More than 100 unsecured creditors of a collapsed north-west firm have been told what they stand to recover from the remains of the business.
Insolvency practice Quantuma this week published its administrator’s progress report for the former industrial injury specialist Roberts Jackson, which was sold to Manchester firm AWH Legal just over a year ago.
It was previously stated the sold business had assets worth £3.4m – around half of which was made up of money tied up in work in progress.
The latest report, filed with Companies House, states that AWH has so far transferred almost £300,000 to the administration account in respect of debtor recoveries. Roberts Jackson had indemnified AWH against any legal action pursued by former directors in relation to their redundancy, and the report confirms that £115,000 was agreed in full and final settlement of all directors’ claims.
Administrators had estimated that unsecured claims might be worth around £13.7m: to date 109 claims have been received, adding up to £7.5m.
The dividend to be paid to these creditors is still not finalised, but administrators estimate it will be between 3.2p and 4.2p in the pound. These creditors are believed to include medical experts and other legal advisers.
Roberts Jackson operated a £4.25m revolving credit facility with NatWest with fixed and floating charges over its assets. The bank has retained cash of £273,000 which it held at the time of administrators’ appointment.
Private equity investor NorthEdge Capital, which acquired 43% of the issued share capital in 2014 and was owed £22.5m, has an inter-creditor agreement with the bank: around £2m has been made available from the firm’s assets to be distributed between preferential creditors.
As previously reported, national firm Pinsent Masons was instructed by the joint administrators to advise on the shut-down of Roberts Jackson, with around £24,000 paid in full already.
Joint administrators’ fees are fixed at 3.5% of the value of the total assets realised, together with a set £45,000 for the administration.