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03808437_MzA5MjgxMDgyN2FkaXF6a2N4_SoA.txt
Rule 2 29 Form 2 16B
The Insolvency Act 1986
Notice of statement of affairs
Name of company Company number
Tanfield Engineering Systems Limited 03808437 |
in the - Court case number
Newcastle upon Tyne 1123
/ 2013
We,
(a) Insert full
name(s} and
address(es) Linda Farish Anthony Josephs
RMT Gosforth Park Avenue RMT Gosforth Park Avenue
Newcastle upon Tyne NEI2 8EG Newcastle upon Tyne NE12 8EG
attach a copy of -
* the statement(s) of affairs,
* the statement(s) of concurrence,
Signed
Jomt Adm,
Dated
fy
-
Contact Details
You do not have to give any contact Emily Mitchell
information in the box opposite but if
you do, it will help Companies House RMT, Gosforth Park Avenue, Newcastle upon Tyne NEI12 8EG
to contact you if there 1s a query on
the form The contact information Tel
that you give will be visible to
searches of the public record
DX Number DX Exchange
HI
When you have completed and signed the form please send tt to the Registrar of Companies at
Companies House, Crown Way, Cardiff, CF14 3UZ,
DX 33050 Cardiff
THURSDAY
16/01/2014 #154
COMPANIES HOUSE
Rule 2 29 Form 2 14B
Statement of affairs
Name of company Company number
Tanfield Engineering Systems Limited 03808437
In the Court case number
Newcastle upon Tyne 1123 / 2013
Statement as to the affairs of
(a) Insert name and
address of registered Tanfield Engineering Systems Limited
office of the company
of
RMT Gosforth Park Avenue, Newcastle upon Tyne NE12 8EG
(b) Insert date
on the 22nd day of November 2013, the date that the company entered administration
Statement of Truth
I believe that the facts stated in this statement of affairs are a full, true and complete statement of
the affairs of the above named company as at (b) 22 November 2013 the date that the company
entered administration
Full name Brooks, Charles
Dated SS oce 2013
Tanfield Engineering Systems Ltd (company no 03808437) Statement of affairs
A- Summary of assets
Estimated to
Book value realise
Assets subject to Security
Plant and Machinery 71,199 71,199
Less Due to State Security (139,941) (139,941)
Surplus/Deficiency (68,742) (68,742)
Assets not subject to Security
Plant and Machinery 28,415 28,415
Office Furniture 11,437 11,437
Debtors 672,392 575,076
Stock and WIP 156,221 78,111
Property 462,223 270,000
Total assets available to preferential creditors 1,261,947 825,555
Al - Summary of liabilities
Total assets available to preferential creditors 1,261,947 825,555
Liabilities due to preferential creditors (573) (573)
Estimated surplus (deftcrency) as regard to preferential creditors 1,261,375 824,982
Unsecured non-preferential claims
Trade creditors including utilities (341,363) (341,363)
Other creditors (156,516) (156,516)
HMRC liabilities (PAYE, NIC & VAT) (412,133) (412,133)
Associated creditors (394,434) (394,434)
Estimated surplus (deficiency) as regard to non-preferential creditors (43,071) (479,463)
Share capital
Deferred (951,600) (951,600)
Ordinary (8,800) (8,800)
Estimated surplus (deficiency) as regard to members (1,003,471) (1,439,863)
Signature Date Spec Aoty
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ALCO. Aalco Newcastle Ltd ‘The Amari Credit Centre Nautica Navigation Park Waters Meeting Road Bit asw| 15 575 64
ACTOOL ADVANCED CUTTING TOOLS 1 TELFORD CLOSE SALTWELL BUSINESS PARK GATESHEAD TYNE AND WEAR NEg SAG] 3.086 99)
ADVOOL ADVANCED CUTTING TOOLS 1 TELFORD CLOSE SALTWELL BUSINESS PARK GATESHEAD TYNE AND WEAR Neg 586| 1821.48)
‘AIROO4 ADVANCED CUTTING TOOLS 1 TELFORD CLOSE SALTWELL BUSINESS PARK GATESHEAD ‘TYNE AND WEAR NES SBG 46092
AUMIT AUMIT METAL FINISHING WHINFiELD DRIVE AYCLIFFE IND EST COUNTY DURHAM DLS 6AU 46127
APPLE COMPONENT FORCE ETD UNITS A &B BIRLING PLACE BIRUNG KENT MEI9 SIN 9200
ARCO Arco itd POBox Tunddry Way Chainbridge tndustnal Estate Blaydon, Tyne & West NE21 5S] 51537
ARMOO1 ARMAGAIP ADVANCE HOUSE CHILTERN INDUSTRIAL ESTATE CHILTERN CO DURHAM 0117 50) 1000 92
auro22 ‘AUTO DIESEL {NEWCASTLE} ST LAWRENCE ROAD NEWCASTLE UPON TYRE NEG 1AR 1068 16
BN Opt! BN Optical 32 Main Strest Crawerook Tyne & Wear NE4 aNB 819
0c foc PO BOX 12 PRIESTLY ROAD Worley Manchester M28 4us 9.40959]
BOTTOM BOTTOMUNE TECHNOLOGIES LTD 415 CHATHAM STREET READING AERSKHIRE RG1 7x 602 40
BRIER BRIERLEY UFTING TACKLE COLTD TIMMIS ROAD ve STOURBRIDGE WEST MIDLANDS by9 780 960
OTE British Telecom BY Telephone Payment Centre = TVTE Gateshead NEB2 6Xx 13908
C&W HOOK HANGON LTD LEINTWARDINE CRAVEN ARMS SHROPSHIRE SY7 ONa| 27476
CORUSHOT CORUS HOT ROLLED PROCESSING OLDHELD LANE Leeos L512 «0H {19,268 83)
ROM Cromadex Unit 5 Redwood Business Park Oldbury Road Smethwack West midlands 866 1Ni] 6 156 28]
Crowth Crowther Engineering Limited 52 Hutton Close Crowther industrial Estate Washington Tyne & Wear NERS Ad 5.526 09]
‘cusoo2 CUSTOM BRAKES & HYDRAULICS, UNIT 2 HOLBROOK RISE HOLBROOK INDUSTRIAL ESTATE SHEFFIELD 52356] ssnag
0c Derwentside District Council Civic Centre Consett Co Durham, OHESIA 12 622 09}
DEBENHAM KNIGHT FRANK LLP CLIENT TRUST AC RENEWCASTLEPAMOEPT © STANNS QUAY 118 QUAYSIDE NEWCASTLE NEI 368 9834)
DHL Ex OHL international (UK) Led P.O Box 524 Hounslow Middlesex Tw3 917] 1199 66
bupley LASERTUBE oNts AMTOBASE INDUSTRIAL PARK TIPTON ROAD TIVIDALE OLOBURY WEST MIDS B69 3HU (371 64)
OUNLOP H ARGUS POWERBEND PENNYWELL IND ESTATE SUNDERLAND SRA SEN (843 94)]
ENHANCE ENHANCE DRY CLEANING 12 CHURCH STREET SEAHAM CO DURHAM SR? 7HQ| 155.00
ENVOO1 ENVIROCARE MAINTENANCE SOLUTIO. © NEW INN FARM DAWSON LANE LEYLAND LANCASHIRE PR2S SOB] 52a 00
€RHOO1 froks Industrial Services Led Recervables Team Amber Way Halesowen West Midlands 862 BWC} 781 02
ESSEX Essex Hinge Co ltd Tallon Road Hutton Brentwood Essex M13 11 12659)
EVER EVERGREEN PALLET SOLUTIONS. UNITS 6 & 7 ALBERT HILL INDUSTRIAL ESTATE DARLINGTON DL 2NG 1080 00]
fleet Fleet Services North East Unit 20 North of Engtand BIC Wearfield Sondestand SRS 2TA| 221.76
GALOOL GalxC Cooling Services Ltd Unit 3 Lulworth Business Centre Nutwood Way Totton Southampton soa 3ww| 1307 46
GEE Gee Bee Grinding Gellan House Carkste Street Felling Gateshead NE1LD 1.293 60}
Hoggs Blasting & Finishing Equ 10 Armstrong Road Amatrong Industrial Estate Washington Tyne and Wear E37 2PR| 5485 77]
HOGGS FN SKA ANS 21978
HOPWOOD ROY HOPWOOD FASTENERS LTO HIBBERT STREET ‘WHITEHILL INDUSTRIAL ESTATE STOCKPORT
us INDUSTRIAL ANODISING SERVICES. UNITS 12,13 & 14 NUNNS CLOSE SOUTH CHURCH INDUSTRIAL ESTATE BISHOP AUCKLAND COUNTY DURHAM DLLA 6x0 287 00]
IEE UK UMITED 21 BURLEY AD OAKHAM, RUTLAND LE1S 6DH| 1201 9]
i Glasgow G13 1eu 1772.06
jet Jet Engineering Plastics Unit 13d/4 Anoiestand Village Bus Park Netherton Road
Precision Saw & Tool Lid Unit 5 Vance Coun. Transbritannia Industrial Esta Biaydon Tyne and Wear NEZ1 SNH 19 80}
Joe County Durham DHg 9uy| 12 00]
Ken Thom Ken Thomas Ltd ‘The Old Brickworks Tanfield Stanley
UNIT 350 PALLION IND ESTATE EUROPEAN WAY PALLION SUNDERLAND SR465N 12308 17
teen LEENGATE INDUSTRIAL & WELDING NESa 4PU| 633799]
lees Lees Cleaning Contractors LLP 43 Maxwell Street South Sheilds Tyne & Wear
UN CL LOCKSIDE ANCHOR BROOKIND PARK = WEST MIDLANDS ws9 SEQ) sri 20
lek LEKTRONIX OL16 157 1.084 56
uioo02 Uon Springs Ltd Summer Street Rochdate
2OLIME STREET © NEWCASTLE ON TYNE NEA 2P!L| 32451
Lowoo1 LOWES HALLLTD NEIS RT 7549 09]
mas M& 5 Distribution itd Shelley Road Newburn industeaal Estate Newcastle Upon Tyne
Una @ Preserve Works Newburn ind Est Newcastle Upon Tyne, NEIS 987] 6 283 20]
MB PREC MB PRECISION ENGINEERING bupley 479817
MERIDIAN MERIDIAN METAL TRADING MERIDIAN HOUSE GRAZEBROOK INDUSTRIAL PARK PEARTREE LANE
116 MAIN STREET BILTON RUGBY cv2z 7ND 165 60]
METOO3 METAL SUPERMARKETS UK LTD TOLLBRIDGE ROAD BLAYOON TYNE & WEAR NE21 STA 463 48)
NORSTAT NORTHERN STATIONERY LTD UNIT2 BLAYDON TRADE PARK
UNITS SILKWOOD BUSINESS PARK FAYERSWAY OSSETT, WEST YORKS WES 971 2376.00
NosteeL MURRAY PLATE GROUP LTD Natungham NG17 7A 10670 10}
NoTOOL Nottingham Zinc Group Lowmoor Business Park Kirkyan Ashfield 24152
THE CITY WIRE WORKS MORTON STREET 8YKER NEWCASTLE UPON TYNE NEG 21H
PATOO2 PATTERSON RYAN WIREWORKERS, Hebburn Tyne und Wear NE31 180] (22 00)
PHOENIK Phoenm Stee! Unit 12 Ashworth Fraser Estate Station Road
WESTON INDUSTRIAL ESTATE CAERPHILLY 583 1GY 405512
PHS PHS GROUP PLC ADDISON STREET SUNDERLAND SR2 852 2566 13
planet PLANET WELDING UNIT 6 STANFIELD BUSINESS CENTRE 3,003.41
6 Wayside Business Park Wilsons tane Coventry Warwickshire v6 EY]
Pullmax Bystranic UK Limited GL5 3AW 4046 74
RADAN Plant software Led Hadley House Bayshill Road Cheltenham
UNIT 381 H&J JEDBUAGH COURT TEAM VALLEY TRADING ESTATE GATESHEAD ‘NEIL BQ] 369 46
RAPID RAPID ENGINEERING NORTH EAST WEST MIDLANDS ov a1 95009
RHO RHINOCOAT LIMITED UNITS 9 PRINCES IND PARK NICHOLLS ROAD TIPTON
4 Rushmilts Northampton NINA 7B 1264
RICOH Recob UK Lid ficoh House N17 5UB 391.29
RSCOM RS Components Limited PO Box 888 Corby Nonthants
ENTERPRISE WORKS 2 HUNSLEY STREET SHEFFIELO sa spy] 1160.39
RSH RUBBER SAFETY HYGIENE (TD Cheshire SKI6 4UL 206191
Ryder Ryder Logistics Dukinfietd Acct Ctr Globe Lane Dukinfield
uN 2 MILL LANE LANGLEY MOOR OURHAM DH? SHE 127782
SAFES ‘SAFE AND SURE FIRE PROTECTION Chorley North Lancashire PRG 7BX 600 00
SAL001 SAL Abraswve Tech Group itd Abrasive Drnsion Unit 44/45 Drumbead Road 5,041 76
Scott Engineering, Unit 22 Baltic Road Felhing Shore tnd Est Gateshead NEL SB
scot GATESHEAD TYNE AND WEAR NE11 ORX B86 50
sev SEV AERIAL ACCESS MARQISWAY TEAM VALLEY TRADING ESTATE 1797 34
SHELL shell UK Utd, Rowlandsway Wythenshawe Manchester M22 $88
Byron Street Mills Millwright Street Leeds 182706 (1860)
SHORES A Shores & Co., Co Ourham Dié 20N 12 376 24
sme Shitdon Manufacturing Company Unit 18 Dabble Duck Ind Est Shildon
Unt 2 45 ings Walk South Kirkby Pontefract wre 300] 105 70
SPARTON Spartan Lubricants United NE3B 902 261 00
SPRAY SPRAYGUN CLEANING SERVICES 16 HARTHORPE CLOSE RICKLETON WASHINGTON
Staples Advantage Tameside Orive Holford Birmungharn BG 7AY 835 22
STADOL Staples Stationary WF13 2BD| 28 58]
taystud ‘TAYLOR STUDWELDING SYSTEMS LTD COMMERCIAL ROAD DEWsBURY WEST YORKSHIRE
PO Box 4459 Worthing N13 1XP] 480 68
tele Vurgin Media Payments tid DHg IHR 588 00)
THO001 ‘Thomas Madrell Chartered Surve 1 New Street Sherburn Ourham
FAQ Kelly Johnson, POBox 4 Ramabottom Lancs BLOAR 165 78
INT TNT Express UK Ltd BLO GR 420}
TNTINTER TNT INTERNATIONAL PO BOX 186 RAMSBOTTOM BURY
Mayflower Close Chandlers Ford ind Est Eastleigh Hants, S053 AAR {123 43)
TOWER Tower Machine Tools tid WEST MIDLANDS, Bep anu] 13212
TUBES TUBES UK UNIT B AUTOBASE IND PARK TIPTON ROAD TIVIDALE TIFTON WARLEY
Battle Hill Dr Wasshiand Tyne & Wear Eze SNL] 2.050 00
TYNOOI Tynemet Colleg SHEFFIELD byS 25x 276
VAN LEEU Van Leeuwen Wheeler Lid fine Lock Works Mill Street Briertey Hill West Midlands
LTD 73 TAY AVENUE TEESIDE IND EST TWORNABY STOCKTON TSI7 92 97:20]
vx VIXEN SURFACE TREATMENTS TYNE & WEAR NE3B 9B2| 17944 44
washingt WASHINGTON WATERIET LTD 14 SEDLING ROAD ‘WEAR INDUSTRIAL ESTATE WASHINGTON
unm? BLAYDON TRADE PARK TOLLBRIDGE ROAD BLAYDON TYNE & WEAR NE23 STR 3785 69
WATER NORTHERN STATIONERY L7D TYNE ANO WEAR E38 982 3115 69)
WEARSIDE ‘WEARSIDE PNEUMATICS 8 SEDLING ROAD WEAR INDUSTRIAL ESTATE ‘WASHINGTON
7 Stanley Road Salford Greater Manchester M7 4EG 5867189 '
Welcome Welcome Estates tid $N3 4TQ) 108459
WILSON WILSON TOOL STIRLING ROAD SOUTH MARSTON IND EST SWINDON
NEWRURN FORD HOUSE NEWBURN BRIDGE ROAD NEWCASTLE UPON TYNE NELS BNA] 103 60317
WAG WAG STEEL SERVICES 341,362 63]
Total Trade creditors
Qther editors, ‘$12 133 08]
HMRC (Vat and PAYE/NIC) 129 940 73
State securities finance bease balance 394 434 11
Tanfield Group PLC working capttat loan $72 66|
Payroll deductions 156 $15 54
Accounting accruals 1,103,596 12,
Total Other creditors
1444958 50
TOTAL LIABILMES
5 gec2ors
Form 2.15B
Rute 2.29
Statement of Concurrence
Name of Company Company number
Tanfield Engineering Systems Limited 03808437
In the ~ | Court case number
Newcastle upon Tyne
{full name of court)
(a) Insert fuil name and With regards to the Statement of Affairs of (a)
address of registered Tanfield Engineering Systems Limited
office of company to (‘the company’)
which
statement of affairs Vigo Centre, Birtley Road, Washington Tyne & Wear NE38 SDA
relates
({b) Insert date statement
of truth on the statement
made on (b) 5H™ Neceembck 20/3
of affairs was made
{c) Insert full name of by (c)
person who made the MR GHakteS GhookSs
statement of truth on the
statement of affairs being
concurred with
Statement of Truth
(d} Insert full name and
address of person making
\ (d) MARE ORVIO HuTGUNSON .
Statement
*Delete as applicable *concur with the Statement of Affairs of the above company and | believe that the facts
stated tn the Statement of Affairs are a full, true and complete statement of the affairs
of the company on the date that it entered administration
OR
(e) Please fist matters tn
the statement of affairs
which you are not in
agreement with, or which
you consider to be
erroneous or misleading,
or matters to which you
have no direct knowledge
and indicate reason for
listing them
and believe that, subject to these qualifications, the facts stated in the statement of
affairs are a fuil, true and compiete statement of the affairs of the company on the date
that it entered administration
Full name MALE Ovid HUTSON -
Signed j]
re
Dated Cm lecenkeh Ct 3,
pn
Form 2.15B
Rule 2.29
Statement of Concurrence
Name of Company Company number
Tanfield Engineering Systems Limited 03808437
in the Court case number
Newcastle upon Tyne
{full name of court}
(a) Insert full name and With regards to the Statement of Affairs of (a)
address of registered Tanfield Engineering Systems Limited
office of campany to (‘the company’)
whieh
statemont of affairs Vigo Centre, Birtley Road, Washington Tyne & Wear NE38 8DA
relates
(d) Insert date statement
of truth on the statement
made on(b) Sb Dec 2O1S
of affairs was made.
(c) Insert full name of
person whe made tho
statement of truth on the
"© Charles Brock s
statement of affairs bemg
concurred with
Statement of Truth
(d) Insert full name and
address of person making 1) Miclvael Waal
Statement
"Delete as applicable *concur with the Statement of Affairs of the above company and | beleave that the facts
stated in the Statement of Affairs are a full, true and complete statement of the affairs
of the company on the date that t entered administration.
OR
“concur with the Statement of Affairs of the above company, subject to the following
qualificatons
{e) Please list matters in
the statement of affairs em N [Ps
which you are not in
agreement with, or which
you consider to be
erroneous of misleading
of matters to which you
have no direct knovdedge
and indicate reason for
listing thom
and believe that, subject to these quahfications, the facts stated in the statement of
affairs are a full, true and complete statement of the affairs of the company on the date
that it entered administration
Full name Michae\ Vi cen
Signed e\ Wisorde >
Dated C& Dec ZOVS.
Form 2 1B
Rule 2.29
Statement of Concurrence
Name of Company Company number
Tanfield Engineering Systems Limited 03808437
In the Court case number
Newcastle upon Tyne
(full name of court)
(a) Insert full name and With regards to the Statement of Affairs of (a)
address of registered Tanfield Engineering Systems Limited
office of company to (‘the company’)
which
statement of affairs Vigo Centre, Birtley Road, Washington Tyne & Wear NE38 9DA
relates
(b) insert date statement
of truth on the statement made on(b) £Ngcendshto $8.
of affairs was made
(c) Insert full name of
person who made the
YO) Beaheds Dheoks.
statement of truth on the
statement of affairs being
concurred with
Statement of Truth
(d) Insert full name and
address of person making
Statement
(0 Rey seh
*Delete as applicable *concur with the Statement of Affairs of the above company and | believe that the facts
stated in the Statement of Affairs are a full, true and complete statement of the affairs
of the company on the date that it entered administration
OR
_——_— oe
cconcurwainihe Statementef Aas ot tie abovec byect to the following
(e) Please list matters in
the statement of affairs (e)
which you are not in
agreement with, or which
you consider to be
erroneous or misleading,
or matters to which you
have no direct knowledge
and indicate reason for
fisting them
and believe that, subject to these qualifications, the facts stated in the statement of
affairs are a full, true and complete statement of the affairs of the company on the date
that It entered administration
Full name Keo
Signed
Dated LOT Mend 48 Zant
Form 2.15B
Rule 2.29
Statement of Concurrence
Name of Company Company number
Tanfield Engineering Systems Limited 03808437
In the Court case number
Newcastle upon Tyne
(full name of court)
(a) Insert full name and With regards to the Statement of Affairs of (a)
address of registered Tanfield Engineering Systems Limited
office of company to (‘the company’)
which
statement of affairs Vigo Centre, Birtley Road, Washington Tyne & Wear NE38 9DA
relates
(b) Insert date statement made on (b)
of truth on the statement Sh Der be XOI%
of affairs was made
{c) insert full name of
person who made the
yO) Cheeies reoK <
statement of truth on the
statement of affairs being
concurred with
Statement of Truth
(d) Insert full name and 1 (d) DARREN (Ave
address of person making
Statement
*Delete as applicable *concur with the Statement of Affairs of the above company and | believe that the facts
stated in the Statement of Affairs are a full, true and complete statement of the affairs
of the company on the date that it entered administration
OR
*concur with the Statement of Affairs of the above company, subject to the following
qualifications
(e) Please list matters in
the statement of affairs (e) N |
which you are not in
agreement with, or which
you consider to be
erroneous or misieading,
or matters to which you
have no direct knowledge
and indicate reason for
listing them
and believe that, subject to these qualifications, the facts stated in the statement of
affairs are a full, true and complete statement of the affairs of the company on the date
that it entered administration
Full name DReEREN STEPHEN, KElY
Signed LALA,
brad.
—V
Dated
[ i
Our Ref LT6000 LAF/SHS/ELM
ACCOUNTANTS & BUSINESS ADVISORS
9th January 2014 MAKING BUSINESS MAKE SENSE
TO ALL KNOWN CREDITORS
Dear Sirs
Tanfield Engineering Systems Limited In Administration
ore)
As you are aware, Anthony Josephs and | were appointed as Joint
Administrators of the above company on 22™ November 2013 | enclose notice
of a meeting of creditors to consider the Joint Administrators’ proposals under
Schedule B1 paragraph 49 to the Insolvency Act 1986 The Meeting will be held
on 30" January 2014 at 2 00pm at RMT, Gosforth Park Avenue, Newcastle upon
Tyne, NE12 8EG
| also enclose a copy of the Joint Administrators’ report to be presented to the
meeting of creditors This provides details of the background to the
Administration Order, actions taken by the Joint Administrators and the proposals
to be considered by the creditors
In order to vote at the meeting, a creditor must be present or represented at the
meeting and submit, not later than 12 00 noon on 29" January 2013, details in
writing of the debt due to them from the company A proof of debt form and proxy
form are attached for completion and these should be returned to RMT, Gosforth
Park Avenue, Newcastle upon Tyne, NE12 8EG
Creditors may attend the meeting by electronic means and should contact Emily
Mitchell for further details if this facility is required
The resolution to approve the Joint Administrators’ proposals requires the
approval of a majority (in value) of those creditors present and voting, in person
or by proxy, at the meeting Creditors should be aware that the resolutions
included tn the proposals include the fixing of the Administrators’ remuneration
In addition to the resolution to approve the Administrators’ proposals, the
Administrators propose to table a resolution concerning the agreement of their
unpaid pre-administration costs and expenses if a Creditors’ Committee is not
formed Details of the resolution are printed on the attached proxy form
Information about current charge out rates and expenses !s set out In Appendix II]
of the attached report under the heading, “Practice fee recovery policy for RMT’,
which includes details of where creditors can obtain the “Creditors guide to Fees”
which contains guidance notes covering the basis of Administrators’ fees If
creditors require any assistance or a hard copy of the guide please contact me
RMT Accountants & Business Advisors Ltd
Gosforth Park Avenue Newcastle upon Tyne NE12 8EG
t 01912569500 f 0191 2569501 advice@r-m-t co uk www r-m-t co uk
RMT ACCOUNTANTS & BUSINESS ADVISORS LTD REGISTERED IN ENGLAND - NUMBER 06036364
ACCOUNTANTS & BUSINESS ADVISORS
MAKING BUSINESS MAKE SENSE
{f you require further information or an explanation of the purposes for which the
meeting Is to be held, please contact Emily Mitchell at the above address
Yours faithfully
For and on behaif of -
Tanfield\Engineering Systems Limited
Linda A Fari h
Joint Administrator
AA Josephs and L A Fansh are licensed in the United Kingdom to act as insolvency Practitioners by
the Association of Chartered Certified Accountants
Our Ref LT6000 LAF/SHS/ELM
ACCOUNTANTS & BUSINESS ADVISORS
Sth January 2014 MAKING BUSINESS MAKE SENSE
TO ALL KNOWN CREDITORS
Dear Sirs
Tanfield Engineering Systems Limited In Administration “the Company”
This report to creditors which incorporates our proposals together sets out the
information required by and discharges the Joint Administrators’ duty pursuant to
Paragraph 49 of Schedule Bi of The Insolvency Act 1986 and Rule 2 33 of The
Insolvency Rules 1986
1 Statutory Information
Statutory information relating to the Company and information regarding the
appointment of the Administrators is attached at Appendix |
2. Circumstances giving rise to the appointment of Administrators
The Company was incorporated on 16 July 1999 under company registered number
03808437 The Company's registered office was the Vigo Centre, Birtley Road,
Washington, Tyne & Wear and was changed to RMT, Gosforth Park Avenue,
Newcastle upon Tyne NE12 8&G for the purposes of the Administration
The Company traded from leasehold premises at Unit BT 95/2 and Unit BT 95/6,
Tanfield Lea Industrial Estate North, Tanfield Lea, County Durham, DH9 9NX, and
employed 97 full time operatives across both locations
The Company forms part of the Tanfield Group Ple (“Group”) Group operates in the
engineering sector and previously had divisions that specialised in the manufacture
of electric vehicles and the manufacture of aerial lifts (known as the Snorkel
division) Group trades from sites around the world with a combined turnover of
£45,072,000 for the year ended 31 December 2012
The Company became part of Group in around 2000 It traded as a metal fabricator
supplying blue chip companies as well as Snorkel
The Company supported Snorkel when it had quality issues with tts overseas
suppliers and also helped to deal with engineering trials and product development
before the introduction of a new product
RMT Accountants & Business Advisors Ltd
Gosforth Park Avenue Newcastle upon Tyne NE12 8EG
t 0191 256 9500 f 0191256 9501 advice@r-m-t co uk www r-m-t co uk
RMT ACCOUNTANTS & BUSINESS ADVISORSLTO REGISTERED IN ENGLAND - NUMBER 06036364
ACCOUNTANTS & BUSINESS ADVISORS
MAKING BUSINESS MAKE SENSE
Snorkel's business contracted massively during the recession which had a knock-on
effect on the level of orders placed on the Company The Company's turnover was
around £500,000 per month At that level of turnover the Company was more or less
breaking even As a result of the downturn tn the Snorkel work, the Company had
insufficient funds to provide working capital in order to grow turnover again By
September 2013, the Company's turnover was less than £300,000 a month and tt
was not profitable on a month by month basis The cash requirement was being
funded by Group because the Company was important to the Snorkel division
During the course of 2013, the financial position of Group worsened because of
trading difficulties, which led it to the decision to sell the Snorkel business to an
independent third party The sale of the Snorkel division to an American purchaser
took place in October 2013 There was then no commercial reason for Group to
continue to meet the Company's significant trading losses
Shortly after the sale of the Snorkel division the Directors decided to explore
opportunities to sell the Company to a third party purchaser Whilst a party showed
interest in the Company they advised that full due diligence would only be carried
out if HMRC agreed to a repayment schedule of its debt, which at that time was
estimated at £313,000 Despite protracted discussions with HMRC, HMRC refused
to agree to an arrangement that was acceptable As a result the interested party
withdrew its interest and the Directors immediately took steps to take advice from an
insolvency practitioner RMT were approached by the Directors on 11" November
2013
3 Trading Performance of Company
A summary of the recent trading performance of the Company ts shown below
j Mgmt Accts Statutory Accts | Statutory Accts
Mths Jan to 12 mths to 12 mths to
Sept 2013 31/12/11 31/12/10
£'000 £7000 £'000
Turnover 2,636 Turnover §,430 3,770
Cost of Sales (2,437) Raw Matenals and (2,418) (1,778)
consumables used
Staff Costs (2,352) (1,781)
Overheads (806) Depreciation (151) (178)
Other Operating (1,050) (944)
Expenses
Gross Profit (725) Gross Profit (541) (1,067)
Gross Profit % (27 5) Gross Profit % (9 9) (28 3)
Net Loss (1,113) Net Loss from (505) (1,070)
i continuing operations .
Net loss after (505) (6,184)
discontinued loss
making operations
ACCOUNTANTS & BUSINESS ADVISORS
MAKING BUSINESS MAKE SENSE
It should be noted that the management accounts have not been verified for accuracy
and therefore may not reflect the Company’s true trading position
4. Objectives of Administration and strategy for achievement by the
Administrators
Following the review of information provided by the Company it was established that a
trading administration would provide a significantly better return to creditors This would
have the effect of
1 Protection of the Company’s debtor book of £602,404,
2 Allow a period for the marketing and potential sale of the business,
3 Protect employment for employees thus reducing the contingent redundancy
and other associated costs against the Company
A sum of £234,000 was due to be paid to the Company from its major customer on 25
November 2013 Following a review of the cash requirements of the Company over a
four week period it was established that these monies could fund trading for a four
week period with a view to attempting to achieve points 1-3 above
However, after passing board resolutions with a view to appointing Joint Administrators
it was established from a review of the Central Index that a winding up petition had
been issued against the Company by HMRC on 8 November 2013
The Company had not given any qualifying floating charges, and therefore as a resuit
of the presentation of the petition the Company or its directors were no longer able to
appoint an administrator under Paragraph 22, Schedule B1 of The Insolvency Act
2006
We made contact with HMRC to advise of the significant benefits that an Administration
would provide over liquidation and following correspondence with HMRC they agreed
to withdraw the petition on the grounds that the Directors would confirm that the
appointment of Administrators would occur immediately after the withdrawal of the
petition On the morning of 22 November 2013 HM Revenue & Customs solicitors
forwarded written confirmation that the petition had been withdrawn
On 22 November 2013 the Directors appointed Anthony A Josephs and Linda A Farish
of RMT as Joint Administrators, pursuant to Paragraph 22 of Schedule B1 of the
Insolvency Act 1986
The appointment permitted the Joint Administrators to take any actions required either
jointly or solely
ACCOUNTANTS & BUSINESS ADVISORS
MAKING BUSINESS MAKE SENSE
As Administrators of the Company we are Officers of the Court and must perform
our duties in the interests of creditors as a whole with the objective of -
(a) rescuing the company as a going concern, or
(b) achieving a better resuit for the company’s creditors as a whole than would be
likely tf the Company were wound up (without first being in Administration), or
(c) realising property in order to make a distribution to one or more secured or
preferential creditors
4 The first objective (a) could not be achteved because the financial
circumstances of the Company meant that it was not envisaged that a share
purchase could be achieved and a company voluntary arrangement was not
appropriate
2 As a result we sought to achieve objective (b) for the Company by trading
the Company to protect the book debt and sell the business and assets as a
going concern
The strategy for the administration 1s therefore for the Administrators to perform their
functions with the purpose of achieving objective (b)
The insolvency iegislation has set a 12 month maximum duration for
administrations, unless the duration is extended by the court or the creditors If we
are unable to complete the administration of the Company within 12 months then we
will either apply to the court, or hold a meeting of creditors, in order to seek approval
to extend the duration of the administration
5. Actions of the Administrators following appointment
The Company manufactures the majority of its products for one customer which
represents 80% of its debtor book The supplies to this Customer were for production
lines on a Just in time basis and if the Company had proceeded into liquidation, with a
resultant cessation of trade, we believe that damages would have been applied,
arising from the customer’s production line downtime, which may have resulted in this
debt becoming uncoilectable, with potential for further damages claims against the
Company
Funding for trading the administration was obtained from the realisation of book debts
from the major customer as detalled above Upon appointment the Joint
Administrators and their team consulted with the Union and the employees as, based
on cash availability, a reduction of circa 40% wage overhead was required to allow
the Jomnt Administrators to continue to trade The Joint Administrators and their staff
managed trading, negotiated with customers and met with interested parties at the
Company's premises
A copy of the trading account is attached at Appendix IV
ACCOUNTANTS & BUSINESS ADVISORS
MAKING BUSINESS MAKE SENSE
Baker Tilly, as auditors of the Company, were instructed to take steps to market the
Company whilst the Administrators traded the Company as a going concern to
preserve goodwill and relationships between the Company, tts customers and
suppliers
Following the issue of an initial one page sale memorandum to specific parties
interested in the engineering sector and across a database of general intermediaries,
corporate financiers, brokers, IFA’s, accountants, lawyers etc, 15 companies
registered their interest in purchasing the company with Baker Tilly and signed non
disclosure agreements Of those, 8 visited the Company premises and had access to
the Company's business, assets and employees
Interested parties were requested to submit offers by 5pm on Friday 6" December
2013 Offers were received from two parties and after review of the offers on gh
December 2013, draft contracts were issued to Tinsley Special Proyects Limited
A sale of substantially ail of the Company's business and assets to Tinsley Special
Projects Limited was completed on 13" December 2013
6. Proposed exit route of Administration.
Under the insolvency provisions of the Enterprise Act 2002, all administrations
automatically end after one year unless an extension Is granted by the Court or with
consent of creditors
There are a number of exit routes available from administration which may include -
(a) Filing a notice of dissolution with the Registrar of Companies and the Company
being automatically dissolved 3 months after registration of the notice
(b) Placing the Company into Creditors’ Voluntary Liquidation
(c) Presentation of a winding up petition for compulsory winding up of the Company
(d) An application to Court for an order that administration ceases
(e) Notice to the Court, Registrar of Companies and creditors that the objective of the
administration has been achieved
{n the formal proposals which follow, the Administrators have stated which alternative
exit options they believe are most appropriate to this administration
7. Statement of proposals pursuant to Paragraph 49 of Schedule B1 of the
Insolvency Act 1986
in order to achieve the objective set out at section 4 above as Administrators of the
Company we formally propose to creditors that
(a) we continue to manage the business, affairs and property of the Company in
order to achieve the purpose of the administration In particular that
(1) the sale of the Company’s assets following administration be approved
by the creditors,
(in) the Administrators continue to sell and collect in the assets of the
Company and manage the affairs of the Company,
ACCOUNTANTS & BUSINESS ADVISORS
MAKING BUSINESS MAKE SENSE
(in) the administrators investigate and, if appropnate, pursue any claims that
the Company may have against any person, firm or Company whether
In contract or otherwise, including any officer or former officer of the
Company or any person, firm or Company which supplies or has
supplied goods or services to the Company,
and
(Iv) do ail such things and generally exercise all their powers as
administrators as we have at our discretion and consider desirable or
expedient in order to achieve the purpose of the administration or
protect and preserve the assets of the Company or maximise the
realisations of those assets, or of any purpose incidental to these
proposals
(b) the administration will end by placing the Company into Creditors’ Voluntary
Liquidation, and we propose that we, Linda Ann Farish and Anthony Alan
Josephs, are appointed the Joint Liquidators of the Company and that we will
act jointly and severally in our duties Creditors may nominate a different
person(s) as the proposed liquidator(s), but you must make the nomination(s) at
any time after you receive these proposals, but before they are approved
Information about the approval of the proposals |s set out in section 12
(c) Our pre-appointment remuneration and costs be approved as follows
RMT Accountants — £17,588 50 plus VAT
Wardhadaway — £7071 00 pius VAT
(d) we are remunerated by reference to time properly spent by us and our staff in
dealing with matters relating to the administration of the Company, such time to
be charged at the hourly charge out rate of the grade of staff undertaking the
work at the time tt was undertaken Details of the current charge out rates for
ourselves and our staff are set out in Appendix Ill under the title “Practice fee
recovery policy for RMT”
(e) We be authorised to draw category 2 expenses as outlined in appendix III of
these proposals
(f) Pursuant to paragraph 98 of Schedule B1 to the Act, the Joint Administrators
shall seek a resolution from those relevant Company's creditors that they be
discharged from lability in respect of any action of theirs, as Joint
Administrators, upon the cessation of their appointment as Joint
Administrators
8 Financial Position of the Company
A summary of the Company’s estimated financial position as at 22/11/2013, which is
known as a statement of affairs, is attached at appendix II This has been prepared by
the directors and the Statement of Truth has been signed by Charles Brooks and
Statements of Concurrence have been received from all of the Directors
Comments on the Statement of Affairs
ACCOUNTANTS & BUSINESS ADVISORS
8.1 Leasehold Land & Buildings MAKING BUSINESS MAKE SENSE
The Company’s land and buildings were valued by Bradley Hall Chartered
Surveyors (“Bradley Hail”) The company traded from two units at Tanfield Lea
Industrial Estate North, both of which were leased
Unit BT 95/2 was held on a short term lease expiring on 13 November 2013
and Bradley Hall confirmed there was no value in the lease The remaining
lease 1s not in the name of the Company as, although it was believed by the
Directors to have been transferred to the Company, it Is still held by one of the
Group companies Our lawyers advise that it is held on trust for the Company
8.2 Book Debts
The realisable value given by the Directors with regard to book debts takes
into account known bad debts and they estimate that 85% of debts will be paid
In full
The book debts were excluded from the sale of the business and assets
8.3 Plant & Machinery
The majority of the Company's plant and machinery was subject to a finance
agreement and chattel mortgage with State Securities plc
All owned plant and machinery is shown at the Directors’ estimate in the
Statement of Affairs
The Joint Administrators obtained valuations from James Sutherland
(Auctioneers) limited on an auction value and value to business basis The
actual values realised are reflected in the Receipts and Payments account
attached to our proposals at Appendix V
Two items of plant and machinery with a value to business of £30,000 were
excluded from the sale of business which are currently being marketed for
sale by our agents, James Sutherland (Auctioneers) Limited
8.4 Office Furniture, Fixtures & IT Equipment
The figures in the Statement of Affairs are Directors’ estimates However, all
furniture, fixtures and IT equipment have been valued by James Sutherland
(Auctioneers) limited on an auction value and value to business basis
The actual vaiues realised are included in the Receipts and Payments account
attached to our proposals at Appendix V
8.5 Preferential Creditors
The only preferential creditors are former employees of the Company for
unpaid wages and holiday pay Their claims are subject to a maximum limit
set by insolvency legisiation
ACCOUNTANTS & BUSINESS ADVISORS
MAKING BUSINESS MAKE SENSE
The amount of £825,555 for preferential claims in the Statement of Affairs is
the Directors’ estimate of the amount due We anticipate that the preferential
creditors will be significantly lower at around £51,900
8.6 Unsecured Creditors
The unsecured creditors in the Statement of Affairs are the Directors’ estimate
From the statements received from creditors, this appears to be an accurate
estimate
We anticipate a substantial dividend will be payable to the unsecured creditors
in this case
9. Prescribed Part
There are provisions of the insolvency legislation that require an administrator to set
aside a percentage of a company’s assets for the benefit of the unsecured creditors in
cases where the company gave a “floating charge” over tts assets to a lender on or
after 15 September 2003 This ts known as the “prescribed part of the net property” A
company’s net property Is that left after paying the preferential creditors, but before
paying the lender who holds a floating charge An administrator has to set aside
50% of the first £10,000 of the net property, and
¢ 20% of the remaining net property up to a maximum of £600,000
There 1s no floating charge and therefore the prescribed part provisions will not apply
10. Administrators’ Receipts and Payments Account
We attach a summary of our receipts and payments relating to the Company for the
period from when it entered administration on 22/11/2013 to the date of these
proposals, at Appendix V
The sale of the business and the majority of owned assets was completed on 43"
December 2013 to Tinsley Special Projects Limited The gross sale price was
£243,096 89 less wage allowance of £58,26400 and deferred consideration of
£30,000 (subject to agreement of apportioned trading costs) £154,826 89 net
proceeds were paid by the purchaser on completion and a further £30,000 ts due on
or before 31 January 2014 subject to agreement of apportionments
Two machines with a value to business of £30,000 were excluded from the sale to
Tinsley Special Projects Limited (“TSP”)
Prior to the Administrators’ appointment, the Landlord served a Notice of Seizure of
Goods and Inventory, and took walking possession over the goods for rent due at the
quarter end September 2013 of £47,500 plus VAT It transpired that the majority of
the goods seized were those owned by State Securities plc The Administrators
sought legal advice and a sum of £5,000 was agreed and paid to the Landlord in
settlement of the walking possession to release for sale those goods owned by the
Company
ACCOUNTANTS & BUSINESS ADVISORS
MAKING BUSINESS MAKE SENSE
As part of the sale agreement TSP made payment to the Joint Administrators to cover
the rent on the main unit which fell due on 31/12/13 together with a licence fee on the
second unit at a sum of £5,000 for the 6 month period to 12" March 2014 These
were to be held by our solicitors with payment being made as and when they fall due
Payments made in respect of the sale include legal fees of £12,929 (net), and walking
possession settlement of £5,000 (payable to the landlord)
We attach a summary of the trading profit and loss account showing receipts and
payments relating to the Administrators trading of the Company for the period from
when it entered administration on 22/11/2013 to the sale on 13/12/13, at Appendix IV
The trading account at Appendix IV ts prepared on an accruals basis and includes an
element of pre-appointment wages The receipts and payments account at Appendix
V Is prepared on the basis of actual receipts and payments to date shown and
therefore the trading deficit does not include credit for Administration debtors not
received at that date or payments not yet due to administration suppliers at the date
of this report
The Joint Administrators’ are of the view that in trading the Company the asset
realisations have improved as follows
Assets Directors’ Estimate | Estimate to Realise | Estimate to Realise
in Statement Of | In Liquidation In Administration
Affairs
Debtors $75,076 100,000 573,826
Goodwill 0 0 19,994
Leasehold Property 270,000 195,000 195,000
Office - (28,890) 83,060 100,000
Furniture, Plant
& Machinery
(inc financed)
Stock & WIP 78,111 20,000 112,833
TOTAL 894,297 398,060 1,001,653
11. Proposed Future Actions of the Administrators to Achieve the Objective of
the Administration
In order to achieve the objective for the Administration of the Company we propose to
collect the remaining book debts, sale proceeds, Joint Administrators’ trading sales,
sell the two remaining machines, sell the leasehold interest in the property held on
trust for the Company and do all else necessary in respect of realisation of assets and
make payments to creditors as necessary
Once this is complete, or when appropriate, the Administrators will seek to place the
Company into creditors’ voluntary liquidation, in order that distributions can be made
to creditors
ACCOUNTANTS & BUSINESS ADVISORS
MAKING BUSINESS MAKE SENSE
12. Administrators’ Remuneration and Expenses
The Administrators propose that their fees will be charged by reference to the time
properly spent by them and their staff in dealing with matters relating to the
administration of the Company This time will be charged at the hourly charge out rate
of the grade of staff undertaking the work at the time the work Is undertaken
Information about current charge out rates is set out below The Administrators also
propose that they are permitted to charge what are known as category 2 expenses
Information about category 2 expenses ts also set out in the “Practice Fee Recovery
Policy For RMT” at Appendix III
The approval of the basis of the Administrators’ remuneration and category 2
expenses forms part of the proposals for which approval is being sought that are set
out at Section 7 above, but if a creditors’ committee is appointed at the forthcoming
meeting of creditors then we will seek approval from that committee instead
To the date this report is prepared, our time costs amount to £93,660 25, representing
421 45 hours work at an average charge out rate of £222 23 Appendix II! contains
Information about our remuneration as Administrators and expenses incurred,
including the total time spent on the affairs of the Company for the period from when it
entered Administration to the date of these proposals, and the cost of that time based
on the charge out rates of the staff undertaking the work
A description of the routine work undertaken and to be undertaken in the
administration is as follows
1 Administration and Planning
¢ Preparing the documentation and dealing with the formalities of
appointment
Statutory notifications and advertising
Preparing documentation required
Dealing with ail routine correspondence
Maintaining physical case files and electronic case details on CCH case
management software
Review and storage
Case bordereau
Case planning and administration
Preparing reports to creditors
Convening and holding meetings of creditors
2 Cashiering
e Maintaining and managing the Administrators’ cashbook and bank account
e Ensuring statutory lodgements and tax lodgement obligations are met
3 Creditors
Dealing with creditor correspondence and telephone conversations
Preparing reports to creditors
Maintaining creditor information on CCH case management software
Dealing with Retention of Title claims- identifying goods, reviewing Invoices
ACCOUNTANTS & BUSINESS ADVISORS
MAKING BUSINESS MAKE SENSE
4 Investigations
Review and storage of books and records
Prepare a return pursuant to the Company Directors’ Disqualification Act
Conduct investigations into suspicious transactions
Review books and records to identify any transactions or actions an
administrator may take against a third party in order to recover funds for the
benefit of creditors
5 Realisations of Assets
e Corresponding with debtors and attempting to collect outstanding book
debts
e Liaising with the company’s bank regarding the closure of the account and
repayment of debtor receipts paid in
¢ Trading the business including dealing with customers, suppliers,
employees and other creditors
e Dealing with the negotiation and sale of the business
¢ Dealing with the sale of assets generally
We subcontracted some of the work we are required to undertake as Administrators,
namely the marketing of the business and assets for sale This work was sub-
contracted to Baker Tilly who were the Company’s auditors and therefore having
knowledge of Company were able to appropriately expose it to the market whilst the
Administrators traded the business Baker Tilly charged £6,937 50 plus VAT plus
disbursements of £24 00 for undertaking this work
We will arrange for our tax department to undertake some of the work that we are
required to undertake as Administrators, namely the corporation tax return We are
satisfied that taking this approach will ensure that the best value and service will be
provided to creditors This work remains to be done as the year end of the company
is 31" December -
Our expenses to 9! January 2014 amount to £352 40 We have not drawn any
expenses in this matter to date
The following expenses have been incurred but have not yet been paid
Type of expense Amount of expense accrued to date Amount stillto be paid
Company Search £5 00 £5 00
Type of category 2 disb_ Amount of expense accrued to date Amount still to be paid
Travel Expenses £347 40 £347 40
“ACCOUNTANTS & BUSINESS ADVISORS
MAKING BUSINESS MAKE SENSE
The following agents or professional advisors have been utilised in thts matter
Professional Advisor Nature of Work Fee Arrangement
James Sutherland Valuation and sale of
(Auctioneers) Limited plant and machinery % of realisations
WardHadaway Law Firm Contracts for sale of Time Costs
; Business and general
~ Legal advice
Baker Tilly Marketing Business Time Costs
For sale
The choice of professionals was based on our perception of their ability to perform
this type of work, the complexity and nature of the assignment and the basis of our
fee arrangement with them The fees charged have been reviewed and we are
satisfied that they are reasonable in the circumstances of the case
The hourly charge out rates of RMT as at 1“ August 2013 are, Director £300, Head of
Recovery & Insolvency £265, Manager £245, Administrator £115-£165 The rates are
reviewed annuaily on 1* July
Information about current charge out rates and expenses are set out in Appendix SII
under the heading “Practice fee recovery policy for RMT” which includes website
details where creditors can obtain the “Creditors Guide to Fees” which contains
guidance notes covering the basis of Administrators’ fees
13. Pre-appointment fees and expenses.
The Directors of the Company instructed us to assist them in placing the Company in
administration on 11/11/2013 They agreed that we should be paid our pre-
appointment fees and expenses We attach at Appendix VI a detailed time cost table
showing the pre-appointment time costs incurred by category and staff grade at RMT
The following work was undertaken
¢ Meetings with the Directors — reviewing the Company’s financial position,
discussing options for the Company, its creditors and the best way forward
e Liaising with HMRC with regards to the winding up petition — correspondence
and discussions with regards to withdrawing the winding up petition
¢ Dealing with the Landlord’s walking possession — legal advice to the Directors
on allowing the landlords agents entry to premises, and assets which were
subject to the chattel mortgage
Reviewing implications arising in relation to employees
¢ In addition to our own time costs, WardHadaway Law Firm also incurred pre
appointment costs of £7071 00 plus VAT The solicitors were chosen for their
expertise in insolvency, employment and property law
ACCOUNTANTS & BUSINESS ADVISORS
MAKING BUSINESS MAKE SENSE
The following statement sets out our pre-appointment fees and expenses incurred
The statement also shows those fees and expenses that were paid prior to the
administration and those where approval is being sought to pay them from
administration funds
Description Paid pre-appointment To be paid (ex VAT)
£ £
Administrators’ remuneration - 17,588 50
Legal fees - 7071 00
Total - 24,599 50
If a creditors’ committee is appointed at the meeting of creditors, we will initially seek
approval from the committee for payment of the pre-appointment fees and expenses
that have not yet been paid If the committee does not approve those fees, or it
approves the fees at a level that we feel is insufficient, we may seek approval from a
further meeting of creditors or failing that, from the court
If a creditors’ committee is not appointed, then since the pre-appointment fees and
expenses that have not yet been paid cannot be approved within these proposals we
wil be seeking a separate resolution to approve them at the meeting.
14. Approval of proposals
A meeting of the Company's creditors has been called pursuant to paragraph 51
Schedule B1 of the Insolvency Act 1986 and a notice of this meeting to be held on
30" January 2014 at 3 00pm ts enclosed with this report (FORM 2.20B)
This meeting 1s to consider and approve (or otherwise) the Administrators’ proposals
and if appropriate appoint a creditors’ committee Creditors should note that other
resolutions may be considered and passed at the meeting, including the agreement of
the Administrators’ pre-appointment costs and expenses noted at Section 13 above
These resolutions are detailed on the proxy form attached to the notice of the
meeting
The meeting of creditors will be given the opportunity to appoint a creditors’
committee A committee is made up of between three and five representatives of
creditors who will then meet us on a regular basis to discuss the administration of the
company If a committee is appointed then it will be for them to approve our
remuneration and category 2 expenses If a committee Is not appointed then approval
of our remuneration and category 2 expenses will be considered as part of these
formal proposals
Creditors can either attend the meeting in person, by electronic means or by
completing the enclosed proxy Form If creditors wish to attend electronically they
should contact Emily Mitchell to arrange this
ACCOUNTANTS & BUSINESS ADVISORS
MAKING BUSINESS MAKE SENSE
15. EC Regulation on insolvency proceedings.
We consider that the EC Regulation on insolvency proceedings applies to the
administration of the Company and that these are main proceedings as defined in
Article 3 of the EC Regulation because the Company’s registered office and its
trading address is/are in the United Kingdom
16. Administrators’ Investigations
We have a duty to consider the conduct of those who have been directors of the
Company at any time in the three years preceding administration We are also
required to investigate the affairs of the Company in general in order to consider
whether civil proceedings should be taken on its behalf We should be pleased to
receive from you any information you have that you consider will assist us in this duty
We would stress that this request for information forms part of our normal
investigation procedure
17. General
Should creditors require any further information, please do not hesitate to contact
Simon Stephenson or Emily Mitchell at this office
Yours fatthfully
For and on behalf of
Tanfield,Engineering Systems Limited
Anthony\Alan Josephs & Linda Ann Farish
Joint Administrators
AA Josephs and L A Farish are licensed in the United Kingdom to act as Insolvency Practitroners by the
Association of Chartered Certified Accountants
Rule 2.33 Form 2.17B
The Insolvency Act 1986 2 7 1 B
Statement of administrator’s proposals
Name of Company. Company number
Tanfield Engineering Systems Limited “| 03808437
In the Court case number
Newcastle upon Tyne 1123 of 2013
(full name of court)
(a) Insert full We (a)
name(s) and Linda Farish Anthony Josephs
address(es) of RMT Gosforth Park Avenue RMT Gosforth Park Avenue
Newcastle upon Tyne NE12 8EG Newcastle upon Tyne NE12 8EG
administrator(s)
“Delete as attach a copy of “my/our proposals In respect of the administration of the above Company
applicable
A copy of these proposals was sent to al known creditors on 13" January 2014
Signed t
Joint / Administrators)
TANS:
Contact Details
You do not have to give any contact
information in the box opposite but if Gosforth Park Avenue
Newcastle upon Tyne NE12 8EG
you do, it will help Companies House to
contact you if there is a query on the
form
The contact information that you give
will be visible to researchers of the Tel 0191 256 9500
public record
When you have completed and signed this form, please send it to
the
Registrar of Companies at -
Companies House receipt date barcode | Companies House, Crown Way, Cardiff CF14 3UZ DX 33050
Cardiff
Appendix |
Statutory Information
Company Information
Company Name Tanfield Engineering Systems Limited
Previous Name HMH Sheet Metat Fabrications
Trading Names Tanfield Engineering Systems Limited
Registered Number 03808437 |
Date of Incorporation 16/07/1999
Trading Address Tanfield Lea industrial Estate North, Stanley
County Durham DH9 9NX
Registered Office RMT Accountants & Business Advisors
Gosforth Park Avenue ‘
Newcastle upon Tyne NE12 8EG
Former Registered Office Vigo Centre, Birtley Road, Washington NE38 9DA
Principal Trading Activity Manufacturing
Directors and Shareholders
Company Directors Charles Brooks, Darren Kell, Michael Wright, Mark
Hutchinson & Roy Stanley
Company Secretary Charles Brooks
Share Capital
Authorised Allotted, called up and fully patd
880,000 ordinary shares of 1p each 880,000 ordinary shares of 1p each
951,600 deferred shares of £1 each 951,600 deferred shared of £1 each
Shareholder Tanfield Group Pic
Chargeholder Details
Chargeholder (Fixed) State Securities plc Date of Charge 19/10/2011
Registered on 27/10/2011
és.
Appointment Details
Joint Administrators’ 22 November 2013
Date of Appointment
Appointment made by Directors
Court Name & Address Newcastle upon Tyne County Courts
Quayside, Newcastle
Court Reference 1123 of 2013
Joint Administrators Appointed Linda Farish
IP Number 9054
Anthony Josephs
IP Number 9054
Joint Administrators’ Address RMT
Gosforth Park Avenue
Newcastle
NE12 8EG
Joint Administrators’ Functions In accordance with Schedule B1, Para 100(2) of The
Insolvency Act 1986, the functions of the Administrators
are to be exercised by either or both of them
Rule 229 Form 2 14B
Statement of affairs
Name of company Company number
Tanfield Engineering Systems Limited 03808437 ]
In the Court case number
Newcastle upon Tyne 1123 / 2013
Statement as to the affaiis of
(a) Insert name and
address of registered Tanfield Engineering Systems Limited
office of the company
of
RMT Gosforth Park Avenue, Newcastle upon Tyne NE12 8EG
(B) Insert date
on the 22nd day of November 2013, the date that the company entered admmustration
Statement of Truth
1 I believe that the facts stated in this statement of affaurs ararea full, true and complete statement of
the affairs of the ab ove iat
entered admmustration
Full name Brooks, Charles
Dated Spec Ais
Tanfield Engineering Systems Ltd (company no 03808437) Statement of affairs
A- Summary of assets
Estimated to
Book value realise
Assets subyect to Security’
Plant and Machinery 71,199 71,199
Less Due to State Security (139,941) {139,941}
Surplus/Deficiency (68,742) (68,742}
Assets not sublect to Security
Plant and Machinery 28,415 28,415
Office Furniture 11,437 11,437
Debtors 672,392 575,076
Stock and WIP 156,221 78,111
Property 462,223 270,000
Total assets available to preferential creditors 1,261,947 825,555
Al - Summary of liabilities
Total assets available to preferential creditors 1,261,947 825,555
Liabilities due to preferential creditors (573) (873)
Estimated surplus (deficiency) as regard to preferential creditors 1,261,375 824,982
Unsecured non-preferential claims
Trade creditors including utilities (341,363) (341,363)
Other creditors (156,516} (156,516)
HMRC liabilities (PAYE, NIC & VAT) (412,133) (412,133)
Associated creditors (394,434) (394,434)
Estimated surplus (deficiency) as regard to non-preferential creditors (43,071) (479,463)
Share capital
Deferred (951,600) {951,600}
Ordinary (8,800) (8,800)
Estimated surplus (deficiency) as regard to members {1,003,471) (1,439,863)
Signature Date Spec Aol3
‘The Amar! Cred? Centre ‘Waters Meeting Road
AcToOL ADVANCED CUTTING TOOLS 2 TELFORD CLOSE SALTWELL BUSINESS PARK GATESHEAD ‘TYME ANO WEAR, NESSES 5086.94
anvoo. ADVANCED CUTTING TOOLS A TEFOROQOSE SALTWELL BUSINESS PARK. GATESHEAD TENE AND WEAR, NEISES suataa
‘AROOL ADVANCED CUTTING TOOLS A TELFORD CLOSE SALTWELL BUSOHESS PARK GATESHEAD TYME AND WEAR NES5B6 460.93]
AMT AUAIT METAL FINISHING WHUOIELD DAVE AYCUFFE IND EST COUNTY DURHAM, ots dau 6127
APE COMPORENT FORCE LTD UNITS A 68 BIRLING PLACE BINS veNT 14829 5181 93 00
ARCO. dea Ute PORE Tundry Way Chainbeidgedndustriat Gxtata Blaydan Tyne & AVear NE?1 Si 315.37]
antaoaL AXMAGRIP ADVANCE HOUSE ‘ONNTERN INOUSTRAL ESTATE, aNCTEAN CO.DURKAM DUT 50) 100093
TaD? ALTO ONESEL (NEWCASTLE) ST LAWRENCE ROAD NEWCASTLE UPON TYNE ECLA 158.16
ON Ope tHoptcal 32 Main Street Gaecrook Tyne baer ta an n1ai9
s0¢ Bor PO BOX 12 PRIESTLY ROAD Wenley Manchester Maze aus 940850
soriom HOTTOMUNETECHNOLOGIES LTD 395 CHATHAM STREET READING AERSKHIRE ROL wo24p
SKIER LL BRERLEY LIFTING TACKLE CO {TD TIMMISROAD Wr STOURBRIOGE WEST MIDLANDS ov9780: a6
om Sriush Telecoms, AT Telzphone Peyrent Cente = TIE Gateshead E82 6 139.08
hw Hoox HANGON LTD USNTWAROINE CRAVEN ARMS SHROPSHIRE sv7 Ona! 47%
CORUSHOT CORUS HOT ROLLED PROCESSING, ‘OUDFELD LANE, AemDs, tiz4pH] [19.268 831
nom Cromadex Unit $ Redwood Dusinass Park Oldbury Road Saitek, West midlands Bee 14 615628
Ceoweh Crowther Engineering Umited $2 Hutton Clase Crowther industtal Estate Washington ‘Tyne & Wear NES AH 5526.00]
cusoo2 CUSTOAt SRAXES & HYDAAUUCS UNIT? HOLBROOK NSE HOLBROOK INDUSTRIAL ESTATE SHEFFIELD s2F6 3518
boc Oerwentside Oksteict Council CMe Conure Concett ‘CoDutham, OESIA ez
DEBENHAM WQOGHT FRANK LLP CUENT RUST NCRENEWCASTIERAM DEPT — STANHSQUAY 218 QUATSIOE NEWCASE HEL 308! mu
DHL EX OHL International (UX) itd PO Bon526 Hounsou Middierax Tw a7 1,199 65
DUDLEY USERTUSE unre AUTOBASE INDUSTIUAL PARK TIPTON ROAD TIIDALE ‘OLDBURY WEST BIOS tes 3Hul gare
OuMOP H ANGUS POWERSEND PENNWELL IND ESTATE SUNDERLAND SRA SEH yea3.93]
ENHANCE URHAACEORY CLEANING 12. CHUACH STREET SEAHAM, CO DURHAM SR77HQ 155.00]
ENVIROCARE MAINTENANCE SOLUTIO. © NEWINN FARM DAWSON LANE HEARD LANCASHIRE reas spe $22.0]
Grvoon Halesowen West Midlands te2ewe a1 07
ERO nies industrial Soretces fad Aecebables Team Amber Wey
Tallen Read Hutton, trentwood Enex, 433 31 12655
O35 Frsex Hinge Co.Ltd, DIL 2NG: 1 650.00]
EVER EVERGREEH PALLET SOLUTIONS, UNITS 6427 ‘ALEEXT HRLL INDUSTRIAL ESTATE oaRUNGTON
Untt 20 North of England BIC Wearfles Sunderland $952TA! rie
feat Flact Senviens North fost Totton Seutharmaton sos WW 1.207 48
GaLooL GatxC Coobng Services ltd Unit 3 Lubworth Business Centre Nutwood Way
Gen Bea Gaoding, Gefan Houre Carista Street, Feting, Gatesheud KEL LO 3,285 60
GEE Trneand Wear NEST 17 $485.77
Hoccs Fu Hoges Atasting & Rinishing Fat 10. Armunrong Road Ammstcors lachetutal Estate Washington
WUBRERT STREET \WHITEHILL SHDUSTRIAL ESTATE sTOCKPONT SKA INS 21978
Horwoop ROY HOPWOOD FASTENERS £TD COUNTY QURHAM Dizs 6x 287 00)
us INOUSTRIAL ANODISING SERVICES UNITS 12,13 & 14 KUMNS CLOSE SOUTH CHURCHINOUSTRIAL ESTATE BISIROP AUOQAND
22. BURLEY RO, OAKHAM, RUTLAND, 1€15 GDH 1201 30
bad II UK UNITED, Metherton Rosd Glasgow o13.1eu 1,772.06
Jet Jet Engineering Plastics Vnit 13674 Anolestand Vitlays Bus, Park.
Unit 5 Vance Court Tranabotannds industrial Esta Sayden Tyneand Weer Ne22 SUH 13.20
JOE Practsion Sta & Tool tid Mtantey Cowaty Outham DMs out 12.00)
Xen Thom fen Thomas Lid ‘The Old Brickworks Tanselé 1230817
UNTT3S0 PAULIOUIND ESTATE EUROPEAN WAY PALUION SUNDLAAND SRA 6S
hen WEENGATE INDUSTRIAL & WELDING Tyre & Weer NER aPU) 643799
Lees (aes Cleaning Contractors LUP 43 Maxwell Street South Sheitds 021.20
UNerc2 OcKsiCe ANCHOR BROOK IHO PARK = -SVEST MIDLANDS ws 8rq|
in {EKTRONO O16 1sy| 1,084.56
ucoaz on Springs Ltd Sumner Street Rochdale NEL 2PU 37451]
Lowoo1 towves HALL ITD 2B UAE STREET 0 NEWCASTIEOH THE
Shelley Rosd Newourn industria fstate Meweastle Upon Tyne HEIs 9nt 7.849 03)
Mas M&S Distributton (td NewbornInd Est Newxartle Upon Tyne. EAS 9RT| 6242 29]
Ma paec MB PRECISION ENGINEERING Une a Preserve Warks 479817
MERIDIAN METAL TRADING MERIOIAN HOUSE GRAZEBROOK INDUSTRIAL PARK PEARTREE LANE ovotey
sCDIAN SnTON aucay v2 IND 165.60)
MEO METAL SUPERMARKETS UK LTD 18 MUN STREET BLATOON TYTE& WEAR NEIL STR: 463.43
NOASTAT NORTHERN STATIONERY 110 unm? @LAYDOW TRADE PARK TOUARIOGE ROAD
SILKWWOOD AUSINESS PARK FRYERSWAY OSSETT, WEST YORKS Wes 53 2.376 09)
WOSTEEL MURRAY PLATE GROUP 1TD. UNITS NGI? 7A 10,670.30)
NoTDo2 Nottingham Zne Greup towmoor Business Park Nickyin Ashfield Nottingham
MORTON STREET BYKER NEWCASTLE UPON TYNE HEB 21H 7a152i
PATO PATTERSON AYAN WIREWORKERS THE CITY WIRE WORKS ‘Tyne and Wear E31 180) {12 coy]
PHOENEC Phoentx Steel Unit 12 Ashworth fraser Estate Station Road Hebburn
OUTS WESTOH IOUISTRIL ESTATE CAERPHILLY 533 167 408513
‘STANFIELD QUSINESS CENTRE “ADDISON STREET ‘SUNOEMANS SIZES] t
planet PLANET WLUOING user 6 Wansteinhire vs ent 3233 61
Systronde UK United 6 Wayside Business Park Wikons Lane Coventry
Pufimae Dayka Rood Cheltunhom Gis 2AM 4 Daga4)
RADAH Planit software Lid Hadley House n#12 Ba! 369-46}
rari RAPID ENGINEERING NORTH EAST UNTTa9) Hu IEDRURGH COURT ‘TEAM VALLEY TRADING ESTATE GATESHEAD
PRINCESIND PARK NICHOLLS ROAD TFTON WEST MIDLANDS bys 916 350.08
nsngoa ANINOCOAT UMSTED UNITE 9 , Ate 7¥B 1264
NCOH Keo UX id Ricoh House 4 Reshmills Northampton
Corby Nocthants N17 5U8) 391291
BASCOM RS.Components tried FO Bex 838 s4ay 1.16039
ASH AUBBER SAFETY HYGIENE ITD ENTERPRISE WORKS THUNSLEY STREET SHEFFIELD
Dukinfietd Oveshite sxe 4ut| 2,061.91
Ryder Ryder tagtsties Oukinffeld Acet Ctr Globe Lane DH? SHE qaz7ta
SAFE AND SURE AIRE PROTECTION UNTTZ, MILAN, LANGLEY MOOR SUAHAM
AE Und 44/45 Drambead Road Shorey North Lancashire 9X6 78X 600.00}
satcot SAL Abrasha Tech, Group let ‘Abrashe Obvidhan NELSB 6051 75)
sort Seatt Engineecing, Unit 22 Gatti Road, Felling Shora ind Est Gateshend,
TEAM VALLEY TRADING ESTATE GATESHEAD TYNE AND WEAR NEIL OMX $85.50)
SEV SEV AERIAL ACCESS, Mangisway M22 558 3,797 34
SHEL Shel thd, fewkndswey, Wythenshawe, Manchester
dyren Steet ME, Mijuright Steet leeds 2706 (Lasay
SHORES AShores & Co, shikion Co Duthem ou 2a 12,376,241
ume ‘Shildon Manufacturing Company rat 18 Oabbés Duck lod Est WES 300) 2,505 70)
‘Spartan Lubricants United Ont 45 ings Walk South Kirky Pontefract
SPARTON WASHINGTON HER SDE 161 09}
SPRAY SPRAYGUN CLEANING SERVICES 16 HARTHORPE CLOSE RIQUETON 16 7AY 83522
Staples Stationary Staples Advantage Tameside Drive Halford Siminghan
STA0O1 CeWsauRY WEST YORKSHIRE wa13 200) mt
taysid TAYLOR STUDWELDING SYSTEMSETD COMMERCIAL ROAD ait 1XF| toss}
tale Virgin tAedta Payments [tal 90 Bor 4453 ‘Worthing DH IHR 500 09}
THooo1 Thamas Madrail Chartered Surve 1 New Street Sherburn Outham
PO.Boa4 Rantibottom tance, er 185-78]
TH TAT press Ux id, TAQ Kely Johason BO 96R| 420)
THTNTER TNT INTERNATIONAL PO Ox 186 RAMSBOTTOM BuRY
Noyfiawee Cose, Chandlers Ford ind Est. Eorttelgh Hants, SOS3 AAR 23 43}
OWEN Yewer Machine Tools itd, TIFTON, WARLEY WEST MIDLANDS 369 340 13212
TueEs TURES UK UNIT 8 AUTOBASE IND PARK TPTON ROAO, TIVIDALE NEDB ONL 2050.00
Teo, Tynamat College Battle #50 OF Wassleend Tore & Weer
Mil suet Srferley 16D West Midlands SHEFFIELD YS 25K 276
VAN LEEU Van Leeuwan Whevles itd Mina lock Works STOCKTON a7 m2; 87.29)
vo VINEN SURFACE TREATMENTS UD TA JAY AVENUE ‘TEESIDE WD EST THORAARY
14 SEDUNG ROAD WEAR INDUSTRIAL ESTATE WASHUNGTON TYNE SWEAR eae saz 17,944 44
washingt WASHINGTON WATERIET ITD BLAYDON, TYE & WEAR NED STR 3,765 694
WATER NORTHERN STATOREAY LTD unit BLAYDON TRADE PARK TOLBRIDGE ROAD.
38 SEDUNG ROAD ‘WEAR INDUSTAIAL ESTATE WASHINGTON TYNE AND WEAR NESS 9BZ 43,315 4a
WEARSIOE WEARSIDE PRELIAATICS Greater Manchester M7 486) saeri 39]
Weloma Waleome Estates Lte 7 Stanley Road Satford 104459
STRUNG ROAD, SOUTH MAASTOU IND EST SVANDON. sna ara)
wise WILSON TOOL NEWCASTLE UPON TYNE ESS ANR|___ 103,609.17)
was WRG STEEL SERVICES REWSURN FORO HOUSE NEY/DURH BRIDGE ROAD 341,387 88
Total Trade creditors
Othergeditors: ErRTIN]
MRE [vat and PAYE/HIC) 139.940 23]
‘State cecuntles finance tease balance 154424.41]
Tanfield Group PLC working capteloan, 72.66
Payroll deductions 35651554
Accounting accruals 7 203,596 32
Total Other treditors
1 484,958.50
‘TOTAL LAMILITIES
Crow S pec 2ols
RMT
TIME & CHARGEOUT SUMMARIES Tanfield Engineenng Systems Limited
To 09/01/2014
[HOURS
(Classification Of work Partner Manager ‘Other Senior Assisiants & Total Hours Time Cost £ ‘Average Hourly
uncon: Professional Suppor Staff Rate £
Administration & 000 22.70 ooo 32.70 $5 40 10,910 00 196 93|
Planning
Reaksation of Assets 440 5810 000 2690 86 40 20 864 00 23106
Trading 2080 156.00 ooo 6420 244 00 §5 589.00 230 66
Creditors 000 730 aa 2835 35 65 8297 25 176.84
Investgatons 000 000 00 000 000 000 900
Preferential Creditors 000 000 000 000 000 000 000
Total Fees Clamed £ 7560 00} 61770 5 on 24329 75: 9B 660 25
Total Hours 25.20 24410 000 15215 421 45
Average Rate. 300 00 25305 on 159 94
PRACTICE FEE RECOVERY POLICY FOR
RMT Accountants & Business Advisors Ltd (“RMT”)
Introduction
The insolvency legislation was changed in April 2010 for insolvency appointments
commenced from that time in order to allow more flexibility on how an office holder’s fees
are charged to a case This sheet explains how we may apply the alternative fee bases
The new legislation allows different fee bases to be used for different tasks within the same
appointment The basis or combination of bases set for a particular appointment are subject
to approval, generally by a committee if one is appointed by the creditors, failing which the
creditors in general meeting, or the court Further detail about how an office holder’s fees
are approved for each case type are available in a series of guides issued with Statement of
Insolvency Practice 9 (SIP 9) and can be accessed at wwwr3 orguk Alternatively, if
creditors require any assistance or a hard copy of the guide please contact me
Once the basis of the office holder's remuneration has been approved, a periodic report will
be provided to any committee and also to each creditor The report will provide a breakdown
of the remuneration drawn and time costs incurred and will also enable the recipients to see
the average rates of such costs Under the new legislation, any such report must disclose
how creditors can seek further information and challenge the basis on which the fees are
calculated and the level of fees drawn in the period of the report Once the time to challenge
the office holder's remuneration for the period reported on has elapsed, then that
remuneration cannot subsequently be challenged
Under the old legisiation, which still applies for insolvency appointments commenced before
6 April 2010, there is no equivalent mechanism for fees to be challenged
Time cost basis
This ts the basis that we use in the majority of cases and we use charge out rates
appropniate to the skills and experience of a member of staff and the work that they perform
This is combined with the amount of time that they work on each case, recorded in 6 minute
units with supporting narrative to explain the work undertaken
Chargeout Rates
Grade of staff Current charge-out rate per| Current charge-out rate per
Recovery & | hour, effective from 1“ August | hour, effective from 1° July
Insolvency 2013 £ 2012£
Director 300 00 300 00
Head of Recovery 265 00 260 00 >
Manager 245 00 240 00
Senior Administrators | 165 00 160 00
Administrator/Cashier ) 115 00 110 00
Where necessary and appropriate, members of staff from other departments of the practice
will undertake work on acase They will be charged at their normal charge out rate for
undertaking such work
Grade of staff Current charge-out rate per Current charge-out rate per
Tax Department hour, effective from 1* August hour, effective from 1% July
2013 £ 2012 £
Director 200 00 155 00
Head of Tax 95 00 85 00
Tax Advisor 48 00 46 00
These charge-out rates charged are reviewed on 1* July each year and are adjusted to take
account of inflation and the firm’s overheads
Time spent on casework !s recorded directly to the relevant case using a computerised time
recording system and the nature of the work undertaken 1s recorded at that time Each unit
of time ts 6 minutes The work is recorded under the following categories
° Administration and Planning — which includes work such as planning how the case
will be administered and progressed, the administrative set up of the case, notifying
creditors and others of the appointment, keeping the records relating to the case up
to date, and reporting on progress of the case to creditors and others
° financial affairs of the company and bankrupt, undertaking a detailed investigation
with a view to making recoveries for the benefit of creditors where matters such as
preferences or wrongful trading come to light as a result of the initial review, and
reporting to the Insolvency Service on the conduct of the directors
. Realisation of Assets - which includes work such as identifying, securing and
insuring assets, dealing with retention of title claims, collecting debts owed, and
selling assets
. Employee matters -— which includes work such as dealing with employees, and
liaising with the redundancy payments office
e Creditors - which includes work such as communicating with creditors, dealing with
creditors’ claims, and where funds realised allow, paying dividends to creditors
. Trading — which includes work such as managing and controlling all aspects of the
business, and preparing financial records and information relating to that trading
Percentage basis
The new legislation allows fees to be charged on a percentage of the value of the property
with which the office holder has to deal Different percentages can be used for different
assets or types of assets Where we would like to realise any asset or type of assets on a
percentage basis we will provide further information explaining why we think that this basis ts
appropriate and ask creditors to approve the basis
Fixed fee
The new legislation allows fees to be charged at a set amount Different set amounts can be
used for different tasks Where we would like to charge a set amount for a task or different
set amounts for different tasks we will provide further information explaining why we think
that this basis ts appropriate and ask creditors to approve the basis
All basis
The officeholder’s remuneration invoiced to the insolvent estate will be subject to VAT at the
prevailing rate
Agent’s Costs
Charged at cost based upon the charge made by the Agent instructed, the term Agent can
include
e =Solicitors/Legal Advisors
e Auctioneers/Valuers
* Accountants
e Quantity Surveyors
« Estate Agents
e Other Specialist Advisors
Disbursements
In accordance with Statement of Insolvency Practice 9 (SIP9) the basis of disbursement
allocation in respect of disbursements incurred by the Office Holder in connection with the
administration of the estate must be fully disclosed to creditors Disbursements are
categorised as either Category 1 or Category 2
Category 1 expenses are directly referable to an invoice from a third party, which ts either in
the name of the estate or RMT, in the case of the latter, the invoice makes reference to, and
therefore can be directly attributed to, the estate These disbursements are recoverable in
full from the estate without the prior approval of creditors either by a direct payment from the
estate or, where the RMT has made payment on behalf of the estate, by a recharge of the
amount invoiced by the third party Examples of category 1 disbursements are statutory
advertising, external meeting room hire, external storage, specific bond insurance and
company search fees
Category 2 expenses are incurred by the firm and recharged to the estate, they are not
atinbuted to the estate by a third party invoice and/or they may include a profit element
These disbursements are recoverable in full from the estate, subject to the basis of the
disbursement charge being approved by creditors in advance Examples of category 2
disbursements are photocopying, Internal room hire, internal storage and mileage
It is proposed that the following Category 2 disbursements are recovered
Room Hire £30 00
Mileage at HMRC rates
Storage £3 per box per quarter
Photocopying 15p per sheet
Further Information
An unsecured creditor may, with the permission of the court or with the concurrence of 5% in
value of the unsecured creditors (including the creditor in question) request further details of
the office holder's remuneration and expenses, within 21 days of receipt of this report Any
secured creditor may request the same details in the same time limit
An unsecured creditor may, with the permission of the court or with the concurrence of 10%
in value of the unsecured creditors (including the creditor in question), apply to court to
challenge the amount and/or basis of the office holder's fees and the amount of any
proposed expenses or expenses already incurred, within 8 weeks of receipt of this report
Any secured creditor may make a similar application to court within the same time limit
Or in a Members Voluntary Liquidation,
A member may, with the permission of the court or with at least 5% of the total voting nghts
of all the members having the right to vote at general meetings of the company request
further details of the Liquidator’s remuneration and expenses, within 21 days of receipt of
this report
A member may, with the permission of the court or with at least 10% of the total voting nghts
of ail the members having the nght to vote at general meetings of the company, apply to
court to challenge the amount and/or basis of the Liquidators fees and the amount of any
proposed expenses or expenses already incurred, within 8 weeks of receipt of this report
Profit and Loss (Trading): LT6000 - Tanfield Engineering Systems Limited In
From: 22/11/2013 To: 13/01/2014 (Accrual Basis)
£
Post Appointment Sales (Trading)
Sales 156,939 52
Totat Post Appointment Sales (Trading) 156,939 52
Purchases
Purchases (63,875 28)
Total Purchases (63,875 28)
Gross Profit 93,064.24
Trading Expenditure
CSA/AOE payments (698 07)
Carnage (9 95)
Charity Contributions (Employees) (35 59)
Employees Health Cover (246 81)
Lease /HP Payments (6,138 89)
Lock Changes (378 44)
PAYE & NI (18,339 80)
Pension Contributions (2,247 38)
Purchases (1,904 42)
Repairs & Maintenance (1,266 98)
Sundry Expenses (433 05)
Union contributions (352 60)
Utilities (33 00)
Vehicle Running Costs (1,826 38)
Wages & Salaries (60,109 16)
Total Trading Expenditure (94,020 52)
Net Trading Income (956.28)
Net Income: {956.28)
13/01/2014 6 07 PM
Receipts and Payments Abstract: LT6000 - Tanfield Engineering Systems Limited In Administration
Bank, Cash and Cash Investment Accounts: All Dates
SOA Value £ £ £
POST APPOINTMENT TRADING
Trading Deficit (81,878 08)
(81,878 08)
FINANCE AND HIRE PURCHASE AGREEMENTS
000
71,199 00 Leased Assets
Leased Assets (Amounts Owing) 000
(139,941 00)
. 000
ASSET REALISATIONS
10,263 74 Administrators Orders 10,263 74
000 Bank interest Gross 001
575,075 86 Debtors (Pre-Appaintment) 486,170 67
270,000 00 Freehold Land and Property 000
000 Goodwill 19,994 00
000 Licence Fee - SEV Group Ltd 5,000 00
000 Licence Fee - Welcome Estates 47,500 00
000 Metal and Waste Recycling Revenue 3,926 69
000
11,437 00 Office Furniture
28,415 00 Plant and Machinery 100,000 00
78,111 00 Stock & Work In Progress 112,833 15
785,688 26
COST OF REALISATIONS
000 Bank Charges (370 19)
000 Deferred Consideration (30,000 00)
0.00 Legal Fees (20,180 00)
000 Licence Fees On Premises (52,500 00)
000 Wage Deductions - Sale Of Business (58,264 00)
000 Waiking Possession Settlement (5,000 00)
(166,314 19)
PREFERENTIAL CREDITORS
000
(22,874 12) Holiday Pay
000
(29,041 10) Wages
000
UNSECURED CREDITORS
000
(365,444 84) Employees
HM Revenue and Customs 000
(412,133 08)
Trade and Expense Creditors 000
(368,403 47)
000
EQUITY
000
(951,600 00) Deferred
(880,000 00) Ordinary 0 00
000
(2,124,936 01) 537,495 99
——
REPRESENTED BY
Cash at Bank 529,042 60
Payables 5,222 82
Petty Cash Account 56 08
VAT Recewable (Payable) 3,174 49
537,495 99
13/01/2014 6 08 PM Page 4
APPENDIX VI
Administrators’ Pre-Appointment
Time Costs and Expenses
RMT
PRE-APPOINTMENT TIME & CHARGEOUT Tanfield Engineenng Systems Limited
To 09/01/2014
HOURS |
Classification Of work Parner Manager Other Senior Assistants & Total Hours: Tume Cost £ Average Hourty
Function Professional Support Staff Rate £
Acmmustration & 000 000 900 000 900 000 9.00)
Planning
Reafisation of Assets 440 5910 000 760 7110 17 588 SO 247 37
Tradmg 000 000 000 aco 900 900 000
Creditors. 000 000 900 000 000 000 0 00}
Invesigations 000 000 000 0.00 000 000 000
Total Fees Clamed & 1.320 00 16 039 50 0 4,229 00] 17,588 50)
Total Hours 44 5910 000 760 7410
Average Rate 300 254 47 000 16171