Firm drives cash deal for creditors or motor dealership

3rd June 2008

Cash in hand: delighted creditors receive 15p in every £1 owed to them thanks to work by accountancy and financial services group

Smith & Williamson following the liquidation of motor trade dealership Charvill Brothers Ltd near London

Smith & Williamson has distributed more than £247,000 to date to nearly 200 creditors after a car dealership near London hit skid row.

The Southampton office of the accountancy and private investment group has been able to pay out 15p in every £1 for creditors with validated claims ranging from a few pounds to £500,000.  Further payouts are anticipated later this year.

Often there is little left in the pot to hand out to creditors once assets have been sold to pay first-in-line creditors like the banks and finance houses.  

Smith & Williamson was appointed liquidator in August 2007.

Greg Palfrey, director of restructuring and recovery at the firm's Southampton office, said: "We have been able to pay out 15p in every £1 to creditors who had their claims accepted by us, and we are in the process of being able to pay more dividends later this year, between 5p and 10p in every £1.

"Overall, creditors are in line to get back up to 25p for every £1 they thought lost. Mr Palfrey said money had been retrieved through the sale of assets, such as property, vehicles, garage workshop equipment and sales and administrative equipment across five sites in Hertfordshire.

He added: "In these sorts of liquidation cases creditors would normally have little hope of getting anything back, so this is a real result for them.

 "I am always amazed when we write to creditors and receive no response even when we are saying we wish to pay them money, I would therefore recommend creditors do not discard mail from insolvency firms but carefully read it as they may be being offered a monetary recovery.  Indeed one creditor received a cheque for £75,000!

We paid out dividends to nearly 200 creditors although in total there were 450 potential creditors.

"That meant there was more to share among those who did apply".

Creditors, a number of them local to Charvill's base at Ware in Hertfordshire, range from customers with car service agreements to trade suppliers and franchises.

For further information contact:

Press Office:

Kate Harrison / Layisha Laypang, 020 7131 4228 / 4550 

Disclaimer

By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing. 

Note to editor

Smith & Williamson is an independent professional and financial services group employing over 1,400 people. The group is a leading provider of investment management, financial advisory and accountancy services to private clients, professional practices and mid-to-large corporates. It operates from offices in London, Belfast, Bristol, Glasgow, Guildford, Maidstone, Salisbury, Southampton and Worcester. Nexia Smith & Williamson is the audit practice of Smith & Williamson and is an independent company. 

Smith & Williamson Limited

Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. A member of Nexia International.

Nexia Smith & Williamson Audit Limited

Registered to carry on audit work and regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. A member of Nexia International.