IPA exclusive industry update from Insolvency Insider

IPA Insolvency Practitioner newsletter, March 2023

Contents

• Paul Smith, CEO
• Samantha Keen, President
• NCA Amber Alert: High Net Worth Individuals and Tax Evasion (member login required to view)
• FCA warnings: Impersonation, unauthorised firms and unsolicited emails
• Reminder: High-risk countries for money laundering purposes: Enhanced Due Diligence
• 2023 Annual Conference programme announced – places selling fast! (CPD: 6h)
• 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
• International Women’s Day celebrations

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

• Cholco Limited, LJS Food Limited, Movingfeast Limited, LJS Food Chelmsford Limited, LJS Food Swindon Limited and LJS Food Worcester Limited, six entities within the Elmex Group, which held the leases for 10 sites under the El Mexicana and sister Don Churro brand, entered administration on 2 March. Joint Administrators Tim Bateson and Chris Pole of Interpath Advisory said that the group has recently had to contend with sharply rising costs, as well as challenging trading conditions in the wake of the pandemic. Immediately following their appointment, the Joint Administrators completed a pre-pack sale of the group’s business and assets to Cholco Consulting Limited, which lists the brand’s initial founder, John Coverley, as a director. 92 jobs have been saved. Tc Security Trustee Limited has a registered charge against all six entities, while Tc Loans (Cbils) Limited has a registered charge against three of the companies.
• STR Logistics Limited, a Devon-based transport firm, entered administration on 31 January. David Kemp and Richard Hunt of SFP were appointed Joint Administrators, and said that the company’s financial troubles were caused by a combination of rising costs, a shortage of available spare parts, increased lead time for vehicles and the general downturn of the economy. Immediately following their appointment, the Joint Administrators sold the company’s business and assets to Devon & Cornwall Logistics Limited, saving 144 jobs. Paragon Commercial Finance Limited and Paragon Business Finance PLC each has a registered charge against the company.
• Aartee Bright Bar Ltd and Aartee Bright Bar Property Ltd (collectively, “Aartee“), a West Midlands-based producer and vendor of engineering bars and a major customer of Britain’s third-biggest steel producer, Liberty Steel, entered administration on 6 February. Joint Administrators Michael Magnay and Richard Fleming of Alvarez & Marsal said that Aartee, which employs 250 people, has been facing significant headwinds as a result of the challenging economic environment and fluctuating steel prices.The Joint Administrators are currently exploring options to preserve Aartee’s value. Meanwhile, steel tycoon Sanjeev Gupta has reportedly acquired control of an indirect shareholder of Aartee and is attempting to overturn the administrations. FGI Worldwide LLC and Godfrey Nelson Knowles, Christopher Hugh Hall, Timothy Jobling and Richard Michael Moyse have registered charges against Aartee.

Insights

• The team at Hogan Lovells summarise the Court’s recent approval of an innovative structure utilised in the administration of Sova Capital which will allow the company to achieve materially higher recoveries for its creditors than would otherwise have been possible. 
• Robert Ferne of FRP shares what he is seeing on the ground when reviewing his clients’ wind down plans, and reveals some “easy wins” that are being missed by businesses and their compliance consultants in the drafting and annual review of their wind down plans. 

• Gawain Moore, Ashley Armitage and Oliver Wheeler of Walker Morris discuss the sanctioning of the first creditor-led Part 26A restructuring plan, and consider whether this is an effective new tool in the aggrieved creditor’s arsenal and what it means for insolvency office holders.

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