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Post by dualinvestor on Mar 31, 2018 13:46:31 GMT
I have created this thread to provide a point of information that is now in the public record that might otherwise get lost in the 75 pages of the "In Administration" thread.
In the thread and elsewhere it has been claimed many times that Collateral was not insolvent.
From section 4 of the Administrators report and proposals in accordance with Paragraph 49 of Schedule B1 of the Insolvency Act 1986 dated 23 March 2018.
"On 21 February 2018 the proposed Administrator met with the Directors to discuss the financial position of the Group. At this meeting, the Directors advised that the Group was unable to pay its debts when they fell due and consequently was insolvent. Refresh Recovery discussed with the Directors various options available to the Group and recommended that the Group be placed into Administration."
(my bold)
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snowmobile
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Post by snowmobile on Mar 31, 2018 14:02:07 GMT
As I read it, that decision was based upon the statement in the preceding paragraph: "... interest payments were becoming due and they were unaware if they were able to pay these as normal due to the restrictions being enforced by the FCA."
They took the view that they couldn't pay the interest due to restrictions imposed by the FCA, rather than not having the cash to do so.
The timing of the Administration is interesting. At that time interest owed to lenders was not overdue and technically lenders were not creditors. If the action had been delayed a few days, would lenders have had greater rights as creditors perhaps?
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mason
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Post by mason on Mar 31, 2018 18:25:58 GMT
The timing of the Administration is interesting. At that time interest owed to lenders was not overdue and technically lenders were not creditors. If the action had been delayed a few days, would lenders have had greater rights as creditors perhaps? Perhaps that option was open to us even though the Administration commenced just before the interest payment was due.
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