Editor: Pat Williams. E-mail pwilliams@creditman.co.uk
John Arnold. E-mail jarnold@creditman.co.uk
Site: Business Credit Management UK
URL: http://www.creditman.co.uk
Issue: 116
Dated: 27 June 1999
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKTURNAROUND CONTINUES IN MANUFACTURERS' OUTPUT EXPECTATIONS DESPITE WEAK EXPORTS - CBI
Manufacturers are expecting output to increase over the next four months. Their expectations have continued to be positive for two consecutive months after being consistently negative for more than a year, according to the Confederation of British Industry's monthly Industrial Trends Survey out last Thursday.
Manufacturers' total order books weakened a little further between May and June. Although order books are still significantly below normal there has been a marked improvement on the end of last year and the first four months of this year.
The survey shows that 14 per cent of manufacturers reported that total order books are above normal while 39 per cent said that they were below. This gives a negative balance of minus 25 per cent and compares with minus 21 per cent in May and minus 32 per cent in April.
Export order books were unchanged over the past month, remaining a little less weak than in March and April. Ten per cent of firms report that orders are above normal while 52 per cent report that they are below normal, giving a negative balance of minus 42 per cent. While there has been some improvement compared with the lows reported last Autumn, there is persistent weakness in export demand. Sterling averaged euro 1.54 (DM3.01) over the survey period compared with euro 1.52 (DM2.97) in May's survey and this is adversely affecting exports.
Stock levels are still more than adequate to meet expected demand but to a lesser extent than in the first quarter of the year.
Manufacturers still expect domestic prices to fall over the next four months although there are signs in the survey that the downward pressures may be starting to ease. June's price expectations are the least negative in a monthly survey since May 1998.
Sudhir Junankar, the CBI's Associate Director of Economic Analysis, said: "The survey points to a slight weakening in total order books over the past month. However the underlying picture is more encouraging, consistent with the gradual improvement in domestic demand. Manufacturers remain more hopeful of raising output in the coming months, and are facing less severe downward pressures on their domestic prices. But with export demand weak and sterling going up against the euro, this may yet hold back a manufacturing recovery."
ROVER DEAL HERALDS NEW APPROACH TO STATE AID FOR INDUSTRY
Details of a ground-breaking deal to protect tens of thousands of jobs by transforming the BMW Rover plant into a world class facility were unveiled last week by Stephen Byers, Secretary of State for Trade and Industry.
He announced that the Government would provide £129 million of Regional Selective Assistance in six instalments, with the final instalment due in April 2004.
In addition there will be a local package worth £23 million consisting of contributions from Birmingham City Council, the local Training and Enterprise Council and the new Regional Development Agency.
Commenting on the agreement which will safeguard nearly 9,000 jobs at Longbridge and an estimated 50,000 jobs indirectly in the West Midlands, Stephen Byers said:
"This is great news for Longbridge, the West Midlands and the country as a whole. The Government looks forward to working with BMW to ensure the success of Longbridge and all its car plants in the United Kingdom.
"BMW's application for financial assistance is the first major application for government support that I have had to consider as Secretary of State.
"I was not prepared to deal with this in the traditional way by simply making a substantial payment to BMW. Instead I wanted the Longbridge agreement to be one which heralded a new approach to government assistance to industry - a new approach which reflects a long term commitment and not a quick fix. That is why I sought guarantees on productivity targets, raising skills and substantial investment from the company itself. Guarantees have been given in all these key areas.
"Because we were breaking new ground the negotiations were, of necessity, complex and detailed. I thank BMW for the constructive way in which they have conducted themselves throughout these discussions.
"The phasing of the £129m RSA over six instalments is essential in order to link financial support to productivity targets, and the bulk of the support will come in the final three instalments (£30 million in 2002; £26 million in 2003; £26 million in 2004). This will give time for the investment in improving skills and the development of the new plant to take place.
"This deal shows the way forward. A new approach fit for the century ahead. A new approach which safeguards tens of thousands of jobs but in doing so recognises that for those jobs to be secure in the long term they need to be based on investment, productivity and skills.
"The workforce at Longbridge, BMW and the Government have all shown commitment to this project.
"The future is an exciting one, and I look forward to Longbridge taking on its competitors, winning and becoming a world leader."
BMW Group invested £400 million at the Oxford plant to produce the recently launched R75.
CBI PRESIDENT RAISES FEARS ABOUT TRADE UNION PARTNERSHIPS
CBI President Sir Clive Thompson is to warn against a possible damaging build up of trade union influence, hidden behind the new buzzword "partnership".
Speaking last Thursday at the annual dinner of the South East CBI, Sir Clive reminded business leaders that good workplace relationships are achievable without trade unions. And he cast doubts on the legitimacy of European-level meetings between organisations representing unions and employers.
"I believe strongly in partnership between a company and its employees, but I fail to see that a union is necessary to make it work. We mustn't fall into the trap of thinking partnership must mean unions. Of course it can and sometimes does, but what's right for one company is by no means right for all."
Sir Clive criticised the idea of European Social Partnership, the name given to the pan-European-level talks that can lead to unhelpful labour market regulation. "European Social Partnership is an old-fashioned solution. Another bureaucratic structure increasing the importance of the unions and their European representative body, ETUC".
He will question whether ETUC should speak for all employees when the majority are not in a union. The proportion of employees in union membership is only 30 per cent in the UK, 29 per cent in Germany and nine per cent in France.
"The fact is that unions are now the exception, not the norm. They mainly represent people in long-standing manufacturing industries and public services. Their presence is small or non-existent in service companies, high-tech firms and start-ups - and this is exactly where employment is really growing."
Sir Clive will add: "By all means let's have partnerships - partnerships that really are between employers and employees. Let's have union involvement, but only where companies believe they can genuinely add value.
"Let's not have further added bureaucracy and red tape that makes business less competitive and harms employment prospects."
PAY SETTLEMENTS FALL AGAIN AS DOWNWARD PRESSURES INTENSIFY - CBI
Manufacturing and service sector pay settlements have fallen again, according to a Confederation of British Industry survey out last Monday.
The latest CBI Pay Data Bank survey shows manufacturing pay settlements averaged 2.8 per cent in the three months to April 1999. This compares with 2.9 per cent in the three months to January 1999 and 3.5 per cent a year ago. Service company pay awards averaged 3.4 per cent in the three months to April 1999, compared with 3.8 per cent in the three months to January 1999, and 4.1 per cent a year ago.
In manufacturing, pressures keeping pay awards down have intensified since last summer. Forty-six per cent of manufacturers said their inability to increase prices have kept pay awards down since last August, this was followed in importance by low profits (37 per cent), low orders (26 per cent), and the risk of redundancy (18 per cent). The number of firms citing their inability to increase prices as a pressure keeping pay awards down is at its highest level for five years.
In contrast only twenty-eight per cent of manufacturers said the cost of living has been pushing pay awards up, compared with 39 per cent a year ago. Fifteen per cent said the need to recruit and retain labour has increased settlements, down from 21 per cent in the previous pay year.
Twenty-two per cent of service sector firms indicated low profits as a pressure keeping pay awards down, compared to 13 per cent a year ago, this was followed in importance by inability to increase prices (17 per cent) and cost of living (15 per cent). Thirty-seven per cent of service firms indicated the need to recruit and retain labour was a significant pressure pushing pay awards up, followed by the cost of living (32 per cent). These upward pressures have eased when compared to a year ago when recruitment and retainment of labour was at 40 per cent and the cost of living was at 43 per cent.
Commenting on the results, Kate Barker, CBI Chief Economic Adviser, said: "It is no surprise to see settlements falling in manufacturing given the number of job losses the sector has suffered. However it is encouraging news for inflation that settlements are also declining in the service sector. Competitive pressures are clearly playing a part in pay restraint and contributing to weak inflationary pressure. This is further evidence that the recent interest rate cut was the right judgement."
SINGAPORE NEWS
Contributed by Bernice Kuo, mailto:bernicek@internationalcredit99.com
Information & Communications Technology 21The Singapore government unveiled a master plan to turn Information & Communications Technology 21 into a key growth economic sector for the industries in Singapore, as well as to develop its sector to attract investors, which will make Singapore a valuable partner to the investors. Information & Communications Technology 21 will play a major role in the new millennium, and Singapore's vision is to transform the country into a dynamic & vibrant global Information & Communications Technology capital with a thriving and prosperous Net economy by year 2010. Singapore has been ranked fourth most information-driven economy & society after US, Sweden, & Finland, by the industry research company IDC, and the country is expected to move up to No. 2 by year 2002.
Source: The Straits Times
We were delighted this week to read in the excellent credit magazine 'Credit Today' that our website at www.creditman.co.uk had been listed as an Internet credit resource as a "Site worth seeing"
If you are interested in subscribing to Credit Today you can contact them on 0171-940-484, by fax on 0171-940-4843 or email credittoday@compuserve.com
SMALLEST COMPANIES SEE THE LONGEST PAYMENT DELAYS
Smaller businesses are facing the longest payment delays according to the June edition of the Credit Management Quarterly Review published by the Credit Management Research Centre in association with the Institute of Credit Management (ICM). In the quarter from January to March 1999, smaller firms (with a turnover of less than £1million) had an average payment delay of 20 days. In contrast larger firms (with a turnover over £50million) have a reported payment period of just 9 days.
The University of Leeds' Credit Management Quarterly Review is based on a survey panel of 600 UK companies. Now in its second year, the Review is gaining increased recognition as a key source of information on credit management practice and trends in the UK.
The June survey also measures the average collection period (debtor days) among respondents at 51 days. This represents a reduction of 4 days on the previous quarter. The average payment period (creditor days) was measured at 45 days also representing a reduction of 3 days on the previous quarter.
Professor Nick Wilson, ICM Professor of Credit Management and Head of the Credit Management Research Centre says of the latest results, "the improvements in general economic conditions identified in our previous bulletin have continued. The average collection periods on trade debts show a slight decline over the past 12 months. However, this is perhaps more a reflection of improved trading conditions than changes in payment practice. Smaller firms still experience the longest overdue periods."
The Credit Management Quarterly Review is produced by the Credit Management Research Centre at Leeds University Business School, in association with the Institute of Credit Management. The aim of the new Review is to provide information on trends in credit management practice and to provide a reliable indicator of economic and business trends in the UK. Anyone wishing to participate in the quarterly surveys, or to subscribe to the Quarterly Review, should contact Paul Wetherhill on 0113 233 4478 (e-mail: pdw@lubs.leeds.ac.uk)
THE CREDIT MANAGEMENT RESEARCH CENTRE
The Credit Management Research Centre (CMRC) is based at Leeds University Business School. The CMRC has an ambitious programme, including: developing research and expertise in the management of trade and consumer credit, developing new techniques and technologies for credit risk assessment and modelling, providing advice and evidence on credit practice for government policy makers, hosting conferences, generating publications and introducing advanced and specialist courses, in particular a Masters degree, in credit management.
The Centre is headed by Professor Nick Wilson, the ICM Professor of Credit Management and supported by Barbara Summers, Lecturer in Consumer Credit and Paul Wetherhill, Research Assistant
PROFESSOR NICK WILSON, BA (Hons), PhD, FICM
Professor Nick Wilson was appointed to the ICM Professor of Credit Management in July 1993. Based for the first 5 years at the University of Bradford, he is now Head of the Credit Management Research Centre at Leeds University Business School. His current research includes: trade credit: theory and empirical analysis; credit management practice; corporate distress and failure prediction modelling; small firm working capital management and relationships with the banks; applications of neural network simulation in credit and financial management; business forecasting and market modelling techniques. His work has been published widely in academic journals covering economics, finance and business.
The Chair is funded by the following commercial sponsors:
| Institute of Credit Management | Barclays Bank plc |
| Dun and Bradstreet Ltd | Equifax Europe (UK) Ltd |
| EULER Trade Indemnity plc | G E Capital Global Consumer Finance Ltd |
| Griffin Credit Services Ltd | Moore Stephens Booth White |
| NCM Credit Insurance Ltd | Toshiba Information Systems (UK) Ltd |
BARBARA SUMMERS, BSC (Hons), MBA, MBCS, DipM
Barbara is a Lecturer in Consumer Credit whose research interests include the use of neural networks in credit decision making and the determinants of trade credit. Recent work has focused on issues such as late payment, bad debt and attitudes to statutory interest; the internalisation/externalisation of credit management functions, demand for trade credit, credit terms, neural network modelling on consumer and corporate credit data and the characteristics of neural risk models.
PAUL WETHERHILL, BA (Hons)
Paul has been recently appointed as Research Assistant with the CMRC. A graduate of the University of Huddersfield, Paul was previously employed by the Mid Yorkshire Chamber of Commerce and Industry and was responsible for the development and monitoring of European funded support programmes. Paul's research interests include small business growth and development and the links between trade credit and competitive strategy.
A GOOD YEAR FOR DTI INVESTIGATIONS, SAYS HOWELLS
The Government will continue its offensive to root out rogue companies who prey on the consumer, Kim Howells, Competition and Consumer Affairs Minister, said last week.
Publishing the results of DTI's company investigations, the Minister stressed that the public can help in tracking down rogue companies by reporting to the DTI any they suspect of being dishonest.
The results show 250 company investigations, including 21 investigations into insider dealing, were completed in 1998/99. In the same year 42 companies were wound up in the public interest and 20 directors disqualified.
Dr Kim Howells said:
"The Government is determined to do all that it can to protect the consumer from rogue companies. These figures demonstrate our success and commitment to achieving this aim.
"Rogue companies cannot be allowed to rip off consumers. The public can help to put them out of business by reporting any companies they suspect of being dishonest to the DTI".
Companies found to be acting against the public interest by DTI investigators can be wound up, the directors disqualified or criminally prosecuted. Anyone who knows of a company involved in dishonest activities should forward the information to the DTI.
Recent examples of companies wound up include:
Information on companies suspected of involvement in dishonest activities should be given in writing in full to the Companies Investigations Vetting Support Team, Department of Trade and Industry, Room 703, 10 Victoria Street, London SW1H 0NN.
Companies Investigation Branch (CIB) has a responsibility to use investigatory powers under the Companies, Insurance Companies and the Financial Services Acts to establish the underlying facts in cases of possible commercial wrong-doing where non-compulsory methods seem unlikely to be sufficient.
The branch has a wide remit to assess requests from the public and regulators for company investigations and to undertake confidential statutory enquiries, mostly under section 447 of the Companies Act 1985. Inspections are initiated under section 432 of the Companies Act 1985 and section 177 of the Financial Services Act 1986 (insider dealing). CIB also supervises such investigations and inspections when they are undertaken by private sector accountants, lawyers or others.
A booklet 'Investigations - how they work' on the working of the investigations system is available free from James Hunter, Company Law and Investigations Directorate, Department of Trade and Industry, Room 609, 10 Victoria Street, London SW1H 0NN.
Companies wound up last year by Companies Investigations Branch were:
The Government's determination to encourage enterprise and entrepreneurship was re-affirmed last week by Kim Howells, Competition and Consumer Affairs Minister.
Publishing the latest director disqualification statistics the Minister said that one way to allow entrepreneurship to flourish was to disqualify those directors that abused the system.
The Minister added that entrepreneurs and responsible risk takers could only benefit from the creation of a level playing field created by the removal of unfit directors.
The statistics show that 1,284 directors were disqualified in 1998/99, an increase on the previous year.
Dr Kim Howells said:
"For enterprise to flourish and grow in the UK, entrepreneurs, business and the public must be confident that directors who deliberately set out to disadvantage their creditors or abuse their limited liability status will be disqualified.
"The Government intends to strike the right balance between encouraging and promoting enterprise, whilst ensuring that irresponsible risk taking is discouraged."
The disqualification statistics relate to the directors of failed companies in liquidation, administrative receivership or administration. For a director to be disqualified, there must be evidence of unfit conduct - commercial misjudgement is not sufficient - this conduct could be for example, gross negligence, or total incompetence.
Recent examples of disqualifications are:
David Andrews, Orchard Cottage, Higher Lane, Lymm, Cheshire was disqualified from acting as a director for eight years at Manchester County Court on 22 April 1999. Reasons for disqualification included failure of GC Packaging Engineers Ltd to comply with its statutory obligations to government departments by failing to lodge VAT returns.
James Terence O'Neill, Cranespark Avenue, Surbiton was disqualified from acting as a director for five years at Kingston upon Thames County Court on 14 April 1999. Reasons for disqualification included that he allowed the company to continue to trade for a period of more that two years when he knew, or ought to have known, that the company was insolvent and that there was no prospect of the company's creditors being paid.
The public can report disqualified directors to the Directors Hotline on 0845 601 3546 if they believe they are acting as a director again.
Section 6 of the Company Directors Disqualification Act 1986 allows the court to make a disqualification order of between two and 15 years for unfit conduct as a director. This is the section used by The Insolvency Service.
MONTHLY DIRECTOR DISQUALIFICATION STATISTICS
1998/99 (12 MONTHS ENDED 31 MARCH 1999)
1998/99 1997/98
Disqualification reports and returns received (companies)
Official Receivers 2,366 2,002
Insolvency Practitioners - England & Wales 3,302 3,195
- Scotland 196 191
TOTAL 5,886 5,388
Disqualification proceedings commenced (directors)
From Official Receivers' reports 395 450
From Insolvency Practitioners'
reports - England and Wales 856 899
- Scotland 80 70
TOTAL 1,331 1,419
Disqualification orders made by courts
From Official Receivers' reports 408 390
From Insolvency Practitioners'
reports - England and Wales 821 820
- Scotland 55 57
TOTAL 1,284 1,267
MONTHLY DIRECTOR DISQUALIFICATION STATISTICS
QUARTER 1 (3 MONTHS ENDED 31 MARCH 1999)
Q1 Q1
1999 1998
Disqualification reports and returns received (companies)
Official Receivers 804 506
Insolvency Practitioners - England & Wales 845 732
- Scotland 48 43
TOTAL 1,697 1,261
Disqualification proceedings commenced (directors)
From Official Receivers' reports 278 240
From Insolvency Practitioners'
reports - England and Wales 304 285
- Scotland 33 33
TOTAL 615 558
Disqualification orders made by courts
From Official Receivers' reports 74 131
From Insolvency Practitioners'
reports - England and Wales 200 204
- Scotland 21 26
TOTAL 295 361
TYPE OF BUSINESS AND THE GEOGRAPHICAL SPREAD OF DISQUALIFICATIONS
Quarter 1 - 1999 Types Of Business No of
Directors %
Labour Supply: Management & Business Services 42 14%
Texture & Clothing Manufacture 38 13%
Construction & Demolition 26 9%
Manufacturing (other types) 25 8%
All Wholesale 22 7%
Retail (other types) 20 7%
Home & Garden Improvement 29 6%
Engineering 18 6%
Motor Vehicles, Sales, Repairs & Petrol 10 3%
Computer Services 9 3%
Leisure: Hotels, Pubs & Restaurants 8 3%
Furniture Manufacture & Retailers 8 3%
Transport & Communications 8 3%
Paper & Publishing 8 3%
Estate Agents & Developers 7 2%
Travel Agents 5 2%
Others 22 7%
TOTAL 295 100%
Geographical Spread
London & South East 102 35%
North 72 24%
Midlands 57 19%
East Anglia 5 2%
South 11 4%
South West 18 5%
Scotland 21 7%
Wales 9 3%
TYPE OF BUSINESS AND THE GEOGRAPHICAL SPREAD OF
DISQUALIFICATIONS YEAR ENDED 1998/1999
Types Of Business No of
Directors %
Construction & Demolition 148 12%
Textile & Clothing Manufacture 124 10%
Retail (other types) 110 9%
Labour Supply: Management & Business Services 107 8%
Manufacturing (other types) 104 8%
All Wholesale 73 6%
Paper & Publishing 65 5%
Furniture Manufacturing & Retailers 62 5%
Transport & Communications 61 5%
Home & Garden Improvement 57 4%
Engineering 52 4%
Computer Services 49 4%
Estate Agents & Developers 38 3%
Motor Vehicles, Sales, Repairs & Petrol 30 2%
Leisure: Hotels, Pubs & Restaurants 29 2%
Travel Agents 15 1%
Others 180 12%
TOTAL 1284 100%
Geographical Spread
London & South East 472 37%
North 307 24%
Midlands 214 17%
East Anglia 49 4%
South 70 5%
South West 60 5%
Scotland 64 5%
Wales 48 4%
TOTAL 1284 100%
BULLERS PLC - ALL DIRECTORS BANNEDOn 4 May 1999 in the High Court of Justice, London, David James Coulter Cunningham ("Mr Cunnigham") of 5 Coniston Close, Horsham, West Sussex, RH12 4GU, was disqualified from inter alia acting as a director of and taking part in the management of a company for 12 years for his conduct as a director of Bullers Plc ("Bullers") and Clashfleet Limited ("Clashfleet"). Mr Cunningham was previously subject to a disqualification order of 3 years made in the Birmingham District Registry on 11 December 1995, in relation to Powered Access Limited.
In a reserved judgement delivered on 9 June 1999 in the High Court of Justice, London, David McGurk ("Mr McGurk") of Crown House, 191 Silver Street, Stanstead Mountfitchet, Essex, CM24 8HB, Gary Hegarty ("Mr Hegarty") of 1 Wilton Avenue, Chiswick, London, W4 2HX, Brian Philip Wiseman ("Mr Wiseman") of 8 Green Lane, Burnham, Buckinghamshire, SL1 8DR and Martin Bartlett Duffy ("Mr Duffy") of 5 Helding Close, Broomfield, Herne Bay, Kent, CT6 7EF were disqualified from inter alia acting as directors of and taking part in the management of a company for their conduct as directors of:
Mr Duffy was disqualified for a period of 6 years. Mr Hegarty and Mr Wiseman were both disqualified for a period of 8 years. Mr McGurk was disqualified for a period of 10 years.
Bullers, whose last principal trading address was 62 Burlington Arcade, Piccadilly, London, W1V 9AF, was engaged in business as an investment company and was placed into liquidation on 25 April 1997 (having been placed into administrative receivership under the terms of a debenture in favour of Barclays Plc on 10 October 1995) with an estimated final deficiency as regards creditors of £1,166,232.
Clashfleet, whose last principal trading address was 29-35 Lexington Street, London, W1R 3HQ, was engaged in business as a post production studio and was placed into liquidation on 25 April 1997 (having been placed into administrative receivership under the terms of a debenture in favour of Barclays Plc on 10 October 1995) with an estimated final deficiency as regards creditors of £1,046,497.
Proceedings were brought by the Secretary of State under Section 6 of Company Directors Disqualification Act 1986 following a report by the administrative receiver and in the light of information provided by Companies Investigation Branch, following their extensive investigation into the affairs of both Bullers and Clashfleet under Section 447 of the Companies Act 1985.
In relation to Mr Cunningham alone, matters of unfit conduct included in the Statement of Facts Not in Dispute, agreed between TheSecretaryy of State for Trade and Industry and Mr Cunningham, included the director:
Bullers
Classfleet
The Court was advised of various matters in mitigation which had been put forward by the Defendant and this served to reduce the period of disqualification being sought against him.
In relation to Mr McGurk, Mr Hegarty, Mr Wiseman and Mr Duffy, matters of unfit conduct found by the court included:
Bullers
Clashfleet
The Court was advised of various matters in mitigation which had been put forward by Mr Hegarty and this served to reduce the period of disqualification being sought against him.
Section 6 of the Company Directors Disqualification Act 1986 allows the Court to make a disqualification order of up to 15 years for unfit conduct.
Requests for further details should be made in the first instance to DTI South East Tel: 0171 261 8813 Fax: 0171 928 6974.
Solicitors for the Insolvency Service are Howes Percival of the Guildyard, 51 Colegate, Norwich, NR3 1DD.
The Insolvency Service's Hotline number is 0845 3546
JOHN KEVIN ASHCROFT AND COLIN GRAHAM FYNLO CORLETT DISQUALIFIED AS DIRECTORS
In the High Court, Newcastle on Monday 21 June 1999 two of the former directors of Survival Group Limited were disqualified from acting as company directors or managers. John Kevin Ashcroft of Crabtree House, Hill House Lane, Brindle, Chorley was disqualified for three years. Colin Graham Fynlo Corlett of 3 Rose Paddock, Heads Nook, Carlisle was disqualified for two years.
Survival crashed in March 1993 with debts estimated in the region of £2,000,000. The company's principal business was in the retail of outdoor clothing and survival equipment. Mr Ashcroft took over the helm as chairman and chief executive in 1991, following the collapse in March 1990 of his previous venture, Coloroll plc.
Mr Ashcroft led Survival through a period of rapid expansion. It was this expansionist policy coupled with poor trading performance and ultimately a lack of investment which led to Survival's collapse. During this period, Mr Corlett was the financial director.
In banning Mr Ashcroft and Mr Corlett from acting as company directors His Honour Judge Behrens found that from September 1992 onwards, they had caused Survival to continue trading whilst insolvent at the risk to its creditors. Survival could not pay its creditors as they fell due at a time when trading conditions were difficult and it was required to reduce its overdraft to nil. At the same time Survival continued with its expansion programme opening three shops and incurring further liability to creditors of over £100,000. Cheques to creditors were systematically and repeatedly dishonoured. Suppliers increasingly refused to supply further stock; Crown money started to be used to assist in the increasing cash crisis and there was a deliberate policy of paying selected creditors. In reality the method of trading adopted by Mr Ashcroft and Mr Corlett was such that the risk of failure - which was increasing by the day - was thrown upon creditors.
In addition the Judge found that from October 1992 the board were misled by Mr Ashcroft (who the Judge described as a somewhat evasive witness) as to the attitude of Survival's bankers towards its account. The board did not appreciate that the borrowing had to be reduced to nil.
Mr Ashcroft, who is a director of several other companies is seeking leave to continue to act as a director of a number of companies. Both Mr Ashcroft and Mr Corlett were denied leave to appeal by the trial judge.
*** Forthcoming Creditors Meetings ***
Contributed byhttp://www.insolvency.co.uk
For more detailed information and ALL the British Isles insolvency's (liquidation's, receiverships, administrations, dividends, creditors) please visit http://www.insolvency.co.uk
From 28/06/99 to 06/07/99 Number of Creditor meetings : 177 Section Company Time Venue 138 Scotland - Interim Liquidator calling Creditors Meeting 28/06/99 Ayrshire Time Lines Ltd 03.00 pm Hamilton Redmore Recycling Ltd 02.00 pm Hamilton 30/06/99 Axom Decorators Ltd 10.30 am Edinburgh 05/07/99 Glencairn Ltd 11.00 am Glasgow 06/07/99 Grampian Insulation Services Ltd 11.00 am Aberdeen JPP Technologies Ltd 10.30 am Edinburgh Les (Industrial Maintenance) Ltd 11.00 am Aberdeen 23 Administrator Calling a meeting of Creditors 28/06/99 Harlow Cycling Stadium Ltd 11.00 am Epping 30/06/99 Crystal Palace FC (1986) Ltd 11.30 am London 02/07/99 Premier Products Support Serv Ltd 11.30 am York Rhondda Waste Disposal Ltd 11.00 am Cardiff 06/07/99 New Image Photographics Ltd 10.30 am Nottingham 48 Receiver calling unsecured Creditors Meeting 28/06/99 Merechoice Communications Ltd 11.00 am Brighton Merechoice Components Ltd 11.00 am Brighton Merechoice Holdings Ltd 11.00 am Brighton 29/06/99 Azuna Ltd 12.00 pm Manchester George Banks Management Services Ltd 12.30 pm Manchester Gilleade and Ashworth Ltd 10.00 am Manchester J Walsh (Footwear) Ltd 11.00 am Manchester 01/07/99 Revelation Piccadilly Holdings Ltd 10.00 am London 05/07/99 Diametric Holdings Ltd Petersfield Diametric Ltd Petersfield 95 Members converting to Creditors Voluntary Liquidation 28/06/99 R G Packers (Kings Lynn) Ltd 11.30 am Peterborough 30/06/99 H W Realisations Ltd 03.00 pm Rotherham 98 Creditors Voluntary Liquidations 28/06/99 A P & N Christopher Plant Hire Ltd 02.00 pm Newport A1 1st Maintenance Ltd 02.30 pm Newcastle-u-Tyn Andrew Hotchkiss Ltd 10.30 am Nottingham Austin & Vickers (Mort & Finan Serv) L 11.00 am Twemlow Green Bito Ltd 10.00 am Swindon Chatham Masonic Ltd 12.00 pm London Classical Leisure Ltd 12.00 pm Manchester Cottage Bakery (Warwicks) Ltd - The 10.15 am Brimingham D & M Engineering Ltd 11.00 am Norwich G F Gagg and Sons Ltd 10.30 am Nottingham Galmoy Properties Ltd 12.00 pm Bristol Jeffrey Brownleader Ltd 10.30 am Wembley Jollycare Ltd 03.00 pm London Leon Grant Ltd 10.30 am Sheffield Merit Ltd 04.00 pm London PDI Packaging and Distribution Ltd 03.00 pm Bedford QMA Construction Ltd 11.00 am Basingstoke Railink UK Ltd 03.00 pm London Rainbow Rock Co Ltd 02.00 pm Newport Remona Ltd 11.00 am London T Brady & Son Ltd 11.00 am Manchester Tiger Management Ltd 11.00 am London Vale Glass Ltd 11.30 am Cardiff Vidalmanor Ltd 11.00 am Birmingham Web Line Direct Ltd 12.00 pm London 29/06/99 Acor Ltd 12.00 pm Southampton Advantage Plastics Ltd 12.30 pm Manchester Airfield Commercial Vehicles Ltd 12.00 pm London Automated Detection Ltd 11.00 am Manchester B&M Furnaces Ltd 10.30 am Yarm Battersea Training Agency Ltd 10.30 am London Britannia Industrial Saws Ltd 11.00 am London C Crawley Ltd 12.30 pm Dartford Caad Systems Ltd 11.00 am London Carrington & Carr Ltd 10.15 am Bately Cheeseman Engineering Ltd 11.00 am Dartford Contact Marketing Communications Ltd 10.00 am London Crewrace Ltd 02.30 pm London Futurevisions Ltd 12.00 pm Reading Groupfirm Ltd 11.00 am Birmingham Industrial Heating & Pipework Ltd 11.00 am Cardiff L1 Realisations Ltd 11.00 am London Lasting Impression Ltd 11.00 am Edgware Lexington Post Ltd 11.45 am London Lynn Agricultural Ltd 11.00 am Norwich Nantwich Garments Ltd 10.30 am Stoke-on-Trent Nehra Cookes Chemicals Ltd 11.00 am Nottingham Obelisk Framing Ltd 11.00 am Sunderland P R Press (Leicester) Ltd 02.00 pm Halesowen Precision Turned Parts Ltd 10.30 am Droitwich Spa R M Hammond Ltd 10.30 am Peterborough Rea Brothers Wholesale Flowers Ltd 11.00 am Manchester Recruitment Personnel Ltd 02.00 pm London Regma (UK) Ltd 10.30am Northampton Request Direct Ltd 11.30 am Brighton Ribbleview Print & Design Ltd 11.00 am Blackburn Rowe Bakers of Distinction Ltd 10.30 am Nottingham Shop 70 Ltd 11.00 am London Solent Seamless Guttering Ltd 11.00 am Southampton Sure Seal Systems Ltd 11.30 am Southampton Switchserve Ltd 11.15 am London 30/06/99 Amir London Ltd 11.30 am London Armitage Typo/Graphics Ltd 10.30 am Halifax B J Engineering Ltd 11.00 am Weybridge Broadley Cast Stone Ltd 11.30 am Stockport Capital Reprographics Ltd 11.00 am London Conquest Systems (Midlands) Ltd 12.00 pm Manchester D C W Enterprizes Ltd 11.30 am Brighton Delvac Ltd 11.00 am Sileby Discount Clothing Ltd 12.00 pm Birmingham Electric Lock Ltd 10.15 am Leeds Euro Commercials Ltd 11.00 am Bristol Galega Ltd 10.45 am London Hyndburn Damp Proof & Timber Treat Ltd 11.30 am Blackburn Individual Wellbeing Ltd 10.00 am London JKR Interiors Ltd 10.30 am Dunfermline L & M Construction Services Ltd 11.00 am London London Asphalt & Roofing Ltd 12.00 pm London MPV Hire Ltd 10.30 am Southend-on-Sea Mas Cladding Ltd 11.30 am Coventry McFadyen Decorating & Drywall Ltd 12.00 pm Glasgow Midland Air Consolidators Ltd 10.30 am Birmingham P M C Distributors Ltd 10.10 am Sidcup Phair Communications Consultancy Ltd 10.30 am Peterborough R E B Ltd 03.00 pm London Rada Lighting Ltd 12.00 pm London Rainbow Fair Weather Join. (London) Lt 10.30 am Sutton Regency Timber Products Ltd 11.00 am Wolverhampton Sahlin & Co Ltd 11.00 am Lancaster Siltower Ltd 04.00 pm London Star Security Systems Ltd 02.00 pm London Total Cleaning & Hygiene Ltd 10.30 am Driffield Town & Country Nursing Home Ltd 12.00 pm Glasgow Tudor Homes (Medway) Ltd 12.00 pm London 01/07/99 Ashfern Consultants Ltd 11.30 am Chatham Balcon Ltd 04.00 pm London Beaver Building (ENG) Services Ltd 11.00 am Birmingham Concise Design Ltd 12.00 pm Ditchling Cressington Vehicle Rentals Ltd 11.30 am Altrincham Duba Ltd 11.30 am London Elite House Management Services Ltd 11.00 am London Gatwick Airparks Ltd 10.30 am Sutton Parts Express (Weybridge) Ltd 11.30 am Cobham Poolserve Ltd 11.30 am Lutterworth SFL Communications Ltd 11.30 am Liverpool Smeekley Transport Ltd 10.30 am Sheffield Splat Shack Ltd 11.00 am Edgware T P M Electrical Supplies Ltd 11.00 am Birmingham Whellans Builders Ltd 11.00 am Leith Wisevale Ltd 12.00 pm London 02/07/99 A M G Contracts Scaffolding Ltd 10.30 am London Access Property Services Ltd 11.00 am London Bush Hill Communications Ltd 11.00 am London Chantwood Ltd 11.00 am London Jameson Communications Ltd 11.30 am Chatham Jani Ltd 03.30 pm London Jazzy Ltd 12.00 pm Manchester M A Flynn & Co Ltd 10.30 am Manchester Marlow Technology Ltd 12.00 pm Farnborough Messrs Battistini & Co Ltd 03.30 pm Southampton Metric Three Ltd 11.00 am London P G Garages Ltd 11.00 am Basingstoke Pembrook Joinery Ltd 11.00 am Sunderland Pioneer Shops Ltd 10.30 am Wembley Premium Retreads Ltd 11.00 am Birmingham Quest International Ltd 11.30 am Blackburn S Jones Industrial Holdings Ltd 10.30 am Birmingham Skycap Ltd 12.00 pm Salford Wallasey Training Managers Ltd 10.30 am Liverpool Waltham Catering Ltd 04.00 pm London 05/07/99 A L F Electrical Contractors Ltd 10.30 am Tunbridge Wells Beta 2000 Ltd 10.30 am London Electrical Engineering Contracts Ltd 12.00 pm London Export Packaging Co Ltd 11.00 am Harpenden Hollycraft Plant Hire Ltd 11.00 am Swansea Hydroset Projects Ltd 02.00 pm Leicester J H Fearnley Ltd 12.00 pm Manchester Lazer 2000 (UK) Ltd 11.00 am Manchester Rick Prince Entertainment Services Ltd 11.00 am Birmingham Rock Bay Autos Ltd 10.30 am Sheffield Tombridge Bevel Co Ltd 11.30 am Tonbridge Vogue Furniture Group Ltd 10.30 am Nottingham Yorkshire Produce Co Ltd - The 12.30 am Bingley 06/07/99 Bravestore Ltd 11.30 am Nyetimber Daybreak Express Ltd 11.00 am Birmingham Dudley Catering Equipment Ltd 11.00 am Birmingham Electrotec Ltd 11.30 am Taunton House of Naylor Ltd 11.15 am London Leicester Parcel Co Ltd - The 11.30 am Lutterworth Logos IT Ltd 11.00 am London Prestwich Ltd 11.00 am Brighton Prima Engineering Ltd 02.30 pm London Trawlberry Ltd 11.00 am London
TW LW TW LW
USA 1.5812 1.5962 Canada 2.3283 2.3294
Austria 21.0302 21.3002 Portugal 306.401 310.343
France 10.0251 10.1538 Belgium 61.6523 62.4450
Finland 9.0870 9.2040 Italy 2959.24 2997.24
Germany 2.9892 3.0283 Sweden 13.3673 13.6263
Holland 3.3680 3.4113 Switzerland 2.4419 2.4743
Spain 254.291 257.560 Ireland 1.2037 1.2191
Australia 2.4054 2.4229 Denmark 11.3629 11.5021
Hong Kong 12.2667 12.3824 Euro 1.5283 1.5479
Africa Com 9.5869 9.6998 Saudi Arabia 5.9304 5.9861
India 68.5095 68.8520 Malaysia 6.0086 6.0656
Singapore 2.6909 2.7161 Norway 12.4125 12.6106
Japan 193.294 191.470
TW This week LW Last week.
WHITBREAD, made a 2.4 billion pounds ($3.8 billion) all-share bid for Allied Domecq's pub chain. Allied Domecq has rejected a rival offer of 2.7 billion pounds in cash from PUNCH TAVERNS, another pub group. Punch now says it will put it offer direct to Allied shareholders.
PEARSON, Britain's media group, agreed to sell its interests in Lazard's, an investment bank, to the bank's partners for 410m pounds ($647m). In a related deal, Lazard's sold 5% of its own stake in Pearson to Spain's telecoms giant, TELEFONICA, retaining 2%.
Britain's biggest bank by market capitalisation, LLOYDS TSB, plans to buy SCOTTISH WIDOWS, Britain's sixth-largest life-insurance company for 7 billion pounds ($11 billion). The deal will improve Lloyds' already broad base of financial-services provision.
Sir Richard Greenbury fell victim to the disastrous recent performance of MARKS AND SPENCER, a British retailer. His retirement as non-executive chairman came a year ahead of schedule, after pre-tax profits fell by 41% to 656m pounds ($1.1 billion) for the year ending March 31st.
Source - The Economist
MERGER CLEARANCE
Proposed acquisition by Seton Scholl Healthcare plc of London International Group PlcProposed acquisition by UGC Limited (Unipart) of Partco Group Plc
Proposed acquisition by ICI Chemicals and Polymers Limited of the synthesis gas catalyst business of Dytech Corporation Limited, a wholly owned subsidiary of J&J Dyson plc
Source - The Economist
13 September Wessex branch meeting of the ICM Clair Sandbrook - A day in the Life of a Sheriff & Woolf Update 15 September Merseyside & North Wales Branch of the ICM Annual Conference Business Fraud 10.00am - 5.00pm Series of speakers and an exhibition area For further information telephone David Browne on 0151-242-7742 or Lynne Mills on 0151-632-2938 8 October ICM Annual Dinner Drapers' Hall, London EC2 Guest speakers: Walter Merricks, Insurance Ombudsman Professor Geoffrey Woodroffe, Solicitor and Funeral Ombudsman Ticket price: #68.00 plus vat To book telephone the Institute on 01780-722907 or fax 01780-721271 12th to the 14th October 1999 Tuesday to Thursday Credit North 1999 at the Royal Armouries, Leeds1 25 October Wessex branch meeting of the ICM Experian - Non-Ltd database 17 - 19 November 1999 Wednesday to Friday International Credit Exhibition & Conference Raffles City Convention Centre The Westin Stamford, Singapore http://www.internationalcredit99.com Mailto:info@internationalcredit99.com # = pounds sterling
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