03.08.2006

Quigley creditors meeting

A meeting of the creditors of Quigley United Kingdom Ltd was held on July 21 with no creditors present.

We have been contacted by a few creditors who say that they were notified of the meeting only after it had taken place. Whether these were just an unlucky few or that most creditors were not properly notified we cannot say.

Given that the administration process with Quigley has been less than regular, causes many observers to assume the worst.

HM Revenue and Customs was clearly informed of the meeting and put forward a proposal (by proxy) that the administrator’s pre-appointment time be considered as an unsecured claim.

The administrator is also considering placing the business into Creditors Voluntary Liquidation without further consultation with creditors.

No creditors committee was formed as no creditors attended

Most of the company’s debtors (receivables) are already pledged to EFE/City finance Ltd.

It appears that the goodwill was sold to the Quigleys for a mere £5,000

The company has a negative position of £1.4 million of which £446,602 is "deficiencies to Hire Purchase creditors".

The administrators are taking a fee of £50,000
Agents £5,000
Solicitors £15,000

Of the £1 million owed to unsecured creditors, the maximum that might be available for disbursement is £75,000 although the administrator is only proposing to pay 5p in the pound.

All this and yet the accounts show that the company paid out a £105,000 dividend in the year to September 2005.

Vertikal Comment

Just a brief one for the moment,

The more one looks at this affair the more it smells….if you are a creditor of this company please let us know if and when you were invited to the creditors meeting. And let us have your opinions on the administration process.