.00
1.50
1.50
150.00
100.00
0.60
0.70
82.00
117.14
3.80
1,000.50
263.29
294.92
Pre-Appointment Tax Reclaims Other Tangible Assets
0.10
Trading Trading - Retention of Title, Claims handling
110
270
4.60
50.70
0.30
56.10
16,545.00
0.80
15.90
83.90
100.60
12,845.00
127.68
3.30
3.30
6.70
2,236.00
333.73
0.60
213.00
355.00
0.60
64.00
106.67
0.50
177.50
355.00
Creditors Communications with Creditors/Employees
0.50
Non Pref Creditors/Employee claims handling Pref claims adjudication and distribution
0.10
Secured Creditors
0.60
Non Pref Creditor claims adjudication and dist’n
0.60
Case Specific Matters 0.50
Total Hours Total Fees Claimed ()
10.10 51 289.50
47.001 18,290.5
Category 2 Disbursements: There are no Category 2 disbursements for this case to date.
215.90 59,452.5
223.50
0.201
23,648.00
6.00
496.70
214.79 106,686.5
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
EXPENSES INCURRED
Company
Role
Downs Solicitors LLP
Review the sale of business contract and other ad hoc legal matters. Report mailing costs Storage costs
Accurate Mailing Total Data Management
Amount Incurred & Paid £ (excl., of VAT) 935 286 1,076
DWL Home Improvements Limited (In Administration) Progress Report to Creditors 30 September 2011
APPENDIX 4 Postal Resolution
Form 2.25B Rule 2.48
Notice of conduct of business by correspondence Name of Company
Company number
DWL Home Improvements Limited
03089959
In the High Court of Justice Chancery Division Companies Court
Court case number
8424 of 2010 (full _name _of_court)
(a) Insert full name(s) and address(es) of administrator(s)
(b) Insert full name and address of registered office of the company
(c) Insert number of resolutions enclosed
(d) Insert address to which form is to be delivered (e) Insert closing date
Repeat as necessary for the number of resolutions attached
Notice is hereby given by (a) Paul John Clark and Geoffrey Wayne Bouchier of 43-45 Portman Square, London, W1H 6LY,
To the creditors of (b) DWL Home Improvements Limited of 43-45 Portman Square, London, W1H 6LY,
That, pursuant to Paragraph 58 of Schedule Bi to the Insolvency Act 1986, enclosed is (c) one resolution for your consideration. Please indicate below whether you are in favour or against the resolution. This form must be received at (d) 43-45 Portman Square, London, W1H 6LY, By 12.00 hours on (e) 20 October 2011 in order to be counted. It must be accompanied by details in writing of your claim. Failure to do so will lead to your vote being disregarded. (1)
"That the term of the Administration be extended by a period of six months" I am *in Favour/Against
TO BE COMPLETED BY CREDITOR WHEN RETURNING FORM Name of creditor:
Signature of creditor: (if signing on behalf of creditor, state capacity e.g. director/solicitor)
