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F Swain creditors to get only fraction of money owed

16th June 2011, Page 9
16th June 2011
Page 9
Page 9, 16th June 2011 — F Swain creditors to get only fraction of money owed
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UNSECURED CREDITORS for F Swain & Son will receive only a tiny fraction of the money they are owed with administrators saying that claims have hit £2.3m.

Directors at the Cheshire haulier appointed administrators in May 2010, after struggling to trade following the loss of a major contract to Wincanton the previous year.

BDO LLP says the company will move into liquidation so that an estimated prescribed part – a ring-fenced fund – of £33,000 can be distributed to irms that are owed money.

However, joint administrators Dermot Power and Patrick Lannagan say employees owed money for wage arrears and unpaid holiday should be paid in full.

The latest, and inal, report from the administrators states: “The level of unsecured creditors is approximately £2.3m. Based on present information, there will be insuficient funds available to enable a distribution to be made to unsecured creditors of the company, other than virtue of the prescribed part.”


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