Psychic Press (1995) Limited - In Liquidation

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Psychic Press (1995) Limited - In Liquidation

Post by zerdini on Mon Jan 23, 2012 3:39 pm

Marsh Hammond & Partners LLP

Psychic Press (1995) Limited - In Liquidation

Clive Hammond and P.A. Marsh were appointed Joint Liquidators of the above named company at a statutory meeting of creditors held on 15th November 2010.

Following lengthy discussions with the prospective purchaser(s) over a ten month period, we successfully received £80,000 for the sale of the business. It was uncertain at the time of the sale whether the payment of VAT on the sale price would be applicable. For that reason, the terms of the sale agreement provided that the purchaser would be obliged to remit the VAT at a later date if it was deemed to be payable. We have since been advised that VAT is payable.

The statement of affairs showed that furniture and equipment with an estimated value of £2,500; £1,500 was agreed for the sale of these items. A stock of books had an estimated value of £2,500 for which £3,500 has been received.

Book debts were also stated to have an estimated to realise value of £4,256.80. To date we have recovered debts to the value of £632.55, but efforts are ongoing.

Cash at bank was £9,264.00, from which some outstanding payments of £542.70 were deducted and we have realised £8,721.30.

Preferential Creditors

According to the statement of affairs, preferential creditors, totalled £3,500.00. Dependant on the result of employee claims made to the tribunal service, the level of preferential claims may increase. The parties have until December 2011 to submit evidence, so an outcome will not be known until early 2012.

Unsecured Creditors

As advised above, the level of unsecured of claim may incease as a result of claims currently being dealt with the Tribunal Service.

According to the statement of affairs unsecured creditors totalled £126,904.99.

Sufficient funds are available to make a distribution to creditors but to date we have not yet agreed all the claims of creditors. We will confirm the amount and timing of a dividend to creditors in due course.

Joint Liquidators’ Remuneration

At a meeting of creditors held on 15th November 2010 a resolution was passed authorising the Joint Liquidators’ fees to be based and paid upon time costs. The resolution passed at the Section 98 meeting was confirmed by a meeting of the liquidation committee held on 19th May 2011.

A statement of affairs fee of £5,000 plus VAT plus disbursements was agreed and paid prior to the liquidation.

The overall time spent to 15th November by the Joint Liquidators and their staff is 246.30 hours and reflects the time and effort spent. This equates to a charge-out rate of £237.73 per hour. Fees have been drawn to date totalling £55,331.15. This figure does not include VAT.

We anticipate being in a position to conclude the liquidation within the next twelve months

zerdini


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Re: Psychic Press (1995) Limited - In Liquidation

Post by Dan on Mon Jan 23, 2012 8:12 pm

Twelve months??

Thank goodness the directors of the new Psychic Press have shown spirituality in action by writing to all us former subscribers who lost money and offering a full credit note. The SNU whose behaviour has been disgraceful, and who failed to repay one single subscriber could learn a lot about spirituality from that.

Dan


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Re: Psychic Press (1995) Limited - In Liquidation

Post by mac on Mon Jan 23, 2012 9:19 pm

Man, when will this ever end?

mac


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Re: Psychic Press (1995) Limited - In Liquidation

Post by Admin on Mon Jan 23, 2012 11:02 pm

Interestingly legal fees are not mentioned and I am sure Marsh Hammond and Partners would have used a fair amount of legal advice. I suspect the unsecured creditors can expect to receive very little and of course the largest of those was the SNU itself

Thanks for posting that Z
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Re: Psychic Press (1995) Limited - In Liquidation

Post by Wes on Mon Jan 23, 2012 11:51 pm

wow, a 55,000 pound liquidator fee that could so easily have been avoided by a bit of, dare I say it: common sense....
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Re: Psychic Press (1995) Limited - In Liquidation

Post by Admin on Tue Jan 24, 2012 12:17 am

Absolutely Wes and that is the second Liquidators fee, berleys will have been more than 10,000 pounds which could have been avoided. That will be part of the debt owed to the SNU by PP1995. So maybe 70,000 in liquidators fees plus legal fees.......Well done Mr Bruton and the NEC. Theres a good news story there I wonder if anyone would publish it.
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