Creditors
What type of creditor am I?
Creditors are classified as to the type of claim they have, these types will determine the quantum of distribution they will receive as the funds for each type is ring fenced.
The three main types of creditor are:
• Secured;
• Preferential; and
• Unsecured.
Secured creditors have security registered at Company House.
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 (these are known as first ranking preferential creditors).
From December 2020, certain aspects of HMRC’s claim will rank as a secondary preferential creditor (paid after the preferential element of employee 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.
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 further information will I receive?
The Joint Administrators will write to all known creditors of the Companies (per the creditor list obtained from the Company’s 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. This will include our report explaining and justifying why a pre-packaged sale was undertaken, including alternatives considered.
The Joint Administrators will also produce a report to all known creditors and members. 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 report referred to above. Where a prepackaged sale of a company’s business and assets has been effected on appointment, our proposals should be published within 7 days of our appointment (or as soon as possible, thereafter). We therefore expect them to be published on our website on 29 December 2023.
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.
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 progress reports.
How to submit a claim
If you would like 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. Your unique login details will be sent to you separately. In order to utilise this system, any creditors who have not received a letter with your unique login details within three weeks of the appointment, please contact us at uk_stanleygibbonscreditors@pwc.com
In preparation for submitting your claim please ensure that you have all relevant details such as your order confirmation or receipt, invoices or other documentation demonstrating the amount owed to you.
