Post on 09-Nov-2020
pwc
Chelbury Homes LimitedHigh Court of Justice
Chancery DivisionBristo’ District Registry
Case No. 8;8 012012
Joint Administrators’ progress report forthe period from
1 December 2014 to 31 May 2015
2 June 2015
WWW.pWC.Co.uk/chelbury
PwCBenson House
33 Wellington StreetLeeds
LS14JP
Contact: Hugh RothwetlTel: 0113 289 4165
Fax: 0113289.4460Email: hughj.rnthwelt@ukpwc.com
www.pwc.co.uk/brs
1. Joint Administrators’ progress report
Section
1 Joint Administrators’ progress report - 3
2 Statutory and other information 4
3 Receipts and payments account 5
4 Expenses incurred in the period 6
5 Analysis of the Administrators’ time costs and Category disbursements 7-9
Abbreviations used in this report
“the Company” Chelbuiy Homes Limited
“the Administrators” or “we” Ross David Connock and Robert Nicholas Lewis
“the Bank” HSBC Bank Plc
“1A86” The Insolvency Act 1986
“1R86” The Insolvency Rules 1986
“Sch.Bi 1A86” Schedule 31 of the Insolvency Act 1986
“Proposals” Administrators’ statement of proposals dated 20
September 2012
Chelbury Homes Limited - in Administration
Joint Administrators’progress reportfor the period 1 December 2014 to 31 May 2015
1. Joint Administrators’ progress report
r.; Introduction
We write to provide an update on the progress of the Administration, covering the period from1 December 2014 to 31 May 2015. Our previous reports covered the period from appointment011 30 July 2012 to 30 November 2014, copies of which are still available atwww.pwc.co.uk/chelburv.
We are approaching the date of the end of the Administration and unless the period of theAdministration is extended, the Administration will automatically end on 29 July 2015. For thereasons set out in this report, we consider that a two year extension is required, and in thecircumstances of this case, it is for the Court to decide whether that extension is granted.
This report has been prepared to support our request for an extension. A notice of extension,if approved, will be subsequently circulated to all creditors and a copy of this report will beavailable at www.pwc.co.uk/chelburv.
Further background information on the Company and events leading up to our appointmentcan be found in our Proposals dated 20 September 2012, which are also available on the abovewebsite.
1.2 Progress in the period
Our previous reports explained our strategy for realising the Company’s assets. At the tune ofour last report, the plot of land at Cheapside, Stroud had yet to be sold, an update of which isset out below
1.2.1 Cheapside, Stroud
The Company owns a one acre plot of land located just to the south of the centre of Stroud,alongside the Thames and Severn Canal.
Subject to planning, an offer for the site has been accepted and contracts were exchanged inMarch 2015 with completion to occur once planning permission has been granted to thepurchaser. The contract has a long stop date of two years to allow for the planning process.
Due to the long stop date running to March 2017, an extension to the Administration istherefore required to progress and complete the sale, and to deliver the uplift in value, planningapproval provided.
1.3 Administrators’ remuneration
The following information is included in Section 5, covering the period of this report:
• An analysis of the time spent in dealing with matters arising in the Administration;
• A narrative explaining the key tasks and issues falling under each category ofwork;
• A summary of our policy for charging and recovering disbursements; and
• A suinmaiy of other professional firms working on this case during the period.
Chetbury Homes Limited - in AdministrationJointAdministrators’progress reportfor the period; December 2014 to 31 May 2015 1
1. Joint Administrators’ progress report
The secured creditor fixed our remuneration on a time cost basis on. 2 October 2013.
Remuneration of £150,000 has been drawn to date with £20,000 drawn during the period of
this report. This is shown in the attached receipts and payments account.
You will note that the time cost charges incurred since our appointment are £279,073. This
amount does not necessarily reflect the amount that will be drawn.
14 Creditors’ rights
Creditors can find information on their rights regarding Administrators’ remuneration, online
at the following address:
http://www.icpew.com/—JmedialFiles/Tecbnical/Iusolvencv/creditors-guideslcreditors
gu$de-to-administrators-fees-eugland-and-wales.pdf
Alternatively, a copy can be provided free of charge by telephoning Hugh Rothwefl on 0113 289
4165.
1.5 Statutory duties
We have also been dealing with the statutory consequences of an administration appointment.
Section 5 provides more detail on these matters which include the submission of quarterly VAT
returns to HM Revenue & Customs, and the preparation of this report.
1.6 Outcome for creditors
1.6.; Secured creditor
Distributions totalling £788,260 have been made to the Bank, including £100,000 distributed
during the period covered by this report.
The Bank was owed £2.8 million at the time of our appointment and is expected to suffer a
significant shortfall on its lending.
1.6.2 Preferential creditors
Preferential creditors principally arise in respect of unpaid wages, subject to statutory limits,
and holiday pay for employees.
As the Company did not have any employees at the time of our appointment, we do not expect
any preferential claims.
1.6.3 Unsecured creditors
There will be insufficient asset realisations to enable a distribution to unsecured creditors by
virtue of the Prescribed Part or otherwise.
In the unlikely event that funds do become available by virtue of the Prescribed Part, we reserve
the right to make an application to Court under Section 176(A) 1A86 for an order not to
distribute the Prescribed Part to unsecured creditors if we conclude the costs of agreeing
ecreditor claims and making the distribution would exceed the funds available.
Chelbury Homes Limited - in Administration
Joint Adminisrrators’progress reportfor the period .i December 2014 to 31 May 2015 2
1. Joint Administrators’ progress report
1.7 Extending the Administration
The Administration is due to automatically end on 29 July 2015. Due to the long stop date ofthe property sale, an extension of 2 years is requested (until 29 July 2017), to allow the propertysale to complete, a final distribution to be made to the secured creditor followed by closureprocedures.
1.8 Next report
Our next progress report will be at the earlier of the conclusion of the Administration or inapproximately six months’ time.
Ross ConuockJoint AdministratorChelbury Homes Limited
Ross David Connock and Robert Nicholas Lewis have been appointed as joint administrators of Chelbury HomesLimited to manage its affairs, business andproperty as its agents and act withoutpersonat liability. Both are licensedin the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England andWales.
The joint administrators are Data Controllers of personal data as defined by the Data Protection Act 1998.PricewaterhouseCoopers LL? will act as Data Processor on their instructions. Personal data will be kept secure andprocessed onlyfor matters relating to the administration
Clielbury Homes Limited - in AdministrationJointAdministrators’progress reportfor the period; December 2014 to 31 May 2015 3
L
2. Statutory and other information
Court details for the Administration: High Court of Justice, Bristol District Registiy
County Court 818 of 2012
Fuli name: Chelbuty Homes Lenited
Trading name: Chelbuty Homes Limited
Registered number: 02195417
Registered address: Benson Houe, 33 Wellington Street, Leeds
IS14JP
Company directors: Julian Magee, Christine Magee
Company secretary: Julian Magee
Shareholdings held by the directors and Julian Magee - 250,000 Li shares
secretary: Christine Magee — 250,000 Li shares
Date ofthe Administration appoIntment: 30 July 2012
Administrators’ names and addresses: Ross David Connock and Robert Nicholas Lewis of
PricewaterhouseCoopers LLP, 31 Great George
Street, Bristol, BSi 5QD
Appointor’s / applicant’s name and address: The directors of the Company, 35 Rodney Road,
Cheltenham, Gto nix
Objective being pursued by the Administrators: Objective Cc) — realising property in order to male a
distribution to one or more secured or preferential
creditors
Division ofthe Administrators’ responsibilities: In relation to Paragraph 100(2)8th. 51 1A1986,
during the period for which the Administration is in
force, any function as conferred by the Insolveiuy
Act 1986 to be exercised by the persons appointed to
act as administrators maybe done by any or all of
the persons appointed or any of the persons for the
time being holding that office.
Proposed end of the Administration: Dissolution
Estimated dividend for unsecured creditors: Nil
Estimated values ofthe prescribed part and the Nil
company’s net property:
Whether and why the Administrators intend to N/A
apply to court snider Section tlr6A(5) 1A86:
The European Regulation on Insolvency The European Regulation on Insolvency Proceedings
Proceedings (Council Reguladon(EC) No. applies to this Arintinistration and the proceedings
1346/2000 of 29 May 2000): are main proceedings.
Chetbury Homes Limited - in AdministrationJointAdministrators’progress reportfor the period i December 2014 to 31 May 2015 4
3. Receipts and payments account
Cheibsary Homes Limited(In adaninlateetlon)
Admlnlateat.ara’ abstract otreeelpt.e end payments
FIXED CHARGE REALISATIONSFunds held in solicitors cilent aacouot
1000000 land -Iladerford1.000,000 P1-sporty development - Princess Royal Road
50,000 Prnpert3’ development - aspic Edge ViewRental income - Princess Royal Rood
Cost OP BEAUSATION / PAYMENTSAgents disbursementsAgents foesInsuranceLagaidlebursementsLegal feesL.egal fees deducted from salicltornoient accountManagement chargescHte hoider feesCce holderS expensesPro-appointment fees and expensesRelease of retentionsRepairs and maintenanceRoad adoption castsSecurityUtilitiesBank chargesIrrecoverable VAT
(5,800,000) DISrRIBITEIONSTOFIXEDCHARGR CREDITORS
NET FIXED CIL4RGE REALIBATJONS/(PAYMENTS)
FLOATING CHARGE REAUSAT IONSFcc-appointment VAT refundRefunds
Cost OFREAUSATION/ PAYMENTSLend reglatty feesLegal disbursementsLegalfeesEtc clearance costsEatement of affaico costsEatutory advertisingHotoge oasIsWebalteIrrecoverable VAT
PREFERENTIAL CREDITORSEmployees arrears ofwages and holidays
DISrRIRUTtONSTO FLOATING CHARGE CREDITORSt*strlbution to secured credilors
NET FLOATING CHARGE REALIS&TIONS/(PAYMRNrS)
UNRECUREDCNEDITORS(11,735) Trodecreditors
£
DIrector’.30 July Zot2 to s December2014 to Total RerperlodHatementof
30 November 0014 SoMay 2005 30 July ooistoAffair.3aM.y 2055
£ £ £
1,79540- 1,795.40
576,000.00- 876,000.00
75,000.00‘ 75,000.00
66.51502 )4.17 66.seg.ns1,059,109.32 174.17 1,059,2S349
(255.28)- (255.28)
(l,65i.oo)- (1,6i.on)
(6,965.82). (6,965.62)
(564.00). (564.00)
(19,294.90). (19,294.90)
(1,795.40)- (1,79540)
(7,170.75) (13.92) (7,184.67)(130,000.00) (2o,000.Oo) (050,000,00)
(373.65)- (373.65)
(5,000.ao). (5,00o,oo)
(10,000.00). (00,000,00)
(3,263,60)- (3,263,60)
(2,872.50)- (2,572.50)
(640.00)- (640.00)
(243.71)- (243.71)
(146.72) (82.10) (228.85)(.5,063.84) (5.183.84)
(095,421.17) (20,096.02) a05.517.i)
(688,260.00) (100,000.00) (788,260.00)
135428.05 for9,921.85) 05,506.30
3.580,02- 3,580.02
644.40- 644.40
4,22442- 4,22442
(11.00). (11.00)
(35.00)- (35.00)
(1.894,00)- (0,894.00)
(74.30)- (74.30)
(i9o,oo)- (190.00)
(172.60)- 1172.60)
(1,393.99) (126,22) (1,520.21)(5o.oo)
- (50.00)(650.99)
- (650.99)(4476.88) (126.22) (4,595.60)
(24746) (126.22) (37348)
(,5.49) (3,587.16) (8.i22.6)
.30,645.20 (1.23,635.23) 7,009.97
VAT account
TOTAL RALANCEAT BANK
Chelbury Homes Limited - in AdministrationJointAdministrators’progress reportfor the period 1 December 2014 to 31 May 2015 5
4.E
xpen
ses
incu
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inth
ep
erio
d
Asta
tem
ent
of
expense
sin
cu
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by
us
as
adm
inis
trat
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betw
een
1D
ecem
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2014
and
31
May
20
15
issh
own
belo
w.
The
sta
tem
ent
pro
vid
es
an
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ofth
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sin
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and
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.T
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are
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may
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be
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at
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30
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ay
20
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££
Bank
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2,6
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Leg
aldis
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--
Legal
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--
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Managem
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2(1
3.9
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-9
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(126.2
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326,3
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he
accru
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rep
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curr
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todate
as
deta
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on
page
9.
Che
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omes
Lim
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-in
Adm
inis
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Join
tAdm
inis
trat
ors’
prog
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report
for
the
peri
od1
Dec
embe
r2014
to31
May
2015
6
5. Analysis ofthe Administrators’ time costs and Category 2disbursements
5.1 Explanation ofwork undertaken
Earlier in this report and in our previous correspondence with creditors, we provided details on our strategy,progress to date and additional matters arising in the Adniinistration. Later in this Section, we have includeda table showing our time costs for the period, by grade of staff and area of work. This shows time costs of£24,406, the key elements of which are explained further below.
Area ofwork Work undertaken in the period includes:Strategy & Planning • Case progression and planning meetings
Secured creditors • Reporting and liaising with the secured creditor. Making distributions to secured creditor
Assets • Liaison with managing and sales agents• Accounting for rental income• Dealing with queries from tenants and purchaser
Accounting and treasury • Periodic bank recondliations. Payment of costs. Account postings for income received
Staffitozy and compliance • Preparing this extension report• Preparing progress report to creditors
Tax &VAT • Preparing and submitting quarterly VAT returns
Chelbury Homes Limited - in AdministrationJoint Administrators’progress reportfor the period; December2014 to 31 May 2015 7
5. Analysis of the Administrators’ time costs and Category 2
disbursements
5.2 Hourly charge-out rates
The charge-out rates applicable to this case are set out below. Time is charged to the Administration in units
of not greater than six minutes.
Administrators’ staff Specialist (max)
Grade£/hr £fhr
Partner 575 1,130
Director 480 1,040
Senior manager 415 875
Manager330 630
SeniorAssociate(qualzfied) 250 465
Senior Associate (unqualified) 180 -
Associate160 225
Support Staff85 130
Specialist departments within our firm (such as Tax, VAT, Property and Pensions) may charge a small number
ofhours if and when we require their expert advice. Such specialists’ rates do vary but the figures above provide
an indication of the maximum rate per hour.
All staff who work on this assignment (including cashiers, support and secretarial staff) charge time directly to
the assignment and are included within any analysis of time charged. Each grade of staff is allocated an hourly
charge out rate which is reviewed from time to time. Work undertaken by cashiers, support and secretarial
staff is charged for separately and is not included in the hourly rates charged by partners or other members of
staff.
5.3 Disbursements
The table below shows the approved policy for charging the different categories of expenses, together with
the costs incurred in the period.
Category Policy£
1 All disbursements not falling under Category 2 are recharged at cost 6.15
2Photocopying - At 5 pence per sheet copied, only charged for cfrculars to creditors -
and other bulk copying.
2Mileage - At a maximum of 71 pence per mile (up to 2,000cc) or 93 pence per
mile (over 2,000cc).
Total for the period6.15
Brought forward from previous period 460.02
Total for the case (to 31 May 2015) 466.17
Chetbury Homes Limited - inAdministration
JointAdministrators’progress reportfor the period i December2014 to 31 May 2015 8
5.A
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ors’
prog
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1D
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2014
to31
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Rule 247Form 2.243The Insolvency Act 1986
Administrator’s progress report 2.24BName of Company
Chethmy Homes Limited
In the
High Court of Justice, Bristol District Registry
We Ross David Connock and Robert Nicholas Lewis of PricewaterhouseCoopers LLP, 31 GreatGeorge Street, Bristol, BS1 5QD
administrators of the above company attach a progress report for the period
fromto
; December 2014 31 May 2015
SignedJoint Administrator
Company Number
02195417
Court case number
8i8 of 2012
Dated