Innovate Logistics administration will run until end of the year
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justin.stantonf8rbi.co.uk THE ADMINISTRATION of Innovate Logistics is set to continue until the end of the year, having passed the two-year mark in July.
The Innovate group of companies collapsed on 30 June 2008, owing a staggering £176.6m to unsecured creditors.
In the latest report to creditors, joint administrator Shay Bannon notes that his appointment has now been extended until 29 December.
The report also reveals that the outstanding debt of nearly £1.4m, that is subject to a counter-claim, has reached a stalemate.
Bannon states: "There is a substantial outstanding debt of £1.387m, which is split £428,000 in respect of the company [Innovate Logistics] and £959,000 in respect of [Innovate subsidiary] Grampian Country Transport hat is subject to a significant counter-claim.
"The claim relates to the loss of pallets. which the companies had a contractual obligation to control.
"Negotiations with the debtor have reached a point where we feel that it is necessary to contact the major beneficiaries in Innovate Logistics and Grampian in order to acertain how they wish the joint administrators to proceed and how such actions can be funded."
Bannon anticipates "that there may be suffcient funds available to make a payment on account to the preferential creditors': However, he goes on to repeat his statement of six months ago: "Regrettably', there will be no funds available to the unsecured creditors" There is no further update in Bannon's report on the forensic investigation into Innovate's collapse, and no further cost was incurred pursuing this matter in the past six months.
The administrators' remuneration for the two years to date amounts to £542,337