IPA exclusive industry update from Insolvency Insider
IPA Insolvency Practitioner newsletter, October 2023
A specially curated selection of the top stories for IPA members from Insolvency Insider Editor, Henry Louis. More information on all the stories and the link to subscribe to the newsletter is here.
Recent insolvencies
KNP Logistics Group Limited and certain of its subsidiaries, a Kettering-based logistics and training firm, entered administration on 25 September 2023, after suffering a major ransomware attack in June which affected key systems, processes and financial information. Rajnesh Mittal and Philip Armstrong of FRP Advisory were appointed joint administrators, and said that approximately 730 employees will be made redundant, while approximately 170 employees of Nelson Distribution Limited will be transferred to purchaser Kinaxia. Leumi Abl Limited and Lloyds Bank have registered charges against the company.
Victoria Plum Limited, one of the UK’s largest online bathroom retailers, entered administration on 29 September 2023, reportedly having suffered from a slowdown in consumer spending and rising freight costs. Immediately on their appointment as joint administrators, Samuel Woodward and Timothy Vance of EY completed a sale of the business and certain assets to AHK Designs, the owner of beds.co.uk. Endless LLP as Security Trustee and Secure Trust Bank PLC have registered charges against the company.
Formula K International Limited, a family-owned, North Wales-based supplier of go-karts and leisure vehicles for the amusement industry, entered administration on 7 September 2023 after trading successfully for more than 25 years. Joint administrators Paul Stanley and Jason Greenhalgh of Begbies Traynor said Covid lockdowns had a major impact on cashflow, and that more recent supply chain issues and delays to shipments of materials have left the company unable to fulfil its orders for the first time in history, despite demand. National Westminster Bank PLC has two registered charges against the company.
Insights
Juliet Schalker and Jonathan Holgate of Debenhams Ottaway Solicitors summarise an English court decision that a foreign judgment that is no longer enforceable in its local jurisdiction is nevertheless capable of being enforced in England, potentially paving the way for forum shopping by creditors looking to gain an advantage.
Marieta van Straaten and Chantelle Tang of Kingsley Napley consider the impact of the Supreme Court’s recent decision in PACCAR on insolvency practitioners, concluding that payments received under completed LFAs are very much at risk.
David Steinberg and Joanna Charter of Stevens & Bolton summarise a recent case which has been heralded as a triumph for the prioritisation of creditors’ interests over those of debtors when it comes to the enforcement of security and the appointment of administrators.
Please note that guest content does not necessarily represent the views of the IPA.