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Halls creditors unlikely to receive money owed

15th November 2012
Page 9
Page 9, 15th November 2012 — Halls creditors unlikely to receive money owed
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Which of the following most accurately describes the problem?

By Chris Tindall

THE ADMINISTRATOR of Norfolk-based Halls Group said creditors, including 32 former employees whose wages and holiday pay claims stand at £55,750, are unlikely to receive any money.

The family-run, own-account operator, which held a licence authorising 20 vehicles out of three depots in the county, appointed insolvency practitioners from Baker Tilly in July last year.

It blamed a lack of capital and pressure from creditors for placing the company in trouble but, according to its latest progress report, no class of creditor is likely to be repaid.

The report said a £57,000 overdrawn loan account owed by director James Hall was being dealt with via an Individual Voluntary Arrangement, which would see a 34p in the pound return over five years.

However, the report added: “It may not be in the best interests of creditors for the administration or a subsequent liquidation to be kept open for the next five years in anticipation of this dividend. In particular, the costs to retain the case may outweigh the benefit to creditors.” Unsecured creditors were estimated to be owed almost £743,000, and so far claims totalling £674,000 have been received by the administrators.

The report said: “Based on current estimates, it does not appear likely that there will be a dividend payable to this class of creditor.”

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