IPA exclusive industry update from Insolvency Insider
IPA Insolvency Practitioner newsletter, April 2023
Contents
- Paul Smith, CEO
- Samantha Keen, President
- HMRC updates
- FCA warnings: Unauthorised websites
- SIP 3.3 consultation
- A fantastic day at the 2023 Annual Conference – thanks to all delegates, speakers and sponsors!
- Latest Developments in Personal Insolvency: New SIP 3.1 and What this Means for You (CPD: 1.5h)
- 2023 Roadshow Series schedule released – reserve your place now! (CPD: 3h/4h)
- Bookings are open for the 15th Personal Insolvency Conference (CPD: 6h)
- IPA examinations update
- Discounted meeting facilities from Office Space in Town (member login required to view)
- Save money on your airport parking with APH! (Member login required to view)
- Need new IT products? Claim exclusive IPA membership offers from Dell
- CPI training with BPP – special offer for IPA members (member login required to view)
- Make savings on essential CPD with exclusive discounts on training from the IPA and our partners
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
- Scotts Limited, a privately-owned mail order and eCommerce business operating within the homewares, gifts, health and garden sectors and trades under the names ‘Scotts & Co’ and ‘Scotts of Stow‘, entered administration on 9 March. After operating successfully for 30 years, the company faced difficulties due to, among other factors, a sevenfold increase in freight rates, a 38% increase in print and paper costs and a reduction in trade due to the cost-of-living crisis. Upon their appointment, Joint Administrators Mark Supperstone and Ben Woodthorpe of Resolve completed a pre-pack sale of the business and its assets to WoolOvers Group, saving all 135 jobs. Arbuthnot Commercial Asset Based Lending Limited has a registered charge against the company.
- Bromford Industries Limited and its subsidiary Accrofab Limited, Leicester-based suppliers to the aerospace, defence and power generation industries, entered administration on 9 March. Joint Administrators Ryan Grant and Chris Pole of Interpath Advisory cited difficulties including rising raw material and energy costs, supply chain disruptions, and the wider impact of the pandemic as the drivers behind the companies’ administrations. While the facilities at Derby and Alcester were continuing to trade well, operational issues at the Leicester facility further exacerbated the liquidity challenges faced by the companies. The Joint Administrators have retained all 309 staff to enable trade to continue. Stellus Capital Investment Corporation and Citizens Bank, N.A. have registered charges against both companies, while Lucid Trustee Services Limited and National Westminster Bank PLC have a registered charge against only Bromford.
- Nexus Independent Financial Advisers Limited and Nexus Investment Managers Limited entered administration on 13 February, after the FCA imposed a number of restrictions on the Portsmouth-based finance firms, preventing them from carrying out any regulated activities, including adding new customers, and restricting access to their assets. The FCA said that it had very serious concerns that the firms’ sole director may have withdrawn client funds totaling over £2 million for his own personal use. Nicola Layland and Carl Faulds of Leondard Curtis were appointed Joint Administrators and are working on conducting a sale. The Trustees of the Nelssington Pension Scheme have a registered charge against Nexus Independent Financial Advisers Limited, while David Stephenson has a charge against Nexus Investment Managers Limited.
Insights
- Rebecca Terrace and Rachael Markham of Squire Patton Boggs examine a recent case which considered guarantee stripping in the CVA context, as well as the potential prejudice to creditors whose claims were compromised in a CVA that was approved because of the votes of unimpaired creditors.
- Adam Silver, Ricci Potts and Richard Herstell of Dechert summarise a recent decision where the Court of Appeal found that third parties can be held accountable under section 213 of the Insolvency Act 1986 – which enables a liquidator to seek contributions from individuals who have been “knowingly parties to the carrying on of the business” in a fraudulent manner – even if they do not exercise management or control over a company.
- Seán McGuinness and Karl Clowry of Addleshaw Goddard consider the share charge enforcement options for private credit lenders, who may now come to prefer appropriation as a less formal, more immediate loan-to-own tool to solve a myriad of issues.
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