Speedferries: notice to creditors . . . shame

[just john]

I have just received the following which might be of interest; I would post the whole pdf if I knew how[:)]
I note that LD lines have paid £150K for the Speedferries database, (but not the web site speedferries which was retained);  the vessel and spares was sold to Prospect No 70 Limited (who on earth ? . . . ) for 8mil, whilst Ernst & Young racked up nearly three quarters of a mil, the majority of over 6mil went to Bank of Scotland.

I guess this means I really won't be able to use the rest of my tickets then[:)]

 

NOTICE TO ALL CREDITORS

Speedferries Limited (In Administration) (‘the Company’)

I write further to my appointment as Joint Administrator of the above company and attach a copy of the Administrator’s Progress Report in accordance with Rule 2.47(4) of The Insolvency Rules 1986.

As you will note from the progress report, there is no prospect of any funds becoming available to unsecured creditors.

Should you have any queries relating to this letter or any other aspect of the administration, please do not hesitate to contact Simon Cooper of this office on telephone number 0207 951 6300.

Yours faithfully
for Speedferries Limited (in administration)

Angela Swarbrick and Tom Burton
Joint Administrators

Attachments: Form 2.24B Administrator’s Progress Report
                    The progress report

The Institute of Chartered Accountants in England and Wales authorises A Swarbrick to act as an Insolvency Practitioner under section 390(2)(a) of the Insolvency Act 1986 and The Institute of Chartered Accountants of Scotland authorises T Burton to act as an Insolvency Practitioner under section 390(2)(a) of the Insolvency Act 1986.

The affairs, business and property of the Company are being managed by the Joint Administrators, A Swarbrick and T Burton, who act as agents of the Company only and without personal liability. 

[Dog]

The way administration is handled should be a national disgrace. It is a way for dodgy businessmen and dubious large accounting companies to make loads of money at the expensive of many honest people.

It is through this lax system which benefits the dishonest that led on to the banking fiasco and the politicians abusing the expenses allowances - because they know they will not be held responsible.

Limited liability should be ended and a better system be found to administer failed companies. I have attended various creditors meetings and they are run by triple barreled named crooks. I have told them this on many occassions and they always threaten to sue - strange that they have never gone through with it.

The biggest disgrace is the way the administrators can more or less charge what they like and often split the money with the directors of the failed company.

[PaulT]

[quote user="just john "]

I note that LD lines have paid £150K for the Speedferries database, (but not the web site speedferries which was retained); [/quote]

I wonder what position that puts anyone who elected not to have their details with other companies in?

[Iceni]

Probably very little that can be done. It was not Speedferries Ltd that sold the list.

Why would LD want to buy a Speedferries website ? I cannot imagine that there is much goodwill attached to the name.

John

 

[just john]

Goodwill or not anyone logging in to the site could be online to any info placed, (LD offer a discount to Speedferrie users) and although I lost quite a few trips, the cost of the others were still more than competitive so I would have no problem using a phoenix[8-|] 

[Will]

Speedferries operated a fast ferry service between Dover and Boulogne. LD Lines recently started to operate, among its other routes, a fast ferry service between Dover and Boulogne. So former Speedferries customers are a useful target for any marketing operation. I can't imagine anybody who used Speedferries would have a problem with LD, which is a proper shipping company with substantial finance behind it. The only potential stumbling block is that LD charges higher fares, which reflect the operating costs, unlike Speedferries which was never profitable.

It's an unfortunate sign of the times in the shipping industry that when the service was going well they couldn't get a second ship at virtually any cost (and LD Lines too could not find suitable ships for its services). Now it appears that the administrators have been very lucky to offload the former Speed One at a loss of only £5.5 million.

 

[just john]

I'm sure the shell company ''Prospect No 70 Limited'' showed their appreciation to someone,[Www] but just who were they and where is the vessel now? 

[Chancer]

Somewhere up the Thames estuary I think.

[just john]

Final notice apparently, Nothing to the unsecured creditors, but £887,731 to us the Adminstrators,

NOTICE TO ALL CREDITORS

Speedferries Limited (In Administration) (‘the Company’)

I write further to my appointment as Joint Administrator of the above company and attach a copy of the Administrator’s Progress Report in accordance with Rule 2.47 of The Insolvency Rules 1986.

As you will note from the progress report, there is no prospect of any funds becoming available to unsecured creditors.

Should you have any queries relating to this letter or any other aspect of the administration, please do not hesitate to contact Matthew Imison of this office on telephone number 0207 951 0050.

Yours faithfully
for Speedferries Limited (in administration)

Angela Swarbrick and Tom Burton
Joint Administrators

Attachments: Form 2.24B Administrator’s Progress Report
                    The progress report

The Institute of Chartered Accountants in England and Wales authorises A Swarbrick to act as an Insolvency Practitioner under section 390(2)(a) of the Insolvency Act 1986 and The Institute of Chartered Accountants of Scotland authorises T Burton to act as an Insolvency Practitioner under section 390(2)(a) of the Insolvency Act 1986.

The affairs, business and property of the Company are being managed by the Joint Administrators, A Swarbrick and T Burton, who act as agents of the Company only and without personal liability.
 

[NickP]

"Final notice apparently, Nothing to the unsecured creditors, but £887,731 to us the Adminstrators,"

This statement says it all about the financial and business institutions of any country you like to mention. Parasites

[Dog]

I have had various run ins with Administrators often they are from big accountacy firms with triple barreled names.

I have stood up in creditors meetings and voiced the opinion that the administrators are crooks. They have said that if I repeat this they will sue me so I always repeat the phrase. I was never sued.

They use the insolvency law in very closed ways to make lots of money themselves.

It is always rather interesting the companies that have no money and go bust can always afford the very best liquidators. One trick they employ is to charge very high fees and return money to the directors/owners of the bust company out of this fee after the company is quietly wound up. Now you understand why the most expensive insolvency firms are employed.

It is these sort of abuses and lack of morals in business that resulted in the banking crisis. Just go bust - don't pay the creditors - someone else will pick up the bill - we don't lose and phoenix next week.

The banking crisis will happen again because not one of them is being held responsible.

Limited liability for directors should end and company liquidations and winding up should be done by the CPS.

 

[Stan Streason]

[quote user="Dog"]I have had various run ins with Administrators often they are from big accountacy firms with triple barreled names.

I have stood up in creditors meetings and voiced the opinion that the administrators are crooks. They have said that if I repeat this they will sue me so I always repeat the phrase. I was never sued.

They use the insolvency law in very closed ways to make lots of money themselves.

It is always rather interesting the companies that have no money and go bust can always afford the very best liquidators. One trick they employ is to charge very high fees and return money to the directors/owners of the bust company out of this fee after the company is quietly wound up. Now you understand why the most expensive insolvency firms are employed.

It is these sort of abuses and lack of morals in business that resulted in the banking crisis. Just go bust - don't pay the creditors - someone else will pick up the bill - we don't lose and phoenix next week.

The banking crisis will happen again because not one of them is being held responsible.

Limited liability for directors should end and company liquidations and winding up should be done by the CPS.[/quote]

Showing your predudices or not? Yes big accountancy firms only employ people with triple barreled names - they are all crooks and its all a conspiracy with the banks.

It seems to me that you are the one going around making accusations yet not backing it up. If administrators are doing what you say then its illegal and if you can prove it then report it. If you cant then its just unfounded rumour.

You clearly believe that anyone who fails in business is a crook which is totally incorrect. Unfortunately the stigma attached to failure in this country is so great that people rarely get the chance to learn from their mistakes. The situation is not so bad in America where many of the most successful entrepreneurs have had a failure or two in their past.

Great remedy for future growth. End limited liability, prosecute all risk takers. Let the state do everything

[NickP]

"Yes big accountancy firms only employ people with triple barreled names

- they are all crooks and its all a conspiracy with the banks"

Sounds about par for the course to me. Accountants , financial "misinformers", estate agents & dodgy second hand car dealers, don't they all belong to that silly club with the rolled up trouser legs

[Iceni]

Not surprising - most of them eat meat as well.

Didn't realise that directors had limited liability - company law must have changed since my day.

John

[Dog]

No prejudice - just telling like it is.

Big accountancy firms have double or triple barreled name - not the employees - please read more carefully.

I have experienced administrators colluding with banks but it is very hard to prove in law as the administrators and banks have inhouse lawyers and deep pockets.

The administrators that I dealt with in the case of the football club were exposed on TV they filmed a meeting where the administrators offered to over charge and give back money.

I clearly do not believe that every business failure is a crook but plenty are - it is too easy in UK to milk a company, exploit easy credit, and employ expensive firms of accountants to quietly wind the company up and phoenix it - in a back door cut price sale to a holding company.

Ever wondered why limited companies often have three companies registered with similar names - fold one and the name stays the same or nearly the same, shedding debt.

I think state intervention should be kept to an absolute minimum but at the moment juggernauts are being driven through lax and inept laws regarding insolvency.

Please justify the pay of an insolvency practioneeer C£900 per hour)and his secretarial services C£200 per hour.

These prices are criminal and a case of profiteering in a recession.

Have you ever been in business - you seem remarkably uniformed.

 

[Dog]

[quote user="Iceni"]Not surprising - most of them eat meat as well. Didn't realise that directors had limited liability - company law must have changed since my day. John[/quote]

The company has limited liability. Sorry I could have phrased the sentence better but you are nit picking. Company law is so lax it is an open invitation for crooks in suits to exploit the system.

[Dog]

[quote user="NickP"]"Yes big accountancy firms only employ people with triple barreled names - they are all crooks and its all a conspiracy with the banks"

Sounds about par for the course to me. Accountants , financial "misinformers", estate agents & dodgy second hand car dealers, don't they all belong to that silly club with the rolled up trouser legs
[/quote]

Is this the first time you have lost money in this situation? Why didn't you go to the creditors meeting it's a black comedy run 'strictly legally' in the interests of the administrator and his client.

Certainly estate agents, bank employees and insolvency firms profit nicely in a down turn - they are also exactly the people that have time to socialize at the local lodge.

The reason they get away with it is few people have the time and energy to pursue these corrupt practices and it's not the British way to upset the applecart.

[NickP]

[quote user="Dog"]

[quote user="NickP"]"Yes big accountancy firms only employ people with triple barreled names - they are all crooks and its all a conspiracy with the banks"

Sounds about par for the course to me. Accountants , financial "misinformers", estate agents & dodgy second hand car dealers, don't they all belong to that silly club with the rolled up trouser legs

[/quote]

Is this the first time you have lost money in this situation? Why didn't you go to the creditors meeting it's a black comedy run 'strictly legally' in the interests of the administrator and his client.

Certainly estate agents, bank employees and insolvency firms profit nicely in a down turn - they are also exactly the people that have time to socialize at the local lodge.

The reason they get away with it is few people have the time and energy to pursue these corrupt practices and it's not the British way to upset the applecart.

[/quote]

I never lost any money at all in this "situation" We only used the Speed ferry once, and it had all the hallmarks of a failure about to happen.So we went back to the Tunnel , which we think is the best, most comfortable and economical way to travel between France and the UK. My written  thoughts are just my opinions of the old school clubs that run the the above "services", Charlatans to a man/woman.

[PaulT]

Each Sunday I read the 'Questions of Cash' feature in the MoS. The journalist uncovers some amazing things but until it is far too late the various bodies who should oversee businesses do nothing until it is far too late.

In several instances company directors have been involved in several failed companies, always taking peoples money with them.

As someone looking in it always seems to me that companies are too cossetted with the directors being very shielded from responsibility.

Paul

[Stan Streason]

Give me strength. Seeing something on TV or in the Mail does not mean that it is the universal truth and you should base your opinion on it.

I will restrict myself to a couple of points. I have been a practising accountant for over 25 years. In that time I have been with one of the triple barreled names (although it was only double barrel when I was there) I have been with just a slightly smaller firm (but with a large insolvency department) and my current firm is much smaller and does not do this work.

In all this time I have probably had 6 clients go into liquidation. In every one it was a heartbreaking decision forced upon them for differing circumstances. In each one the director/owners lost their livings and in a couple of cases all of their assets to meet personal guarantees. Branding them (and thousands like them) as crooks is just plain wrong.

As for administrators, most banks have panels of firms they would be prepared to appoint which have pre agreed charge out rates. Insolvency practices do make money in what for everyone else are difficult times but they dont make money when everyone else is making hay.

Quoting one isolated charge out rate is pointless unless you also know how many hours were charged and what type of work it entailed

[velcorin]

Absolutely 100% agree with Stan Streason. Globally, year to date I've dealt with 290 insolvencies, but none in the UK this year, totalling about EUR28million. It has not been a good year.

I've had a crash course in various countries insolvency laws and practice. Give me the UK system any day. In France a judge will grant a 2 year standstill order, whereby the current Management (who got them in this mess), gets 2 years to rip out every penny they can for themselves, then formally wind the company up. The creditors are guaranteed to receive absolutely nothing. Bear that in mind when you deal with an SA or SARL. In Germany a judge will grant an order which allows the banks up to 6 months to sell whatever assets they can find to cover their debt, the company is then wound up, and the creditors will get absolutely zero.

I've always found UK insolvency practitioners 100% scrupulous and honest, the directors absolutely divestated by the loss of their life's work. Maybe the Mail and the BBC has managed to find odd cases, but I haven't seen one, in 15 years. In general I would prefer that I deal with management that has been to the bottom, and come back, they know. 

My worse case scenerio is the old family firm, employing management that has the "right" genes, where the good managers with the "wrong" genes all leave because they won't get the top jobs, and the "family" all pay themselves well, for nothing. Probably the reason why 90% of this years insolvencies have been in Germany[:@]

[Iceni]

Interesting that no-one seems to blame the company directors and managers for running Speedferries so badly that the company sank.

John

[just john]

I understood that Speedferries was trading in the black but without enough trading capital and not fast enough for the banks, who pulled the plug, (and probably were not influenced by Speedferries competition). Certainly I am in favour of directors who offer a reasonable service at very competitive rates and as far I can tell in this case were not ripping the company off. I am slightly puzzled that the banks can offer E&Y this kind of dosh to wind a company up but not enough to keep the company trading (except in the case of the tunnel perhaps). I am also fascinated by what happened to the vessel and spares sold to Prospect No 70 Limited (who on earth are they? . . not some shell company set up to ensure that the vessel does not go to a another competitor . . . .?

 

[Stan Streason]

[quote user="Iceni"]Interesting that no-one seems to blame the company directors and managers for running Speedferries so badly that the company sank.

John[/quote]

If they did it will come out in the administrators report and they will be rightly blamed. My argument is that this should not be the default position before the facts are known

[Stan Streason]

actually I knew nothing of the facts behind speedferries before starting on this thread. Before anyone else starts bandying about blame, all the facts and reports are on the Speedferries web-site including a detailed analysis of administrators time costs. This shows that at partner/director level (£700 per hour not 900 as previously stated) only 55 hours were charged by far the largest amount on employee matters. This is out of just under 3000 hours charged in total.

Reading the reports briefly it seems like the company was always undercapitalised and when fuel costs and currency costs went against them, losses spiralled. The ship was actually impounded by the French for over £1m of unpaid fees and therefore income had stopped. The bank could not stump these up as it would have been deemed to have been a preference in any case. Even some secured creditors remained unpaid.

I have no idea who the purchasers of the ship were but read the reports - the company received only derisory offers to be sold as a going concern and the offer finally accepted was the biggest one available. It was still £8m. Bank of Scotland received about £6m of the £10m owed to it so they effectively funded the administrators.