Creditors/Suppliers
Creditors FAQs
What type of creditor am I?
Creditors are classified as to the type of claim they have, and these types will determine the quantum of distribution they will receive as the funds for each type are ring fenced.
The three main types of creditor are:
• Secured;
• Preferential; and
• Unsecured
Secured creditors have security registered at Companies House. When they have a fixed/standard charge over an asset, the secured creditor will be paid out of the realisations from that specific asset, after the costs of realisation have been deducted. When they have a floating charge over an asset, the secured creditor will be paid out of the realisations from those assets, after the costs of realisation and other expenses of the insolvency procedure, the preferential creditors (see below) have been paid in full and the prescribed part (see below) has been set aside.
Preferential creditors primarily consist of employees for arrears of wages, accrued holiday pay, unpaid contributions to occupational pension schemes and state scheme premiums, all within certain limits. As of December 2020 this also includes certain aspects of HMRC’s claim, and such claims will rank as secondary preferential claims (paid after the preferential element of the Team Members claims) and consist of the VAT, PAYE and NIC deductions. Preferential creditors rank ahead of all other creditors when realisations are achieved from assets where there is no fixed charge registered.
Unsecured creditors are all other unsecured and non-preferential creditors (with the exception of shareholders/members). These are usually the normal “trade” creditors. They rank below preferential and secured creditors, with the exception of when the prescribed part is applicable (see below).
Shareholders / members will be the last class of creditor to receive a distribution and they will only receive a distribution after everyone else has been paid in full.
What is the prescribed part?
When a secured creditor has a floating charge registered after 15 September 2003, a proportion of the funds available to them is set aside for distribution to unsecured creditors. This is the prescribed part.
The prescribed part applies in this case as there is a floating charge created after 15 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 £800,000
Insolvency legislation sets out how the prescribed part is calculated and if it is applicable further details will be provided in the officeholders’ reports to creditors.
What further information will I receive?
The Joint Administrators will write to all known creditors of the Companies (per the creditor list obtained from the Companies’ books and records) to formally notify them of the administration appointment. This will be accompanied by a general website notice informing creditors that most future documents for creditors will be posted to a website rather than being delivered by post.
The Joint Administrators will produce a report to all known creditors and members within eight weeks of the appointment. This report is known as the Joint Administrators’ proposals and will outline steps taken by the Joint Administrators to date and the strategy going forwards. This report will be delivered via upload to the website following the issue of the website notice with the initial creditors letter.
The Joint Administrators are also required to provide a written update on the administrations to all known creditors every 6 months. This report will be published on the website within one month of every 6 month anniversary or earlier if an Administrator vacates office or an extension to the administration is granted.
What is the estimated timeframe for reviewing my claim and paying a dividend?
The administration process is complex and it takes time to assess the Companies’ position and provide an estimate of the value or timing for reviewing claims and making a distribution. The officeholders will include an update of dividend prospects and, if possible, a timeframe in their proposals and reports.
At this time we do not anticipate any dividends will be paid to unsecured creditors.
Will you refund the costs incurred in preparing a claim?
We are unable to refund the costs in preparing a claim. Consequently, we cannot refund any expenses incurred in obtaining information necessary to make a claim.
How to submit a claim
Our preferred method for creditors to submit claims and supporting documents is via the Turnkey (IPS) online portal, as this is the most efficient and cost effective way for us to deal with your claim and also allows you to better track its status, so we recommend the use of the online portal for claim submission.
In order to utilise this system, any creditors who have not received a letter with your unique login details within one month of the appointment, please contact us on uk_bullitt_claims@pwc.com
You can also download a claim form from our website via the Documents to Download page and either email it to the above address or post to
Bullitt Claims
PwC - CST
Merchant Square
20-22 Wellington Place
Belfast
BT1 6GE
All claims will not be confirmed upon receipt, but will be held on file for adjudication should the circumstances change and a dividend is likely to occur.
In preparation for submitting your claim please ensure that you have all relevant details such as your receipts, invoices or other documentation demonstrating the amount owed to you.
Supplier FAQs
When will I get paid?
Goods and services provided prior to the date of appointment will not be paid for.
However, you can submit a claim to the Joint Administrators for the amount you were owed prior to their appointment. If there are funds available, you may receive a dividend payment in due course, although at this time we do not anticipate there will be funds available for a distribution.
You will be paid on normal terms for any goods and services provided to the Company after the appointment of Joint Administrators, against a purchaser order signed by a member of the Joint Administrators’ team.
I have goods on site, can I get them back?
If you believe you have a Retention of Title claim over goods that you have supplied to the Company please contact the Administration team at uk_bullitt_queries@pwc.com who will deal with your enquiry.
If you believe you have a claim over leased assets that you have supplied to the Company please contact the Administration team at uk_bullitt_queries@pwc.com who will deal with your enquiry.
Am I required to continue providing service or supplies?
We do not envisage any requirement for this as the Joint Administrators will not be trading the Companies in administration, however, the Joint Administrators may request that you continue to supply goods and services to the Companies during the administration to help facilitate the realisation of assets.
Goods and services ordered by the Joint Administrators or their authorised representatives will be paid for by the administration estate.
All purchases will be ordered using a new sequence of purchase order forms. This will be signed by one of the authorised signatories whose names and signatures are shown on the suppliers letter, a copy of which will be made available to you.
What further information on the Administration will I receive?
The Joint Administrators will publish a report via the case website to all known creditors and members of the Companies within eight weeks of the appointments. This report is known as the Joint Administrators’ proposals and will outline steps taken by the Administrators to date and the strategy going forwards.
The Joint Administrators are also required to provide a written update on the administrations to all known creditors every six months. This report will be published to the case website within one month of every six month anniversary or earlier if an Administrator vacates office or an extension to the administration is granted.
If you have any further questions or issues please email us on: uk_bullitt_queries@pwc.com
