Joint Liquidators’seventh annualreport
Local Contract Hireand Leasing Limited(in liquidation)
For the period from 18 March 2016 to 17 March2017
www.pwc.co.uk/lch
24 May 2017
Our ref: RC/SA
Joint Liquidators’ seventh annual report
Local Contract Hire and Leasing Limited (in liquidation) 2
To all known members and creditors
24 May 2017
Dear Sir/Madam
Local Contract Hire and Leasing Limited – in creditors’ voluntary liquidation (the Company)Formerly trading from: 15 – 17 Walter Street, Leeds, LS4 2BB
This is our seventh annual report to members and all known creditors in the above liquidation for the periodfrom 18 March 2016 to 17 March 2017.
If you have any queries in connection with this report, please contact Sandra Andrews on 0113 720 4926.
Yours faithfully
M D A LoftusJoint liquidator
Mark David Arthur Loftus and Toby Scott Underwood are licensed in the United Kingdom to act as insolvency practitioners by theInstitute of Chartered Accountants in England and Wales.
The joint liquidators are bound by the Insolvency Code of Ethics which can be found at:https://www.gov.uk/government/publications/insolvency-practitioner-code-of-ethics.
The joint liquidators are Data Controllers of personal data as defined by the Data Protection Act 1998. PricewaterhouseCoopers LLP willact as Data Processor on their instructions. Personal data will be kept secure and processed only for matters relating to the liquidation.
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Local Contract Hire and Leasing Limited (in liquidation) 3
Definitions used in this report
Definition used Term
the Company Local Contract Hire and Leasing Limited
the Liquidators
we
our
Mark David Arthur Loftus
Stephen Andrew Ellis (to 8 March 2017)
and
Toby Scott Underwood (from 8 March 2017)
the prior Administrators
Mark David Arthur Loftus
and
Stephen Andrew Ellis
the lenders Various hire purchase lenders
Goldacre Goldacre (Offices) Limited v. Nortel Networks UK Limited – in administration
the Rules Insolvency Rules 1986
the Act Insolvency Act 1986
ICAEW Institute of Chartered Accountants in England and Wales
Table of contents
1. Introduction 5
1.1. Why we’re sending you this report 5
1.2. Change of liquidator 5
1.3. Estimated dividend prospects 5
1.4. Dividend to unsecured creditors 5
2. Progress made during the period 6
2.1. Assets realisations 6
2.2. Assets not specifically pledged to a creditor(s) 6
2.3. Motor vehicle account 6
2.4. Statutory and compliance 7
2.4.1. Tax and VAT 7
2.4.2. Annual report 7
2.4.3. Other statutory and compliance matters 7
3. Outcome for creditors 8
3.1. Secured creditors 8
3.2. Preferential creditors (mainly employees) 8
3.3. Unsecured creditors 8
4. Liquidators’ fees and other financial information 9
4.1. Our fees 9
4.2. Our disbursements 9
4.3. Creditors’ rights 9
4.4. Receipts and payments account 9
4.5. Statement of expenses 9
5. Meetings of members and creditors 10
Appendix A. - Statutory and other information 11
Appendix B. - Receipts and payments account for the period from 18 March 2016 to 17 March 2017 12
Appendix C. - Details of our remuneration and disbursements and other professional costs 14
Appendix D. - Statement of expenses for the period from 18 March 2016 to 17 March 2017 21
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Local Contract Hire and Leasing Limited (in liquidation) 5
1. Introduction
1.1. Why we’re sending you this report
This is our seventh annual report to members and creditors. It will help if you read this alongside our previousprogress reports.
This report provides a summary of:
The steps taken during the seventh year of the liquidation; Outstanding matters; and A provisional estimate of the outcome of the liquidation for unsecured creditors.
In Section 2 we provide more detailed information on what we’ve been doing during the period covered by thisreport and in Section 3 we provide information as to what the outcome for creditors might be.
By law, we have to give you certain statutory information, this is included in Appendix A.
1.2. Change of liquidator
Stephen Ellis, one of the previous joint liquidators, has left the firm. To ensure that outstanding issues in theliquidation continue to be pursued, an application was made to the Court to remove him and appoint TobyUnderwood as liquidator. Toby Underwood is licensed in the United Kingdom to act as an insolvencypractitioner by the ICAEW.
The application was granted and so Toby Underwood replaced Stephen Ellis as joint administrator with effectfrom 8 March 2017.
1.3. Estimated dividend prospects
% Recovery Forecast Timing
For preferential creditors:i.e. former employees (for unpaid wages up to £800 andholiday pay only) and unpaid pension contributions incertain circumstances:
100% Dividend paid
For unsecured creditors:i.e. all other creditors who are neither secured norpreferential:
This report: 2-4%Last report: 4-7 %
8 months
Please note this guidance on dividend prospects is only an indication. You shouldn’t use it as the main basis ofany bad debt provision that you may need to make.
1.4. Dividend to unsecured creditors
We have issued a notice of intended dividend to unsecured creditors. The last date for proving is 30 September2017. Creditors who have not submitted their claims should do so now. Claims received after 30 September2017 may be excluded from any dividend. A dividend will be declared by 31 January 2018.
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2. Progress made during the period
2.1. Assets realisations
We’ve realised the Company’s assets as follows:-
Actualrealisations
from 18 March2010 to 17
March 2016£
Actualrealisations
from 18 March2016 to 17
March 2017£
Estimated torealise per the
statement ofaffairs*
£
Assets specifically pledged
No specifically pledged assets were realised in the period - - -
- - -
Assets not specifically pledged to a creditor(s)
Administration surplus 1,728,875.33 - -Book debts 209,483.61 - -Freehold property 335,250.00 - -Distributions 56,775.27 - -Interest 65,323.39 - -IT licenses 600.00 - -Post-appointment trading sales 103,360.82 - -Refunds/rates & sundry 10,296.04 - -Legal settlement 1,300,000.00 - -Road fund licenses 301,405.00 - -VAT monies from Yorkshire Bank 94,993.66 - -Contribution to wages paid in the Administration 3,811.52 - -
4,210,174.64 - -
* No statement of affairs provided in the liquidation since the details were provided in the administration.
2.2. Assets not specifically pledged to a creditor(s)
In our last report we stated that that, of the sum of £36,000 held by our solicitors, £16,000 was due to a lenderand the remaining £20,000 was due to the Company. A formal agreement to this effect has been prepared andwe are awaiting the lender’s signature. Upon receipt of this, the £20,000 will be paid over to the Company.
2.3. Motor vehicle account
As detailed in previous reports, an agreement was put in place between the Company, the formerAdministrators and the Lenders regarding the repatriation of all vehicles on hire purchase. The agreementprovided for sufficient funding to be made available to the previous Administration to cover the costs of thisprocess so the Administration did not incur costs associated with the recovery of third party assets.
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The Lenders took over the vehicle recovery process in May 2009, however, the Liquidators were unable toconclude the reconciliation of the Motor Vehicle account until the outcome of the Goldacre Court case wasknown (details of this can be found in our previous reports). Following this, there were a number of complexmatters to be worked through in relation to finalising the reconciliation.
We can now confirm that the reconciliation of the Motor Vehicle account has concluded and the reallocations inrelation to this are shown in Appendix B.
However, following the conclusion of the reconciliation, we have discovered a potential liability in relation torental expenses that were incurred in the trading period of the Administration. The potential liability arisesfrom cheques that were issued to landlords but the cheques have not been cashed or where we do not hold anylandlord contact information and therefore the expense remains unpaid.
We are in the process of sending a final communication to landlords (where contact details are held) where webelieve rental expenses may be unpaid. Any landlord who believes they have unpaid rent for the Administrationtrading period should contact the Liquidators immediately. Please note this does not relate to any unsecuredclaim against the Company and solely relates to rental expenses incurred in the trading period of theAdministration.
The deadline for responses in relation to this matter is 21 June 2017 after which point we will not accept anyliability. Therefore, this will not affect the timing of the unsecured dividend to creditors but does requireconclusion before we can return the surplus funds in the Motor Vehicle account to the Lenders.
2.4. Statutory and compliance
2.4.1. Tax and VAT
As stated in our previous report, we completed and submitted final corporation tax returns to HM Revenue &Customs and asked for clearance to close the liquidation. This has now been received.
We have prepared and submitted Forms VAT 426 in order to reclaim VAT paid in the liquidation.
2.4.2. Annual report
We completed the annual report which was circulated to the Company’s members and creditors. We also heldmeetings of the members and creditors as required by Section 105 of the Act.
2.4.3. Other statutory and compliance matters
We completed and submitted statutory returns to the Registrar of Companies on a six monthly basis.
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3. Outcome for creditors
3.1. Secured creditors
During the prior administration, Yorkshire Bank Invoice Finance and The Royal Bank of Scotland were paid infull. The majority of the Company’s indebtedness to Barclays Bank plc was discharged during theadministration with the remaining £3,375.18 paid in the liquidation. The sum of £25,903.33 was paid toCraytex Limited in respect of its secured claim against the Company.
3.2. Preferential creditors (mainly employees)
There are no preferential creditors in the Liquidation
3.3. Unsecured creditors
The prescribed part is a fund that has to be made available for unsecured creditors. It’s paid out of “netproperty”. Net property is floating charge realisations after costs, and after paying - or setting aside enough topay - preferential creditors in full. But it only has to be made available where the floating charge was created onor after 15 September 2003.
In this case the prescribed part doesn’t apply because the floating charges registered against the Company werecreated before 15 September 2003.
We think a dividend of between 2% to 4% will be paid to the unsecured creditors based on what we knowcurrently.
We’ve calculated this on the estimate of the unsecured creditors included in the statement of affairs provided tothe administrators. The amount of the dividend will depend on the final level of submitted claims, futurerealisations and liquidation costs.
A summary of claims is shown below:
Description Number of claimsValue ofclaims (£)
Admitted claims 838 7,723,068
Rejected claims 71 669,912
Awaited claims 589 39,439,875
Held claims 118 49,695,984
We’re now able to tell you there are now enough funds available to give notice of our intention to declare andpay a first and final dividend. The formal notice of our intention to declare this dividend is uploaded to thewebsite and can be viewed at www.pwc.co.uk/lch. The final date for proving is 30 September 2017; please notethat any claims received after this date may be excluded from the dividend. Any creditors who have yet tosubmit a claim should now do so.
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4. Liquidators’ fees and other financialinformation
4.1. Our fees
At the meeting of creditors held on 3 June 2010, creditors passed a resolution enabling us to draw fees byreference to the time properly given by us and our staff in dealing with the liquidation. We’ve drawn fees in linewith this resolution.
From 18 March 2016 to 17 March 2017, we have incurred time costs of £75,270.25 for 276.10 hours work, whichworks out at an average hourly rate of £272.62. The average hourly rate in our last progress report was £210.
We include details of the time costs incurred from 18 March 2016 to 17 March 2017, by work type, at AppendixC.
Of the approved time costs of £872,466.17 we have drawn £605,662.01 and will draw a further £218,414 in duecourse. This represents the balance of our time costs to 17 March 2017 less the time costs incurred in respect ofthe Motor Vehicle Account. Further details are shown on page 20.
Further details of our fees are included in Appendix C, together with details of work that we would normally dobut has been subcontracted in the period.
4.2. Our disbursements
We’ve incurred disbursements of £152.05 during the period from 18 March 2016 to 17 March 2017 and we’vedrawn £91.49 of these. Further details are provided in Appendix C.
4.3. Creditors’ rights
Creditors have the right to request further information about the liquidators’ fees and expenses. Any requestmust be in writing. Creditors can also challenge the liquidators’ fees and expenses as set out in Rule 4.131 of theRules. This information can also be found in the guide to fees at:
http://www.icaew.com/~/media/corporate/files/technical/insolvency/creditors%20guides/creditors%20guide%20to%20liquidators%20fees%20england%20and%20wales.ashx
You can ask for a copy free of charge by calling Sandra Andrews on 0113 289 4926.
4.4. Receipts and payments account
A receipts and payments account for the period from 18 March 2016 to 17 March 2017 is provided in AppendixB.
4.5. Statement of expenses
A statement of expenses for the period from 18 March 2016 to 17 March 2017 is provided in Appendix D.
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Local Contract Hire and Leasing Limited (in liquidation) 10
5. Meetings of members and creditors
We’re required to hold annual meetings of members and creditors. Attached to this report is a notice of thesemeetings and a proxy form.
The purpose of the meetings is to present this report. No formal resolutions will be considered.
If you require further explanation of any aspects of this report, but don’t wish to attend the meeting, pleasetelephone or write to Sandra Andrews.
If you want to attend the meeting, please telephone Sandra Andrews so that arrangements can be made.
We must have regard to the convenience of creditors when convening any general meeting. From experience,creditors don’t often attend such meetings and so this meeting is being convened at the offices ofPricewaterhouseCoopers LLP, Central Square, 29 Wellington Street, Leeds, LS1 4DL in order to reduce costs. Ifyou want to attend the meeting but think the venue is inconvenient, it can be reconvened at an agreed venue ifyou contact us within the next 7 days. This is to ensure all other creditors can be told about the revisedarrangements.
If you wish to propose a resolution the following paragraphs will apply:
Individual creditors (i.e. not limited companies):
You can vote by simply attending the meeting, as long as a proof of debt has been lodged at the address stated inthe notice of the meeting before 12.00 noon on the working day before the meeting. If you don’t attend themeeting you may complete a proxy form to nominate:
someone else to attend and vote for you; or the chair to vote on your behalf.
The proxy form must be signed by you.
Limited companies:
A company is not physically able to attend meetings, so it must appoint someone to attend on its behalf by: completing and returning a proxy form (even if you’re a director); or producing at the meeting a sealed or certified copy of a board resolution authorising an
individual to represent that company at the meeting.
A company can also complete and return a proxy form to nominate: someone else to attend and vote as its representative; or the chair to vote as its representative.
The proxy form must be signed by someone authorised to sign on behalf of that company and the nature of thatperson's authority should be stated.
A proof of debt must also be lodged at the address stated in the notice of the meeting before 12.00 noon on theworking day before the meeting.
Important information if you are submitting a proxy:
A proxy holder can vote either on your instruction or at their discretion as indicated on the completed proxyform.
The proxy form must be lodged at the address stated in the notice of the meeting before 12.00 noon on theworking day before the meeting.
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Appendix A. - Statutory and otherinformation
Name of company: Local Contract Hire and Leasing Limited
Registered number: 02128011
Registered office: Central Square, 29 Wellington Street, Leeds, LS1 4DL
Former company names: None
Trading names: Local Contract Hire and Leasing Limited and 1 Car 1
Trading address: 15 – 17 Walter Street, Leeds, LS4 2BB
Names of liquidators and theiraddress(es):
Mark David Arthur Loftus of PricewaterhouseCoopers LLP, TwoHumber Quays, Wellington Street West, Hull HU1 2BN and
Toby Scott Underwood of PricewaterhouseCoopers LLP, CentralSquare, 29 Wellington Street, Leeds, LS1 4DL
Date of liquidators appointment: Mark David Arthur Loftus - 18 March 2010
Toby Scott Underwood – 8 March 2017
Details of change in liquidators: Stephen Andrew Ellis was removed as joint liquidator with effectfrom 8 March 2017 following a court application. Toby ScottUnderwood was appointed by the court as joint liquidator on thesame day
Details of prior administration: On 18 March 2009 Mark David Arthur Loftus and Stephen AndrewEllis of PwC were appointed Joint Administrators of the Company.The administration was concluded on 18 March 2010 being the datethe Company moved into liquidation
Estimated dividend for preferentialcreditors:
A dividend of 100p in the £ was paid on 8 November 2010
Estimated dividend for unsecuredcreditors:
2-4p in the £
Estimated values of the Company’snet property and prescribed part:
Not applicable
Whether and why the Liquidatorsintend to apply to court under Section176A(5) IA86:
No
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Appendix B. - Receipts and paymentsaccount for the period from 18 March2016 to 17 March 2017
18 March
2010 to 17
March 2016
18 March
2016 to 17
March 2017
Total 18
March 2010
to 17 March
2017
(£) (£) (£)
Assets subject to fixed charges
Receipts
None - - -
- - -
Assets subject to floating charge
Receipts
Administration surplus** 1,317,178.18 149,593.43 1,466,771.61
Factored debts 1,098,768.16 - 1,098,768.16
Legal settlement 1,300,000.00 - 1,300,000.00
Freehold property 335,250.00 - 335,250.00
Book debts 209,483.61 - 209,483.61
Factored debts - trading 403,888.17 - 403,888.17
Distributions received 56,775.27 - 56,775.27
Fixtures & fittings 213.00 - 213.00
Third party funds 30.00 - 30.00
Rates refunds 5,484.82 - 5,484.82
IT licenses 600.00 - 600.00
Petitioning costs 1,916.00 - 1,916.00
Interest received 54,650.87 - 54,650.87
Sundry refunds (telephone/fax) 490.60 - 490.60
Road fund licences 301,405.00 (180,000.00) 121,405.00
Pre appointment VAT 57,925.85 - 57,925.85
VAT monies from YB - 94,993.66 94,993.66
5,144,059.53 64,587.09 5,208,646.62
Payments
Factored debts 1,098,768.16 - 1,098,768.16
Factored debts trading (net of VAT) 395,294.80 - 395,294.80
Office holders' fees 515,662.01 90,000.00 605,662.01
Office holders' expenses 4,290.35 30,279.04 34,569.39
Archive costs 54,553.24 23,518.80 78,072.04
Agents' fees 11,265.53 - 11,265.53
Agents' disbursements 1,428.14 - 1,428.14
Professional fees 700.00 - 700.00
Heat, light and power 13,658.43 - 13,658.43
Water rates 4,151.03 - 4,151.03
Postage & stationery & printing 4,583.47 - 4,583.47
Legal fees and disbursements 199,385.90 - 199,385.90
Telephone & fax 305.84 - 305.84
Rates 259.11 - 259.11
DTI cheque fees/ISA costs 110.00 105.50 215.50
Tax deducted on interest 9,011.44 - 9,011.44
Statutory advertising 73.62 - 73.62
Bank charges 572.00 - 572.00
Corporation tax 5,865.71 1,024.74 6,890.45
2,319,938.78 144,928.08 2,464,866.86
Net balance 2,824,120.75 (80,340.99) 2,743,779.76
Net VAT (receivable) / payable 6,516.31 (28,759.57) (22,243.26)
Secured creditors (29,278.51) - (29,278.51)
Preferential creditors paid 100p in £ on 8
November 2010 (209,670.75)
-(209,670.75)
- Balance in hand* 2,591,687.80 (109,100.56) 2,482,587.24
*Removed from interest bearing account in order to conclude the tax position
** Adjustments following reconciliation of motor vehicle account
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Local Contract Hire and Leasing Limited (in liquidation) 13
Motor vehicle account
18 March
2010 to 17
March 2016
18 March
2016 to 17
March 2017
Total 18
March 2010
to 17 March
2017
(£) (£) (£)
Receipts
Release of funds from administrators** 411,697.15 (149,593.43) 262,103.72
Post appointment trading sales 103,360.82 - 103,360.82
VAT monies from YB** 94,993.66 (94,993.66) -
Contribution to wages paid in the administration 3,811.52 - 3,811.52
Interest received 10,672.42 - 10,672.42
Rates refunds 2,191.62 - 2,191.62
Road fund licences - 180,000.00 180,000.00
626,727.19 (64,587.09) 562,140.10
Payments
Insurance 23,820.93 - 23,820.93
Legal settlement 9,741.00 - 9,741.00
Rent 17,556.63 - 17,556.63
Heat, Light and Power 5,003.24 - 5,003.24
Employee costs (administration) 2,406.92 - 2,406.92
Rates 896.57 - 896.57
Telephone & Fax 905.97 - 905.97
Repairs & Maintenance 652.72 - 652.72
Water Rates 387.61 - 387.61
Storage costs 149.80 - 149.80
Legal fees and disbursements 56.70 - 56.70
Bank charges 30.00 - 30.00
Funds returned to lenders - - -
61,608.09 - 61,608.09
Balance in hand* 565,119.10 (64,587.09) 500,532.01
*Removed from interest bearing account in order to conclude the tax position
** Adjustments following reconciliation of motor vehicle account
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Appendix C. - Details of ourremuneration and disbursements andother professional costs
Background
This section sets out the process that was established for setting and monitoring the Liquidators’ remuneration.
The basis of our fees and certain disbursements was agreed at the meeting of creditors on 3 June 2010.
The basis of our fees is by reference to time properly given. Details of the amount we have drawn can be foundin Section 4.
Liquidators’ charging policy
The time charged to the liquidation is by reference to the time properly given by our staff and us in attending tomatters arising.
It is our policy to delegate tasks in the liquidation to appropriate members of staff, considering their level ofexperience and any requisite specialist knowledge needed and they are supervised accordingly to maximise thecost effectiveness of the work performed.
Our junior people have done the routine work in the liquidation to keep the costs down. But we and our seniorstaff have supervised them and we have dealt with any complex or significant matters ourselves.
Matters of particular complexity or significance requiring more exceptional responsibility are undertaken bysenior staff or the Liquidators themselves.
Details of subcontracted work
No work has been, or will be, subcontracted.
Narrative of key areas of work carried out for the period from 18 March 2016 to 17 March2017
There remain a number of distinct work streams within the work we have done. It should be noted thatindividuals will have worked in more than one area. The activities of these work streams are summarised below:
Area of work Work undertaken
Why the work was
necessary
What, if any, financial
benefit the work
provided to creditors
OR whether it was
required by statute
Strategy & planning Team briefings on case
progression and
resolution of
outstanding matters
Ensures matters are
progressed efficiently
and cost effectively
Financial benefit for the
creditors
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Joint Liquidators’
oversight and review of
case progression and
strategy options
Dealing with general
incoming
correspondence
Managing case diary /
events.
Assets Liaising with h.p
creditors to confirm the
correct asset allocation
Liaising with solicitors
re monies held
Dealing with formal
agreement re allocation
of funds
To achieve the best
result for creditors
Financial benefit for the
liquidation
Creditors Agreement of creditor
claims
Dealing with telephone
calls
Dealing with emails
Updating creditor
information
To ensure creditor
claims are admitted
correctly for dividend
purposes
Facilitates the payment
of a dividend to
creditors
Accounting & treasury Processing receipts and
payments
Journals
Bank reconciliations
Budgeting
Billing
To ensure management
of the bank account is
up to date
Benefit of proper
stewardship and
accounting of case funds
Statutory & compliance Six monthly case
reviews
Annual reporting
Meetings of members
and creditors
Reconciliation of motor
vehicle account
Completion and filing of
statutory returns
Filing
Completion of case
diary events
To comply with
statutory obligations
Required by statute or
regulation
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Calculation of
outstanding
disbursements
Tax & VAT Obtaining tax clearance
VAT reconciliation and
submission of form
VAT426
To comply with
statutory obligations
Required by statute
To minimise tax
liabilities and regain
VAT refunds
Our future work
We still need to do the following work to conclude the liquidation
Area of work Work we need to doEstimated cost £
Whether or not the
work will provide a
financial benefit tocreditors
Strategy & planning Team briefings on case
progression and
resolution of
outstanding matters
Joint Liquidators’
oversight and review of
case progression and
strategy options
Dealing with general
incoming
correspondence
Managing case diary /
events.
3,000 Ensures matters are
progressed efficiently
and cost effectively
Statutory & compliance Preparing, drafting and
issuing annual progress
report
Completing statutory
six monthly case
reviews
7,000 No financial benefit to
creditors. Complyingwith statutory duty
Accounting & treasury Processing receipts and
payments
Journals
Bank reconciliations
Bank account closure
3,000 Benefit of proper
stewardship and
accounting of casefunds
Creditors Agreement of creditor
claims
Calculation of dividend
Distribution to
unsecured and creditors
81,606 Facilitates the payment
of a dividend tocreditors
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Creditor enquiries
Tax and VAT Submit VAT returns 1,000 No financial benefit to
creditors. Complying
with statutory duty
Closure Clearances
Final meetings and
report
5,000 No financial benefit to
creditors. Complyingwith statutory duty.
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Hourly rates
In common with all professional firms, scale rates increase from time to time over the period of theadministration of each insolvency case. PricewaterhouseCoopers LLP, or any successor firm, reserves the rightto change the rates and grade structures. During the period covered by this report the charge out rates wereincreased on 1 July 2016.
Set out below are the relevant maximum charge-out rates per hour worked for the grades of staff actuallyinvolved on this assignment. All staff who work on this assignment (including cashiers, support and secretarialstaff) charge time directly to the assignment and are included within any analysis of time charged. Time ischarged by reference to actual work carried out on the assignment in six minute units. The minimum timecharged is three minutes (i.e. 0.5 units). There was no allocation of any general costs or overhead costs.
Specialist departments with our firm, such Tax, VAT, Property and Pensions were also used where expert advicewas required. Such specialist rates do vary but the figures below provide an indication of the maximum rate perhour:
Grade Maximum rate perhour
(from 18 March 2016 to30 June 2016)
(£)
Maximum rate perhour
(from 1 July 2016 to 17March 2017)
(£)
Specialistmaximum rate
per hour
(£)
Partner 590 600 1,250
Director 490 500 1,150
Senior Manager 425 435 970
Manager 340 345 700
Senior Associate 255 260 515
Associate 165 170 255
Support staff 185 89 150
Our relationships
We have had no business or personal relationships with the parties who approve our fees or who provideservices to the liquidation where the relationship could give rise to a conflict of interest.
Payments to associates
We have made no payments to associates.
Disbursements for services provided by our firm (Category 2 disbursements)
Our firm’s expenses policy allows for all properly incurred expenses to be recharged to the case. Disbursementswere charged to the assignment as follows:
Photocopying At 5 pence per sheet copied, only charged for circulars to creditors and other bulk copying.
Mileage At a maximum of 67 pence per mile (up to 2,000cc) or 80 pence per mile (over 2,000cc).
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Our disbursements in the period from 18 March 2016 to 17 March 2017
We have incurred the following disbursements (excluding VAT) in the period from 18 March 2016 to 17 March2017.
Category 1: £ Category 2: £
Postage 44.76 Mileage 107.29
Total: 44.76 Total: 107.29
The statement of expenses at Section 6 show what we have drawn in total in relation to our disbursements.
Other professional advisors we’ve used
A summary of legal and other professional firms and subcontractors instructed in the period from 18 March2016 to 17 March 2017 is below:
Name of firm /organisation
Service provided Reason selected Basis of feesAmount paid inperiod (£)
DLA Piper LLP Legal advice Expertise Time costs Nil
Lupton Fawcett LLP Legal advice Expertise Time costs Nil
Eddisons CommercialLimited
Valuation & disposaladvice
Expertise Time costs Nil
Jardine Lloyd Thompson Insurance Industry knowledge Risk based premium Nil
C W Harrison & Sons Archive storage Industry knowledge Industry rates 23,519
We are currently storing several thousand boxes containing the Company’s accounting records. We arerequired to retain such records for 6 years from the date of insolvency. This date has now passed but we areretaining the records until the claims agreement process is complete.
Our choice of professional firms and subcontractors was based on the advisers’ experience, the complexity andtype of work and the basis of the fee arrangement. We’re satisfied that the fees charged are reasonable.
Joint Liquidators’ seventh annual report
Local Contract Hire and Leasing Limited (in liquidation) 20
Analysis of our time costs by grade and work area from 18 March 2016 to 17 March 2017
*This includes time costs incurred in the period of £19,746 which relate to the reconciliation of the Motor Vehicle Account. Please note that during the period from 18 March2010 to 17 March 2016 we incurred time costs of £28,644 relating to the Motor Vehicle Account. Fees charged in relation to these time costs will be recovered from funds held inthe Motor Vehicle Account following agreement with the lenders.
Aspect of assignment Partner Director
Senior
Manager Manager
Senior
Associate Associate Secretarial Total hours Time cost
Average hourly
rate
£ £
1 Strategy & Planning - 0.80 1.35 5.05 3.20 1.50 2.20 14.10 3,917.25 277.82
2 Assets - - - 1.25 9.35 - - 10.60 2,838.75 267.81
3 Creditors - - 23.80 16.35 51.10 2.25 - 93.50 27,793.90 297.26
4 Accounting and treasury - 0.20 0.05 2.50 6.50 6.85 0.30 16.40 3,654.70 222.85
5 Statutory and compliance* - 3.50 16.10 6.30 90.95 0.80 4.17 121.82 32,722.65 268.61
6 Tax & VAT - - - 4.30 8.20 3.50 - 16.00 4,243.00 265.19
7 Closure procedures - 0.20 - - - - - 0.20 100.00 500.00
Total for the period - 4.70 41.30 35.75 169.30 14.90 6.67 272.62 75,270.25 276.10
Brought forward as at 17 Mar 2016 3,791.37 797,195.92
Total 4,063.99 872,466.17
Joint Liquidators’ seventh annual report
Local Contract Hire and Leasing Limited (in liquidation) 21
Appendix D. - Statement of expensesfor the period from 18 March 2016 to 17March 2017
The Rules requires this progress report to include a statement of expenses incurred by the Liquidators duringthe period of the report, irrespective of whether payment has been made or not. This relates to all costsincurred, and not just the Liquidators’ disbursements. Such a summary of expenses is found below:
Unpaidexpenses asat 17 March
2016
Expensesincurred in
the period
Expensespaid in the
period
Expensesunpaid as at
17 March2017
£ £ £ £
Office holders’ fees 281,533.91 75,490.75 90,000.00 267,024.66
Office holders’ expenses 30,187.55 152.05 30,279.04 60.56
Archive costs 7,839.60 15,679.20 23,518.80 -
Agents' fees - - - -
Agents' disbursements - - - -
Professional fees - - - -
Heat, light & power - - - -
Water rates - - - -
Postage, stationery & printing - - - -
Legal fees & disbursements - - - -
Telephone & fax - - - -
Rates - - - -
DTI cheque fees/ISA costs - 105.50 105.50 -
Tax deducted on interest - - - -
Statutory advertising - - - -
Bank charges - - - -
Corporation tax - 1,024.74 1,024.74 -
Total 319,561.06 92,452.24 144,928.08 267,085.22