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Acepoint Limited — in Administration
High Court ofJustice, chancery Division,Leeds District RegistryCase No, 1304 of2014
Company No. 03358343
Joint Administrators’ progress report forthe period from 16 July 2015 to
30 November 2015
11 December 2015
wwi ,pic.couk acepoint
Fiiceiaterhouse( )OCIS I I I’
Telcpl OflE 44 (o ii 3 89 45Facsimile’ 44 (0) ii 89 4460
F mail
Contents
Section
1 Joiit Administrators second progress report for the period from i6 July 2015 to30 November 2015
2 Statutory and other infbrrnation
3 Receipts and payments account
4 Expenses incurred in the period
5 Approval of unpaid pre-aciministration costs
Abbreviations used in this report:
“the company” or ‘4cepoint” Acepoint Limited (in Administration)
“the admirzjstrators”or “we” Lyn Vardy, Tobv Undenvood and Ian Green as joint administratorsof the cornpan
“the Bank” Handlesbanken
‘cPML” (‘1ubeas Property Management Company
“PPH” PPI-I CommerciaL the admin istrator’ managing agent
“PwC” Pri eewaterhouscCoopers LI P
‘1R86” Insolvency Rules 1986
“Skipton” Skipton Building Society
“Paraoou” Paragon Mortgages Limited
i Joint Administrators’ progress report for the period from16 July 2015 to 30 November 2015
Introduction
In accordance with Rule 247 of 1R86, we ‘a rite to provide creditors with details of the progres of thedministration of the Company during the period from 16 July 2015 to 30 November 2015. Thisreport should be read in conjunction with the pre ious p1ogrcs report for the period from i6 January2015 to i July 2015 sent to all creditors on 1:1 August 2015.
The Administration is due to come to an automatic end on i January 2015, but the purpose of theAdministration ‘a ifl not have been achieved by then as there remainc assets to realise. This report hasth’refore been drafted to support an appleation for an cxtei’aiuii to the Administration for a furtheri8 months to i6 July 2017.
Further background on the Company and events leading up to our appointment can be found in ourstatement of proposals dated 9 March 2015, a copy of which is available at
We are required to provide certain statutory information pursuant to Rule 2.47(1)(a) to (d) 1R86,which i included in Section 2.
As previously reported, based on current and estimated future realisations we think it is unlikely therewill be sufficient realisations to enable a distribution to unsecured creditors. Further details oiitlimngthe reasons behind this are discussed below.
Overview of the administration
Trading
To recap, immediate steps were taken to protect tenant welfare and maintain continuity of services.Emergency contact numbers were maintained in the short term whilst longer term solutions were putin place. \ new letting platform, Avenue Lets, was established who now opelate offices in both Lincolnand Hull. These centres have been successful in promoting the properties available for rent and act asa point of contact for existing tenants, PPH were appointed as our managing agent to establish controlover rental income and respond to tenant issues and maintenance requests and continue to do so.
To 30 November 2015 there has been a trading surplus of £i8o.ioq.oq on a receipts and paymentsbasis. This surplus includes significant costs incurred in repairs. maintenance and refurbishments.Substantial work has been undertaken across ilarge proportion of the portfiuio to ensure that allproperties are compliant with Health md Safety regulation . as xsell as to increase the potential rentalincome and subsequent s alue of the portfolio. ‘1 heo’ nts total £3:38.428 bcfoi e VAT fromappointment P i :30 ovemhcr 2015
‘a t p — p ju ic ,. ci ‘a P 1 0 <‘a ‘ad,ifltIClFLtt’ <‘a mci’ i—cd rntjl n omr net a’id< trw at ‘a 2 I’d —nIt <1 thc ‘a A unict’takn t- lot.
(‘ouneil mx pro niszonc
‘ho ma’rtc ot the Contpans jerP on ‘aid I \ is th’ r tiip<:’$ Li t11o nten mt’. ill s’ai. hiowest thctc 112’ .1 sUlilt idilpIrtlo f 0’ 1 ti(h(’nt I)I<fl(It1” ‘ahab <‘ntri< Pic rut iunc 1 Ia liah Pie thi L h t ib ‘air iu’at itic
e do not envisage making any floating thai cc emli-ati ow md theretPe we has e no hinds P pay thecouncil tax balances accruing. There i— an e\cm’ptimn where tt’nam’v acreenlcnt— -pecificalh state thatthe ompans we will meet ‘ins council t’ix oblie ition f r thc pen )dl < f c upati n. En thesc c 1 s ‘aar urn r tl 1’ i i lb f r 1 a i c r 1 n ii ‘a i’ I n I Ii Ia,itoo line, cIii 0 mc ;o c’ a” ‘ 1 nt,ix petIt
i Joint Administrators’ progress report for the period fromi6 July 2015 to 30 November 2015
_____ ___
Initial communication and controls
\e ha e estah1i’hed new ofhees to provide tenants a point of contact on the ground for rental andletting enquiries, improving the existing service. \ website has since been created to help deliver thisservice, as well as to promote properties in the portfolio 2\ ailable for rent. ‘[‘his can be viewed at
PPI{ inspected all properties to ensure they were compliant with necessary health and satctstandards and, where applicable, outstanding repair work is being completed.
Rent collections to date have been sufficient to meet administration expenses.
Property disposal strategy
Since our appointment, there has been significant interest in the (‘ornpanv’s portfolio from propertydevelopers and investors. Our initial steps have been to gain control and understand the portfolio. Theconditions of properties within the portfolio were largek poor and in a state of disrepair. To date wehave invested significantly in the portfolio to build and maintain occupancy levels and ultimatelyalm_.
We initially went through an extensive sales and marketing process on two portfolios in Hull andLincoln. This included the setup of data rooms for interested parties to view the portfolios in greaterfinancial detail, as well as viewings at several of the properties. The best and final offers received fromthis process were considered to be less than the market value of each portfolio.
We have since reverted to our pre-planned alternate strategy of seeking sales on a piecemeal basis onthe non-core properties. This will include a mixture of private treaty and auction sales. To date, over20% of the portfolio is currently being marketed for sale. Of these marketed for sale, 13 propertieshave had offers accepted, with a further 4 sales completed. \ e hope to update creditors in our nextreport surrounding any sales More detail of property sales in the period has been included below
Sale ofproperty
lrom the portfolio. three properties have been sold in the period of this report. realising a total ofK324,o5o. total of four properties hae now been sold since appointment, for a total of £44,o5o,Details of the properties sold in the period of the report ate detailed below.
— Consideration Completion da]Morpcth Street hull L i )b )50 N cmhe ‘u
43 priHg Baok [lull S’.non ii \o r’mhr
— ___( __iJi_Total — £ 324,050
\ d eiil 1 i isl e iii it h it tiiIo<lt J in er litni i Jo Tv\t nt
Rental ai i’ears
(in app i itmcr t. thc Id [ci itdg itt tall I L( 6.,
I is I Jan t i fi ti d whats ent th n ut tntyear renl al il’rea rs,
fncthei with PPII. we ha\ Ix en continuing I nih ci th x. h’i ei. tOrT t’ w a u aporti n w IiI n nti. 1 1
i. Joint Administrators’ progress report for the period from16 July 2015 to 30 November 2015
Receivership appointments
As previous reported, Skipton Building Society and Paragon Mortgages Limited. have appointedfixed charge recei’ ers to the Company’s properties subject to their security.
The properties subject to fixed charge ieceiership are under the control and management of therespective receivers and not the administrators.
The job of the receivers is to sell the properties subject to their appointors’ charges, and to use theproceeds to repay the amounts due to Skipton and Paragon. The receivers nil! keep their ownaccounts and these finds iii not form part of the adminstraton estate unless and until citherSkipton or Paragon has recovered its lending in full.
Receipts and payments account
An account of the receipts and payments in the Administration for the period from i6 .JuIy 2015 to 30November 2015 is set out in Section 3. This includes a statement of the fixed charge trading receiptsand payments, but for accounting reasons, the period of the trading account is from i July to 30November 2015.
Expenses statement
A statement of the expenses incurred by the Administrators in the period 16 July 2015 to 30November 2015 is included at Section 4. The statement excludes any potential tax liabilities that maybe payable as an expense of the Administration in due course because amounts due will depend on thposition at the end of the tax accounting period. The statement also excludes any provision for theadministrators’ fees and category 2 disbursements as the basis for these is yet to be formally agreed.
Administrators’ remuneration
As we think that there will not be sufficient funds to enable a distribution to the preferential andunsecured creditors, the basis of the Administrators’ remuneration is to be approved by the securedcreditors. A basis for our fees has been agreed in piinciple with th Bank and we will be seeking formalapproval from all secured ci editors in due course. Once approved, this will be dsclocecl to creditors atthe time ci the next report. \.s a result, no fees have been drawn to date
Pre-Administration COS ts
Prior to our appointment, with a ien to the Compam entering \dministration, n& incurred costs of£55,256.50. As we do not expect to imike a distribution to the preferential and unsecurod creditnr, itwill be for the secured creditors to applo\ c these osts a an epi’nc of the dministraiion.suminar of tIn ts i Di vidcd t Se tier j
(‘reditors rights
(‘ dii h ft hi fri rr u n or h1 I s n n Ii Ite A tlw 10 fr RiIc. toSr nt tc J rnlit be ci trn ditci t,rnai” fl;iI1 necand tciLhin cieht e “ck tho. ci p r1 o ;u1 to :. roe fhi’ iniormabon an iiuit cii ii t ( ir
Alterriatk oft, a copi ci hi l’t ained tt of ,harce io ti k plioninc ITuh fr thwcil tO UI ‘3 .i401 4105.
i Joint Administrators’ progress report for the period fromi6 July 2015 to 30 November 2015
_____
Outcome for creditors
Secured creditors
At the date of our appointment, the following amounts were owed to the secured creditors of theCompany:
1-landlesbankenParagon Mortgages Limth d 2.3Skipton Building Society Limited 1.3
25.9
Each of the secured creditors has security by was of fixed charges and mortgages over certainproperties owned by the Company. Skipton and Paragon have advised they also each hold a floatingcharge and we are currently seeking legal advice regarding the validity and extent of these, This matteris still outstanding and we are still taking legal advice over the position. We currently believe that eachof the secured creditors viil suffer a shortfall in recovering their lending. In the event that eitherSkipton or Paragon recover their lending in full any surplus will form part of the unchargedrealisations in the administration.
Preferential creditors (,nain iy employees)
Preferential claims relate to certain arrears of wages and unpaid holiday pay of former employees.Given that there were no employees of the Company, we do not anticipate that there will be anypreferential claims against the Company.
Unsecured creditors
The prescribed part is a fund that has to be made available for unsecured creditors, It is paid out of“net property”. Net property is floating charge realisations after costs, and after paying or settingaside enough to pay preferential creditors n frill, But it only has to be made available where thefloating charge uas created on or after i September 2003
The amount of the prescribed part is:• 50% of net property up to £10,000
• 20% of net property above £10,000
• Subject to a maximum of £6oo ooo
‘l’hc prescribed part ma apply to aset under Paragal and Skipton’s security a cadi ha ad iseft usttws h Id a floating chai’gs civ ated ftc Scptcmber ‘t \ sta r I ab ye &‘ hi pii r ti iti n P s 10 O 1(1 1 ‘ ii it. Ci 1)1 1 ti i itt
Ps t T’s tiIi ci the ‘ie that rcalisit sI1 Ic’ ii ti ii in hti’a acts ci!! be rnmimal and c ni’ fss t ‘ a r I ii h if r r 1st tis Ps i tF 11 s s I r
pr P’ an I lii (C, he )i’ SC iIcc part i ii >i fl , A( (,T npl cc 101 think ft it th Is ill Ia iii\ftjn’Ps ,n ailable Is’ mae a lPtiihurisn I lbs Ui”tUftd Is ditsi
StaLutor purpose of adminl%tratlon
As ailed in our proposals. Is c art’ pursuine Ol)lCCtiVc (Is) of the tatntorv purpnst’ si adntinistraticn:ahieving a better i esult for the Companl ‘s U editors a a s liok than would he Iikclr if the (ompanyw etc c mind rip (u ithout first bring in administi Ition) W antic ipat th it our sIt itegs f activt lvmanacinc and impro inc the Compan ‘s rsnai pcrtb!i. will all .ss lhP obisa’til e t Is- iii iced
L Joint Administrators’ progress report for the period fromi6 July 2015 to 30 November 2015
______
Extension and exiting the Administration
The Administration is due to end on 15 ,Januarv 2015. The (‘ompany cannot be placed into Creditors’Vohintaiy Liquidation as it is anticipated that insufficient funds will be realised from the sale of theproperty to enable a distribution to unsecured creditors, It follows, thus, that the Administrators’require a further i8 month extension to the period of the Adminstratinn to conelude the sale of theCompain’s portfolio.
Once the objective is achieved the expectation is that the dministration will move to dissolution,borm 2.35B will be filed with the Registrar of (ompanies in accordance with Paragraph 84 (1) Sch. Bi1A86 and the Compan will be dissolved three months later.
Next report
The Administrators anticipate that they will circulate their next report to creditors at the earlier of thecoicltsion of the Adininitration or in approximately six months.
Ly’Joint AaministratorAcepoin Limited — in Administration
Lyn Var. Thby Lidenuood and Ian Green have been appointed as joint administrators ofAccpoint Linnted to ma age itsa/fnrs. business and propertp as its agents and act u’ithoui personal ljabthtv. Lyn Vardtj, loby Gnderwood and Ian Greenare licensed in the United Kingdom to act us msolueney practitioners by the Institute of Gharteredlccountonts m Englandand il/ales. Thejoint administrators are bound by th Insolvency Code ofEthics ubich van befiund at:https-//www you uk/gorcrninent/publications/insoluency pr z tztioner x de of- ‘tlzzcs
The joint udmmistraturs are Data ( ontrollers yfpersonul data as defmsd by the I)ata Protect Ion Act ipq8.Priceu’aterliouseC’oopers LLP nil/autos Data Proressor on then’ P?StT’U( tlons Personal data will he kept ecurc and processedanhj/dr n1aItc”. relating to the odminuaratioi.
2. Statutory and other information
Court details for the administration High Court of Justice, Chancery Division, LeedsDistrict RegistryCase no 1304 of 2014
Full name: Acepoint Limited
Trading name: \cepoint Limited
Registered number: 03358343
Registered address: Benson House
33 Wellington StreetLeedsLS1 4JP
Company directors: Lee BarkmanPhilip Montague
Company secretary: None registeredShareholdings held by the directors and Nonesecretary:
Date of the administration appointment: 16 .Januarv 2015
Administrators’ names and addresses: Lvn Leon Vardy and Toby Scott UnderwoodPwC. Benson House, 33 Wellington Street. Leeds.LSi 4JP
Ian David GreenPrC, More London Riverside. SRI 2RT
Appointor’s / applicant’s name and High Court of Justice, Leeds District Registryaddress:
Objective being pursued b the (b) achieving a better result for the Company sadministrators: creditors as a uhole than uould be likely if the
Company u re uound up (without first being inadministration)
Division of the administrators’ In relation to paragraph 100(2) Sch.Bi 1A86,responsibilities: during the period for which the administration is
in force, any function to be exercised by thepersons appointed to act as administratous maybe ore by an u all (f the persons appoint I rany thl r n f h ti ne heinr hoidinc that
Proposed end of the administration t for en ditorc and dnpoalrat rt T t I ‘ Insolution t{itlowrne
I stimated di idend for unsecuredci editors
fhe European Regulation on Insol enc. ‘11w Fuiup an Rieu]a[ion on Inu1Proceedings (Council Regulation (EC) No, Proccdun ;ipplie ti thn administration and1346/2000 of 29 Ma 2000): the pr’azecding an’ main pimeedine’.
3 Receipts and payments account for the period i6 July2015 to 30 November 2015
eepoint Lini ited — in admiiiistrationSum mar of financial information as at 30 November 2015
I otal for the period 1 otal for the periodfront i6januarv from i6Jtilv 2015
2015 10 15 Juh 1030 No ember2015 2015
£ £1.25242
214.050.01)
121.4,31.74
1’O.OOO.OQ
228,915.99438 50
______—
285.76 320.43
490,511.92 446,854.59
total fir the periodfrom iájanuarv 2015
to30 Nos ember 2015
£01 “20.02,
454.050.1)0
420 J -— $430.50
606.13
937,366.51
Balance ofFhed Charge Funds 438,526.56 166,-i8.2 605,244.8:3
Floating Charge Realisations
Floating Charge PaymentsS’atut” rc I tiSlIl 4 (a _3.02)
(223.92)
- 1223.02)
- (223.92)
Balance of Floating Charge Funds (223.92)- (22:4.92)
1,0 5”
Eked Charge Realisations
IiI ierfi ]d]aidaiii po 1’.
‘,t Ii ding o.reii.ts eiIiI’I’ ‘1 If’ III 2 2 2.,)),, 2,3’)) 5
Rent II 2) IrsI) teest re ‘is ‘3 gi’.s
Fixed Charge PaymentsPieR sS)0IlaI te€ S
,,ents’ tees & disbui cementsLegal tees & disburseninnis
Irre’aserable\ AT101011)1 ‘e
1. tiLt es & rates
Ban) ‘haiges
(2 5oo.oo) (865.00) (5.365.00)
(21.950.00) (5.87 8.90) (27.828.90)
(21,53)88) (i .644.50) (23,3—0.38)
(4.135.91) (11.532.19) ()3,28.Io)(2,234.00) (2 234.00)
(1,822.57) (257-00.73) (2j9.529.30)
(45.00) (i .oo) (00.00)
(51,985.36) (280.136.32) (332,121.68)
Funds in hand 438,302.64 166.— 18.2- 605,020.91
Note: All hinds ai’e held in ‘i high interest account
3 Receipts and payments account for the period i6 July2015 to 30 November2015
PPII trading account as at b No ember 2015
Receipts
Pa mentsPPHSstupf
fllces’t posts
PPII Msna,,en eli fe,(4 nral ff1 ‘C stsPPI-1 Lcttio, fee‘Vt gesL ttin$s and ads ertisem-ntIs sos asses. ‘om (lance costI-Iealth and safs it co ispliiiss’s CostsHMO licence omplianee feeSec uriteOther propert} related costsIrrecos us able ‘V AT
PPH t adnsg surplus
R pails a’sdosainte,sassceFsu’. ,-siilttcd I, the ad lIlIlllStr,)ti ,li
Balance held b PPII
Administration figures related to trading
4djnsted trading surplus
(4 suents fos u0lissrs sssd ssssslsasle paid die ii b.(5 01 flts c so I th I pa,, TI 1 ci
1 otal for the period Total for the period I otal for the periodfrom froni from
i6Jsmuars 2015 iJuh 2015 to a6ianuars 2015 toto 30 June 2015 30 Non em her 2013 30 Non ember 2015
‘404 OjI 480 11 009 DC)
‘5,54 9,5 48’) 55 1 2 54 00’) 0’)
4 00 00 (4
( 8_ 22 ( 824 22)
(80 2,6 3) (40 6 94) (129.871 ‘)
(2(74 23) (1 962 57) (4,636805(1,236 o) (26617 ) (j 8’ 29)
(39,441 79) (3’ 933 77) (71,375 56)(so,o6 21) (689 8) (ii,tg 79)(8,8$o 00) (20 4 to 00) (29,310 00)
(870 00) (a ,is 5o) (3 003 50)
(9 6,0 oo) (9,610 00)
(i,o so) (110 jo)(13,903 46) (15 501 23) (29404.69,
((‘4033 ) ho 034 23) (t 3 069 76)(29180897) 121895901) 5s3688)
iD 142 25a 270 158 1 —So 300 43),o8 6_C ,o) (22Q,9O 88) 538.428 04)(208 (113 00 (all 4$’ 4) ‘420 34 73)
192,598.11 ( t 1.073.46) 21.524.65
0 8s I )05’ 05, 5) (259 529 3)))2 .1(4 oo5 (2 234 001
399,691.53 (219.582.45) 180,100.09
(se s’(”dn6srators is I ist( ‘let I) is ledee ssi ‘he,) (51715(1 tO
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5 Approval of pre-administration costs
11w follouing are costs incurred prior to our appointment but with a view to the (ompanyentering administration. It is proposed that the unpaid costs will be paid as an expense of theadrnmistration. Such payment is subject to the approval under Rule 267 I R$6 and part of theproposals subject tu approval under Paragraph Sch Bi 1A86,
Please note this tigure is different to pro appointment tinie cost reported in our proposals due to areallocation of an additional Li ,g66 time cost for time relating to ork performed pro appointment,
[ I’npaid amount
Fees charged by the Joint Administrators 56,622.50Expenses incurred by the Joint Administrators
-
Fees charged by other persons qualified to act as an insol ency-
practitioner
Expense charged by other persons qualified to act as an insolvency-
practitioner
Total unpaid expenses —_56,622.50
This work included:
• Statutory and planning work in relation to the appointment, including internal risk audcompliance procedures;
• Discussions with the Bank and the directors with regards to the appointment• Discussions with the lauyers and advisors regarding legal issues and placing the
Compan into administration; and• Team briefings and preparation for site vicits and trading.
Acepohit limited in administration
‘tniiI si’. ol po appoininant tiln( eost
jjj rzi
_____________________________
£ LI
