19.11.2008

Allan left over £650k in debts

Allan Access the UK van mounted lift manufacturer and aerial lift distributor that was placed into administration in September looks set to have a deficiency of around £650,000 after the administration has been wound up.

This after Phil Allan, the owner and principal director purchased the operating assets of the business for £315,000 from the administrator. Allan used a dormant company, Allan Access Hire to purchase all of the assets of Allan Access allowing him to continue trading on the same premises exactly as before.

After the bank loan is paid off and the factoring company, there should be a positive balance of over £160,000 to pay a part of the £650,000 owed to creditors, which includes £185,000 of taxes and VAT.

The administrator however seems to have written off any chance of collecting the company’s debtors which effectively wipes out the surplus left from the sale of the assets.

The administrator does say that its forensic team has identified various areas of concern in relation to the companies trading prior to the administration and that it is investigating, although it does not divulge what this might be.

Vertikal Comment

Here we go again, a company goes under the banks take out their money in full, the administrators then spend any balances leaving nothing for the companies that supplied the company in good faith.

We will keep an eye on this administration as it progresses.