Note 1: "Investors and
creditors" (my emphasis).
Note 2: "The current position is that the Joint Administrators have identified and secured servers operated by a third party supplier that appear
to contain a significant volume of date belonging to the Companies" (my emphasis).
Note 3: "Secured and taken control of Companies' banks accounts and various chattels held as security in relation to loans". So bling might be ok?
Note 4: Documentation associated with the loan book (eg loan agreements and security documentation) obtained. Not sure how complete it is.
Note 5: More talk of investors and their status. My interpretation of which is that lenders will be treated first as investors and where / if there is any shortfall then as unsecured creditors of Collateral. If I'm right this is probably positive.
Note 6: BDO welcome the formation of a "Creditors' Committee" (though I am not sure how this sits with the lenders / investors / creditors etc distinction. It could well be the case that a person proposed from this community could sit on such a committee.
Note 7: There are no
secured creditors (my emphasis, also ie of Collateral etc rather than lender assets).
Note 8: BDO have met with Mr Craig.
Note 9: At the date of BDO's appointment there were ~£383k and ~£429k in the Collateral "Office" and "Client" accounts.
Note 10: There is (my emphasis) a discrepancy, of about £28k, between what was in the "Client" account" and what Collateral records indicated should be in the "Client" account.
Note 11: Collateral et al had vacated their registered offices "several months" prior to the administrators arriving there. There were no assets / books / records there.
Note 12: Point 5.3 is hard to summarise or precis but the most important thing I picked up from it is that the C brothers appear to be cooperating.
Note 13: BDO do NOT
(my emphasis) currently have enough information to reconcile investors / balances / credits on specific loans etc.
Note 14: "All the Companies' IT functions were outsourced to an "IT consultant"". Double quotes deliberate.
Note 15: BDO are in contact with said consultant.
Note 16: Some data has been recovered. How much currently lies somewhere between "some" and "all".
Note 17: Collateral, effectively, had two loan books, one chattel based and one property based.
Note 18: As at 2018/02/28 the property loan book is said to have loans of £14.8m v assets >£22m. The chattel loan book is said to have loans of £1.67m v assets >£2.4m
Note 19: A significant part of the loan book is now overdue
: BDO Joint Administrators' Proposals 21 June 2018.pdf (my emphasis).
Note 20: Allocations between CUKL, CSL and CSTL are unclear and may change.
Note 21: "It is too early to provide an estimate of the likely level of recovery of the loan book".
Note 22: "The directors also advised that they were personally holding some chattel assets". The BDO report suggests that these have been obtained / recovered but..... blimey....
Note 23: Pre-appointment fees of £48k paid to RR have been recovered.
Note 24: Records recovered suggest that 1132 investors are exposed.
Note 25: Lots of meandering legal inconclusive stuff about investors / lenders / creditors etc and how they might be treated.
Note 26: "As outlined in Section 6 above, investors will have a claim as unsecured creditors against the relevant Company in respect of any shortfall from any trust claims they may have".
Note 27: BDO are not, currently, in a position to comment on likely recoveries.
Note 28: ".. and no expressions of interest in the business have been received".
Note 29: So far BDO have cost £36.4k for 84.5 billed hours of work.
Note 30: To enable creditors to vote on the above decision procedures (if they so wish) the Joint Adminstrators have pre-completed proof of debt forms for each investor, with the "total amount of claim" (Box 3) extracted from the investor details obtained from the Companies' records etc etc etc". These forms will be sent separately by email from [email protected]
Note 31. If you disagree with what you are sent there is a mechanism to dispute it.
OK, that's enough of my Thursday night
. Feel free to correct / amend / add / challenge etc.