joint liquidators’ seventh annual report - pwc uk · road fund licenses 301,405.00 - - vat monies...

Joint Liquidators’seventh annualreport

Local Contract Hireand Leasing Limited(in liquidation)

For the period from 18 March 2016 to 17 March2017

www.pwc.co.uk/lch

24 May 2017

Our ref: RC/SA

Joint Liquidators’ seventh annual report

Local Contract Hire and Leasing Limited (in liquidation) 2

To all known members and creditors

24 May 2017

Dear Sir/Madam

Local Contract Hire and Leasing Limited – in creditors’ voluntary liquidation (the Company)Formerly trading from: 15 – 17 Walter Street, Leeds, LS4 2BB

This is our seventh annual report to members and all known creditors in the above liquidation for the periodfrom 18 March 2016 to 17 March 2017.

If you have any queries in connection with this report, please contact Sandra Andrews on 0113 720 4926.

Yours faithfully

M D A LoftusJoint liquidator

Mark David Arthur Loftus and Toby Scott Underwood are licensed in the United Kingdom to act as insolvency practitioners by theInstitute of Chartered Accountants in England and Wales.

The joint liquidators are bound by the Insolvency Code of Ethics which can be found at:https://www.gov.uk/government/publications/insolvency-practitioner-code-of-ethics.

The joint liquidators are Data Controllers of personal data as defined by the Data Protection Act 1998. PricewaterhouseCoopers LLP willact as Data Processor on their instructions. Personal data will be kept secure and processed only for matters relating to the liquidation.



Definitions used in this report

Definition used Term

the Company Local Contract Hire and Leasing Limited

the Liquidators

we

our

Mark David Arthur Loftus

Stephen Andrew Ellis (to 8 March 2017)

and

Toby Scott Underwood (from 8 March 2017)

the prior Administrators

Mark David Arthur Loftus

and

Stephen Andrew Ellis

the lenders Various hire purchase lenders

Goldacre Goldacre (Offices) Limited v. Nortel Networks UK Limited – in administration

the Rules Insolvency Rules 1986

the Act Insolvency Act 1986

ICAEW Institute of Chartered Accountants in England and Wales

Table of contents

1. Introduction 5

1.1. Why we’re sending you this report 5

1.2. Change of liquidator 5

1.3. Estimated dividend prospects 5

1.4. Dividend to unsecured creditors 5

2. Progress made during the period 6

2.1. Assets realisations 6

2.2. Assets not specifically pledged to a creditor(s) 6

2.3. Motor vehicle account 6

2.4. Statutory and compliance 7

2.4.1. Tax and VAT 7

2.4.2. Annual report 7

2.4.3. Other statutory and compliance matters 7

3. Outcome for creditors 8

3.1. Secured creditors 8

3.2. Preferential creditors (mainly employees) 8

3.3. Unsecured creditors 8

4. Liquidators’ fees and other financial information 9

4.1. Our fees 9

4.2. Our disbursements 9

4.3. Creditors’ rights 9

4.4. Receipts and payments account 9

4.5. Statement of expenses 9

5. Meetings of members and creditors 10

Appendix A. - Statutory and other information 11

Appendix B. - Receipts and payments account for the period from 18 March 2016 to 17 March 2017 12

Appendix C. - Details of our remuneration and disbursements and other professional costs 14

Appendix D. - Statement of expenses for the period from 18 March 2016 to 17 March 2017 21



1. Introduction

1.1. Why we’re sending you this report

This is our seventh annual report to members and creditors. It will help if you read this alongside our previousprogress reports.

This report provides a summary of:

The steps taken during the seventh year of the liquidation; Outstanding matters; and A provisional estimate of the outcome of the liquidation for unsecured creditors.

In Section 2 we provide more detailed information on what we’ve been doing during the period covered by thisreport and in Section 3 we provide information as to what the outcome for creditors might be.

By law, we have to give you certain statutory information, this is included in Appendix A.

1.2. Change of liquidator

Stephen Ellis, one of the previous joint liquidators, has left the firm. To ensure that outstanding issues in theliquidation continue to be pursued, an application was made to the Court to remove him and appoint TobyUnderwood as liquidator. Toby Underwood is licensed in the United Kingdom to act as an insolvencypractitioner by the ICAEW.

The application was granted and so Toby Underwood replaced Stephen Ellis as joint administrator with effectfrom 8 March 2017.

1.3. Estimated dividend prospects

% Recovery Forecast Timing

For preferential creditors:i.e. former employees (for unpaid wages up to £800 andholiday pay only) and unpaid pension contributions incertain circumstances:

100% Dividend paid

For unsecured creditors:i.e. all other creditors who are neither secured norpreferential:

This report: 2-4%Last report: 4-7 %

8 months

Please note this guidance on dividend prospects is only an indication. You shouldn’t use it as the main basis ofany bad debt provision that you may need to make.

1.4. Dividend to unsecured creditors

We have issued a notice of intended dividend to unsecured creditors. The last date for proving is 30 September2017. Creditors who have not submitted their claims should do so now. Claims received after 30 September2017 may be excluded from any dividend. A dividend will be declared by 31 January 2018.



2. Progress made during the period

2.1. Assets realisations

We’ve realised the Company’s assets as follows:-

Actualrealisations

from 18 March2010 to 17

March 2016£

Actualrealisations

from 18 March2016 to 17

March 2017£

Estimated torealise per the

statement ofaffairs*

£

Assets specifically pledged

No specifically pledged assets were realised in the period - - -

- - -

Assets not specifically pledged to a creditor(s)

Administration surplus 1,728,875.33 - -Book debts 209,483.61 - -Freehold property 335,250.00 - -Distributions 56,775.27 - -Interest 65,323.39 - -IT licenses 600.00 - -Post-appointment trading sales 103,360.82 - -Refunds/rates & sundry 10,296.04 - -Legal settlement 1,300,000.00 - -Road fund licenses 301,405.00 - -VAT monies from Yorkshire Bank 94,993.66 - -Contribution to wages paid in the Administration 3,811.52 - -

4,210,174.64 - -

* No statement of affairs provided in the liquidation since the details were provided in the administration.

2.2. Assets not specifically pledged to a creditor(s)

In our last report we stated that that, of the sum of £36,000 held by our solicitors, £16,000 was due to a lenderand the remaining £20,000 was due to the Company. A formal agreement to this effect has been prepared andwe are awaiting the lender’s signature. Upon receipt of this, the £20,000 will be paid over to the Company.

2.3. Motor vehicle account

As detailed in previous reports, an agreement was put in place between the Company, the formerAdministrators and the Lenders regarding the repatriation of all vehicles on hire purchase. The agreementprovided for sufficient funding to be made available to the previous Administration to cover the costs of thisprocess so the Administration did not incur costs associated with the recovery of third party assets.



The Lenders took over the vehicle recovery process in May 2009, however, the Liquidators were unable toconclude the reconciliation of the Motor Vehicle account until the outcome of the Goldacre Court case wasknown (details of this can be found in our previous reports). Following this, there were a number of complexmatters to be worked through in relation to finalising the reconciliation.

We can now confirm that the reconciliation of the Motor Vehicle account has concluded and the reallocations inrelation to this are shown in Appendix B.

However, following the conclusion of the reconciliation, we have discovered a potential liability in relation torental expenses that were incurred in the trading period of the Administration. The potential liability arisesfrom cheques that were issued to landlords but the cheques have not been cashed or where we do not hold anylandlord contact information and therefore the expense remains unpaid.

We are in the process of sending a final communication to landlords (where contact details are held) where webelieve rental expenses may be unpaid. Any landlord who believes they have unpaid rent for the Administrationtrading period should contact the Liquidators immediately. Please note this does not relate to any unsecuredclaim against the Company and solely relates to rental expenses incurred in the trading period of theAdministration.

The deadline for responses in relation to this matter is 21 June 2017 after which point we will not accept anyliability. Therefore, this will not affect the timing of the unsecured dividend to creditors but does requireconclusion before we can return the surplus funds in the Motor Vehicle account to the Lenders.

2.4. Statutory and compliance

2.4.1. Tax and VAT

As stated in our previous report, we completed and submitted final corporation tax returns to HM Revenue &Customs and asked for clearance to close the liquidation. This has now been received.

We have prepared and submitted Forms VAT 426 in order to reclaim VAT paid in the liquidation.

2.4.2. Annual report

We completed the annual report which was circulated to the Company’s members and creditors. We also heldmeetings of the members and creditors as required by Section 105 of the Act.

2.4.3. Other statutory and compliance matters

We completed and submitted statutory returns to the Registrar of Companies on a six monthly basis.



3. Outcome for creditors

3.1. Secured creditors

During the prior administration, Yorkshire Bank Invoice Finance and The Royal Bank of Scotland were paid infull. The majority of the Company’s indebtedness to Barclays Bank plc was discharged during theadministration with the remaining £3,375.18 paid in the liquidation. The sum of £25,903.33 was paid toCraytex Limited in respect of its secured claim against the Company.

3.2. Preferential creditors (mainly employees)

There are no preferential creditors in the Liquidation

3.3. Unsecured creditors

The prescribed part is a fund that has to be made available for unsecured creditors. It’s paid out of “netproperty”. Net property is floating charge realisations after costs, and after paying - or setting aside enough topay - preferential creditors in full. But it only has to be made available where the floating charge was created onor after 15 September 2003.

In this case the prescribed part doesn’t apply because the floating charges registered against the Company werecreated before 15 September 2003.

We think a dividend of between 2% to 4% will be paid to the unsecured creditors based on what we knowcurrently.

We’ve calculated this on the estimate of the unsecured creditors included in the statement of affairs provided tothe administrators. The amount of the dividend will depend on the final level of submitted claims, futurerealisations and liquidation costs.

A summary of claims is shown below:

Description Number of claimsValue ofclaims (£)

Admitted claims 838 7,723,068

Rejected claims 71 669,912

Awaited claims 589 39,439,875

Held claims 118 49,695,984

We’re now able to tell you there are now enough funds available to give notice of our intention to declare andpay a first and final dividend. The formal notice of our intention to declare this dividend is uploaded to thewebsite and can be viewed at www.pwc.co.uk/lch. The final date for proving is 30 September 2017; please notethat any claims received after this date may be excluded from the dividend. Any creditors who have yet tosubmit a claim should now do so.



4. Liquidators’ fees and other financialinformation

4.1. Our fees

At the meeting of creditors held on 3 June 2010, creditors passed a resolution enabling us to draw fees byreference to the time properly given by us and our staff in dealing with the liquidation. We’ve drawn fees in linewith this resolution.

From 18 March 2016 to 17 March 2017, we have incurred time costs of £75,270.25 for 276.10 hours work, whichworks out at an average hourly rate of £272.62. The average hourly rate in our last progress report was £210.

We include details of the time costs incurred from 18 March 2016 to 17 March 2017, by work type, at AppendixC.

Of the approved time costs of £872,466.17 we have drawn £605,662.01 and will draw a further £218,414 in duecourse. This represents the balance of our time costs to 17 March 2017 less the time costs incurred in respect ofthe Motor Vehicle Account. Further details are shown on page 20.

Further details of our fees are included in Appendix C, together with details of work that we would normally dobut has been subcontracted in the period.

4.2. Our disbursements

We’ve incurred disbursements of £152.05 during the period from 18 March 2016 to 17 March 2017 and we’vedrawn £91.49 of these. Further details are provided in Appendix C.

4.3. Creditors’ rights

Creditors have the right to request further information about the liquidators’ fees and expenses. Any requestmust be in writing. Creditors can also challenge the liquidators’ fees and expenses as set out in Rule 4.131 of theRules. This information can also be found in the guide to fees at:

http://www.icaew.com/~/media/corporate/files/technical/insolvency/creditors%20guides/creditors%20guide%20to%20liquidators%20fees%20england%20and%20wales.ashx

You can ask for a copy free of charge by calling Sandra Andrews on 0113 289 4926.

4.4. Receipts and payments account

A receipts and payments account for the period from 18 March 2016 to 17 March 2017 is provided in AppendixB.

4.5. Statement of expenses

A statement of expenses for the period from 18 March 2016 to 17 March 2017 is provided in Appendix D.



5. Meetings of members and creditors

We’re required to hold annual meetings of members and creditors. Attached to this report is a notice of thesemeetings and a proxy form.

The purpose of the meetings is to present this report. No formal resolutions will be considered.

If you require further explanation of any aspects of this report, but don’t wish to attend the meeting, pleasetelephone or write to Sandra Andrews.

If you want to attend the meeting, please telephone Sandra Andrews so that arrangements can be made.

We must have regard to the convenience of creditors when convening any general meeting. From experience,creditors don’t often attend such meetings and so this meeting is being convened at the offices ofPricewaterhouseCoopers LLP, Central Square, 29 Wellington Street, Leeds, LS1 4DL in order to reduce costs. Ifyou want to attend the meeting but think the venue is inconvenient, it can be reconvened at an agreed venue ifyou contact us within the next 7 days. This is to ensure all other creditors can be told about the revisedarrangements.

If you wish to propose a resolution the following paragraphs will apply:

Individual creditors (i.e. not limited companies):

You can vote by simply attending the meeting, as long as a proof of debt has been lodged at the address stated inthe notice of the meeting before 12.00 noon on the working day before the meeting. If you don’t attend themeeting you may complete a proxy form to nominate:

someone else to attend and vote for you; or the chair to vote on your behalf.

The proxy form must be signed by you.

Limited companies:

A company is not physically able to attend meetings, so it must appoint someone to attend on its behalf by: completing and returning a proxy form (even if you’re a director); or producing at the meeting a sealed or certified copy of a board resolution authorising an

individual to represent that company at the meeting.

A company can also complete and return a proxy form to nominate: someone else to attend and vote as its representative; or the chair to vote as its representative.

The proxy form must be signed by someone authorised to sign on behalf of that company and the nature of thatperson's authority should be stated.

A proof of debt must also be lodged at the address stated in the notice of the meeting before 12.00 noon on theworking day before the meeting.

Important information if you are submitting a proxy:

A proxy holder can vote either on your instruction or at their discretion as indicated on the completed proxyform.

The proxy form must be lodged at the address stated in the notice of the meeting before 12.00 noon on theworking day before the meeting.



Appendix A. - Statutory and otherinformation

Name of company: Local Contract Hire and Leasing Limited

Registered number: 02128011

Registered office: Central Square, 29 Wellington Street, Leeds, LS1 4DL

Former company names: None

Trading names: Local Contract Hire and Leasing Limited and 1 Car 1

Trading address: 15 – 17 Walter Street, Leeds, LS4 2BB

Names of liquidators and theiraddress(es):

Mark David Arthur Loftus of PricewaterhouseCoopers LLP, TwoHumber Quays, Wellington Street West, Hull HU1 2BN and

Toby Scott Underwood of PricewaterhouseCoopers LLP, CentralSquare, 29 Wellington Street, Leeds, LS1 4DL

Date of liquidators appointment: Mark David Arthur Loftus - 18 March 2010

Toby Scott Underwood – 8 March 2017

Details of change in liquidators: Stephen Andrew Ellis was removed as joint liquidator with effectfrom 8 March 2017 following a court application. Toby ScottUnderwood was appointed by the court as joint liquidator on thesame day

Details of prior administration: On 18 March 2009 Mark David Arthur Loftus and Stephen AndrewEllis of PwC were appointed Joint Administrators of the Company.The administration was concluded on 18 March 2010 being the datethe Company moved into liquidation

Estimated dividend for preferentialcreditors:

A dividend of 100p in the £ was paid on 8 November 2010

Estimated dividend for unsecuredcreditors:

2-4p in the £

Estimated values of the Company’snet property and prescribed part:

Not applicable

Whether and why the Liquidatorsintend to apply to court under Section176A(5) IA86:

No



Appendix B. - Receipts and paymentsaccount for the period from 18 March2016 to 17 March 2017

18 March

2010 to 17

March 2016

18 March

2016 to 17

March 2017

Total 18

March 2010

to 17 March

2017

(£) (£) (£)

Assets subject to fixed charges

Receipts

None - - -

- - -

Assets subject to floating charge

Receipts

Administration surplus** 1,317,178.18 149,593.43 1,466,771.61

Factored debts 1,098,768.16 - 1,098,768.16

Legal settlement 1,300,000.00 - 1,300,000.00

Freehold property 335,250.00 - 335,250.00

Book debts 209,483.61 - 209,483.61

Factored debts - trading 403,888.17 - 403,888.17

Distributions received 56,775.27 - 56,775.27

Fixtures & fittings 213.00 - 213.00

Third party funds 30.00 - 30.00

Rates refunds 5,484.82 - 5,484.82

IT licenses 600.00 - 600.00

Petitioning costs 1,916.00 - 1,916.00

Interest received 54,650.87 - 54,650.87

Sundry refunds (telephone/fax) 490.60 - 490.60

Road fund licences 301,405.00 (180,000.00) 121,405.00

Pre appointment VAT 57,925.85 - 57,925.85

VAT monies from YB - 94,993.66 94,993.66

5,144,059.53 64,587.09 5,208,646.62

Payments

Factored debts 1,098,768.16 - 1,098,768.16

Factored debts trading (net of VAT) 395,294.80 - 395,294.80

Office holders' fees 515,662.01 90,000.00 605,662.01

Office holders' expenses 4,290.35 30,279.04 34,569.39

Archive costs 54,553.24 23,518.80 78,072.04

Agents' fees 11,265.53 - 11,265.53

Agents' disbursements 1,428.14 - 1,428.14

Professional fees 700.00 - 700.00

Heat, light and power 13,658.43 - 13,658.43

Water rates 4,151.03 - 4,151.03

Postage & stationery & printing 4,583.47 - 4,583.47

Legal fees and disbursements 199,385.90 - 199,385.90

Telephone & fax 305.84 - 305.84

Rates 259.11 - 259.11

DTI cheque fees/ISA costs 110.00 105.50 215.50

Tax deducted on interest 9,011.44 - 9,011.44

Statutory advertising 73.62 - 73.62

Bank charges 572.00 - 572.00

Corporation tax 5,865.71 1,024.74 6,890.45

2,319,938.78 144,928.08 2,464,866.86

Net balance 2,824,120.75 (80,340.99) 2,743,779.76

Net VAT (receivable) / payable 6,516.31 (28,759.57) (22,243.26)

Secured creditors (29,278.51) - (29,278.51)

Preferential creditors paid 100p in £ on 8

November 2010 (209,670.75)

-(209,670.75)

- Balance in hand* 2,591,687.80 (109,100.56) 2,482,587.24

*Removed from interest bearing account in order to conclude the tax position

** Adjustments following reconciliation of motor vehicle account



Motor vehicle account

18 March

2010 to 17

March 2016

18 March

2016 to 17

March 2017

Total 18

March 2010

to 17 March

2017

(£) (£) (£)

Receipts

Release of funds from administrators** 411,697.15 (149,593.43) 262,103.72

Post appointment trading sales 103,360.82 - 103,360.82

VAT monies from YB** 94,993.66 (94,993.66) -

Contribution to wages paid in the administration 3,811.52 - 3,811.52

Interest received 10,672.42 - 10,672.42

Rates refunds 2,191.62 - 2,191.62

Road fund licences - 180,000.00 180,000.00

626,727.19 (64,587.09) 562,140.10

Payments

Insurance 23,820.93 - 23,820.93

Legal settlement 9,741.00 - 9,741.00

Rent 17,556.63 - 17,556.63

Heat, Light and Power 5,003.24 - 5,003.24

Employee costs (administration) 2,406.92 - 2,406.92

Rates 896.57 - 896.57

Telephone & Fax 905.97 - 905.97

Repairs & Maintenance 652.72 - 652.72

Water Rates 387.61 - 387.61

Storage costs 149.80 - 149.80

Legal fees and disbursements 56.70 - 56.70

Bank charges 30.00 - 30.00

Funds returned to lenders - - -

61,608.09 - 61,608.09

Balance in hand* 565,119.10 (64,587.09) 500,532.01

*Removed from interest bearing account in order to conclude the tax position

** Adjustments following reconciliation of motor vehicle account



Appendix C. - Details of ourremuneration and disbursements andother professional costs

Background

This section sets out the process that was established for setting and monitoring the Liquidators’ remuneration.

The basis of our fees and certain disbursements was agreed at the meeting of creditors on 3 June 2010.

The basis of our fees is by reference to time properly given. Details of the amount we have drawn can be foundin Section 4.

Liquidators’ charging policy

The time charged to the liquidation is by reference to the time properly given by our staff and us in attending tomatters arising.

It is our policy to delegate tasks in the liquidation to appropriate members of staff, considering their level ofexperience and any requisite specialist knowledge needed and they are supervised accordingly to maximise thecost effectiveness of the work performed.

Our junior people have done the routine work in the liquidation to keep the costs down. But we and our seniorstaff have supervised them and we have dealt with any complex or significant matters ourselves.

Matters of particular complexity or significance requiring more exceptional responsibility are undertaken bysenior staff or the Liquidators themselves.

Details of subcontracted work

No work has been, or will be, subcontracted.

Narrative of key areas of work carried out for the period from 18 March 2016 to 17 March2017

There remain a number of distinct work streams within the work we have done. It should be noted thatindividuals will have worked in more than one area. The activities of these work streams are summarised below:

Area of work Work undertaken

Why the work was

necessary

What, if any, financial

benefit the work

provided to creditors

OR whether it was

required by statute

Strategy & planning Team briefings on case

progression and

resolution of

outstanding matters

Ensures matters are

progressed efficiently

and cost effectively

Financial benefit for the

creditors



Joint Liquidators’

oversight and review of

case progression and

strategy options

Dealing with general

incoming

correspondence

Managing case diary /

events.

Assets Liaising with h.p

creditors to confirm the

correct asset allocation

Liaising with solicitors

re monies held

Dealing with formal

agreement re allocation

of funds

To achieve the best

result for creditors

Financial benefit for the

liquidation

Creditors Agreement of creditor

claims

Dealing with telephone

calls

Dealing with emails

Updating creditor

information

To ensure creditor

claims are admitted

correctly for dividend

purposes

Facilitates the payment

of a dividend to

creditors

Accounting & treasury Processing receipts and

payments

Journals

Bank reconciliations

Budgeting

Billing

To ensure management

of the bank account is

up to date

Benefit of proper

stewardship and

accounting of case funds

Statutory & compliance Six monthly case

reviews

Annual reporting

Meetings of members

and creditors

Reconciliation of motor

vehicle account

Completion and filing of

statutory returns

Filing

Completion of case

diary events

To comply with

statutory obligations

Required by statute or

regulation



Calculation of

outstanding

disbursements

Tax & VAT Obtaining tax clearance

VAT reconciliation and

submission of form

VAT426

To comply with

statutory obligations

Required by statute

To minimise tax

liabilities and regain

VAT refunds

Our future work

We still need to do the following work to conclude the liquidation

Area of work Work we need to doEstimated cost £

Whether or not the

work will provide a

financial benefit tocreditors

Strategy & planning Team briefings on case

progression and

resolution of

outstanding matters

Joint Liquidators’

oversight and review of

case progression and

strategy options

Dealing with general

incoming

correspondence

Managing case diary /

events.

3,000 Ensures matters are

progressed efficiently

and cost effectively

Statutory & compliance Preparing, drafting and

issuing annual progress

report

Completing statutory

six monthly case

reviews

7,000 No financial benefit to

creditors. Complyingwith statutory duty

Accounting & treasury Processing receipts and

payments

Journals

Bank reconciliations

Bank account closure

3,000 Benefit of proper

stewardship and

accounting of casefunds

Creditors Agreement of creditor

claims

Calculation of dividend

Distribution to

unsecured and creditors

81,606 Facilitates the payment

of a dividend tocreditors



Creditor enquiries

Tax and VAT Submit VAT returns 1,000 No financial benefit to

creditors. Complying

with statutory duty

Closure Clearances

Final meetings and

report

5,000 No financial benefit to

creditors. Complyingwith statutory duty.



Hourly rates

In common with all professional firms, scale rates increase from time to time over the period of theadministration of each insolvency case. PricewaterhouseCoopers LLP, or any successor firm, reserves the rightto change the rates and grade structures. During the period covered by this report the charge out rates wereincreased on 1 July 2016.

Set out below are the relevant maximum charge-out rates per hour worked for the grades of staff actuallyinvolved on this assignment. All staff who work on this assignment (including cashiers, support and secretarialstaff) charge time directly to the assignment and are included within any analysis of time charged. Time ischarged by reference to actual work carried out on the assignment in six minute units. The minimum timecharged is three minutes (i.e. 0.5 units). There was no allocation of any general costs or overhead costs.

Specialist departments with our firm, such Tax, VAT, Property and Pensions were also used where expert advicewas required. Such specialist rates do vary but the figures below provide an indication of the maximum rate perhour:

Grade Maximum rate perhour

(from 18 March 2016 to30 June 2016)

(£)

Maximum rate perhour

(from 1 July 2016 to 17March 2017)

(£)

Specialistmaximum rate

per hour

(£)

Partner 590 600 1,250

Director 490 500 1,150

Senior Manager 425 435 970

Manager 340 345 700

Senior Associate 255 260 515

Associate 165 170 255

Support staff 185 89 150

Our relationships

We have had no business or personal relationships with the parties who approve our fees or who provideservices to the liquidation where the relationship could give rise to a conflict of interest.

Payments to associates

We have made no payments to associates.

Disbursements for services provided by our firm (Category 2 disbursements)

Our firm’s expenses policy allows for all properly incurred expenses to be recharged to the case. Disbursementswere charged to the assignment as follows:

Photocopying At 5 pence per sheet copied, only charged for circulars to creditors and other bulk copying.

Mileage At a maximum of 67 pence per mile (up to 2,000cc) or 80 pence per mile (over 2,000cc).



Our disbursements in the period from 18 March 2016 to 17 March 2017

We have incurred the following disbursements (excluding VAT) in the period from 18 March 2016 to 17 March2017.

Category 1: £ Category 2: £

Postage 44.76 Mileage 107.29

Total: 44.76 Total: 107.29

The statement of expenses at Section 6 show what we have drawn in total in relation to our disbursements.

Other professional advisors we’ve used

A summary of legal and other professional firms and subcontractors instructed in the period from 18 March2016 to 17 March 2017 is below:

Name of firm /organisation

Service provided Reason selected Basis of feesAmount paid inperiod (£)

DLA Piper LLP Legal advice Expertise Time costs Nil

Lupton Fawcett LLP Legal advice Expertise Time costs Nil

Eddisons CommercialLimited

Valuation & disposaladvice

Expertise Time costs Nil

Jardine Lloyd Thompson Insurance Industry knowledge Risk based premium Nil

C W Harrison & Sons Archive storage Industry knowledge Industry rates 23,519

We are currently storing several thousand boxes containing the Company’s accounting records. We arerequired to retain such records for 6 years from the date of insolvency. This date has now passed but we areretaining the records until the claims agreement process is complete.

Our choice of professional firms and subcontractors was based on the advisers’ experience, the complexity andtype of work and the basis of the fee arrangement. We’re satisfied that the fees charged are reasonable.



Analysis of our time costs by grade and work area from 18 March 2016 to 17 March 2017

*This includes time costs incurred in the period of £19,746 which relate to the reconciliation of the Motor Vehicle Account. Please note that during the period from 18 March2010 to 17 March 2016 we incurred time costs of £28,644 relating to the Motor Vehicle Account. Fees charged in relation to these time costs will be recovered from funds held inthe Motor Vehicle Account following agreement with the lenders.

Aspect of assignment Partner Director

Senior

Manager Manager

Senior

Associate Associate Secretarial Total hours Time cost

Average hourly

rate

£ £

1 Strategy & Planning - 0.80 1.35 5.05 3.20 1.50 2.20 14.10 3,917.25 277.82

2 Assets - - - 1.25 9.35 - - 10.60 2,838.75 267.81

3 Creditors - - 23.80 16.35 51.10 2.25 - 93.50 27,793.90 297.26

4 Accounting and treasury - 0.20 0.05 2.50 6.50 6.85 0.30 16.40 3,654.70 222.85

5 Statutory and compliance* - 3.50 16.10 6.30 90.95 0.80 4.17 121.82 32,722.65 268.61

6 Tax & VAT - - - 4.30 8.20 3.50 - 16.00 4,243.00 265.19

7 Closure procedures - 0.20 - - - - - 0.20 100.00 500.00

Total for the period - 4.70 41.30 35.75 169.30 14.90 6.67 272.62 75,270.25 276.10

Brought forward as at 17 Mar 2016 3,791.37 797,195.92

Total 4,063.99 872,466.17



Appendix D. - Statement of expensesfor the period from 18 March 2016 to 17March 2017

The Rules requires this progress report to include a statement of expenses incurred by the Liquidators duringthe period of the report, irrespective of whether payment has been made or not. This relates to all costsincurred, and not just the Liquidators’ disbursements. Such a summary of expenses is found below:

Unpaidexpenses asat 17 March

2016

Expensesincurred in

the period

Expensespaid in the

period

Expensesunpaid as at

17 March2017

£ £ £ £

Office holders’ fees 281,533.91 75,490.75 90,000.00 267,024.66

Office holders’ expenses 30,187.55 152.05 30,279.04 60.56

Archive costs 7,839.60 15,679.20 23,518.80 -

Agents' fees - - - -

Agents' disbursements - - - -

Professional fees - - - -

Heat, light & power - - - -

Water rates - - - -

Postage, stationery & printing - - - -

Legal fees & disbursements - - - -

Telephone & fax - - - -

Rates - - - -

DTI cheque fees/ISA costs - 105.50 105.50 -

Tax deducted on interest - - - -

Statutory advertising - - - -

Bank charges - - - -

Corporation tax - 1,024.74 1,024.74 -

Total 319,561.06 92,452.24 144,928.08 267,085.22

joint liquidators’ seventh annual report - pwc uk · road fund licenses 301,405.00 - - vat monies...

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