Creditors

Creditor FAQs

What has happened?

Toby Banfield, David Kelly and Edward Macnamara of PwC have been appointed as joint administrators of the Companies. They were appointed on 6 August 2020, except in respect of Travelex Banknotes Limited where they were appointed on 21 July 2020.

Following their appointment, the joint administrators are pleased to announce the successful completion of the restructuring of the Group, including the sale of the Companies business and assets to Travelex Acquisitionco Limited. The purchaser is a special purpose vehicle controlled by certain of the holders of Travelex’s Senior Secured Notes, one of the secured lenders to the Group.

I am owed money, what notification will I receive?

The joint administrators will write to all known creditors of the Companies (as recorded by the Companies) around one week after the appointments, to formally inform them of the administration appointments.

Administration

With the above notification, the joint administrators will send the following two documents:

1.    An initial letter to creditors explaining the key consequences of the administrations, the rights of creditors and a “SIP16” report detailing the sale of the business and assets;

2.    A statement of the administrators proposals for achieving the purpose of the administrations. This will include an estimate of what creditors may recover and set out the work the joint administrators still need to do.

The administrators are also required to provide a written update on the administrations to all known creditors every six months. Reports will be available at www.pwc.co.uk/travelex within one month after every six month anniversary, or earlier if an administrator vacates office or an extension to the administration is granted. 

Delivery methods

The joint administrators’ initial notification (see above) 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 mail.

Opting Out

Creditors have the right to elect to opt out of receiving certain documents about insolvency proceedings. Any election to opt out will not affect a creditor’s entitlement to receive dividends, should any be paid to creditors. Further details on opting out will be provided by the administrators in their initial communications with creditors.

When will I get paid?

Payment for goods and services provided prior to the date of appointment will not be paid for as an expense of the administration estate.

However, all outstanding amounts at the date of the joint administrators’ appointment will be an unsecured claim in the administration.  You can submit a claim with the administrators for the amount you were owed prior to their appointment. The joint administrators currently estimate that a dividend may be available in certain (but not all) of the Companies, and further information will be provided in their statement of proposals.

We will shortly be providing guidance on how to submit a claim via an online creditors portal.  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.

If your claim includes VAT, you may be able to obtain VAT bad debt relief six months after your supply. Your local VAT office can help you with this.

You will be paid on normal terms for any goods and services provided to the Companies after the joint administrators’ appointment, but only for those supplies that are made against a written order (purchase order and/or letter of undertaking) signed by one of the joint administrators or an authorised member of our PwC team.  Please see the Suppliers section on our website for further details.

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 Companies, please contact the administration team at uk_travelex_creditors@pwc.com.

Am I required to continue providing service or supplies?

If you supply a Travelex company that has not entered administration, please get in touch with your normal contact at Travelex with regards to current or future orders and deliveries.

If you supply one of the Companies that have entered administration, your relationship manager at Travelex will be in touch to discuss next steps with regards to moving the existing contract that you have (with the company in administration), to a new Travelex entity owned by the purchaser. This would be necessary for contracts with Travelex Limited, Travelex UK Limited and Travelex Banknotes Limited which are all now in administration.

The joint administrators will manage the process for paying new invoices for any services required by the Companies in administration prior to a contract being novated. Your relationship manager at Travelex will be in touch to discuss next steps for any supply required by the Companies in  administration.  Please note that you should only supply one of the Companies in administration if you receive a signed purchase order from the administrators or their authorised representatives; or you separately agree ongoing supply with another Travelex entity.

Any goods and services supplied on the request of the administrators will be paid for out of the assets realised by the administrators, provided the order is in writing and signed by one of the joint administrators or their authorised representatives. Further details, including their specimen signatures and new invoicing details, will be provided in writing at the appropriate time.

If you have any questions, please reach out to your relationship manager at Travelex in the first instance.

How do I know what kind of creditor I am?

There are three main types of creditor:

●      Secured (split into security via fixed/standard and floating charges);

●      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. 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 would only receive a distribution in the unlikely event that 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.

Insolvency legislation sets out how the prescribed part is calculated and if it is applicable further details will be provided in the joint administrators’ reports to creditors.

Estimated timeframe for reviewing my claim and paying a dividend?

The administration (and potential liquidation process that follows) is complex and it takes time to assess the Companies’ position and provide an estimate of the duration or timing for reviewing claims and making a distribution. The administrators will include an update of dividend prospects and, if possible, a timeframe in their proposals and subsequent reports.

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.

Other Queries

Please contact uk_travelex_creditors@pwc.com