Insolvency and Administration

Aero Inventory – Deloittes Fined

There was a brief mention of the latest news on Aero Inventory in the recently issued ShareSoc Informer Newsletter, but here are a few more details. False accounts are a common problem in AIM companies (Aero Inventory and Globo are just two examples apart from the recent case of Redcentric). Let us hope the auditors of Redcentric (PWC) take note of the recent record fine imposed on Deloittes of £4 million in relation to their audit of Aero Inventory, plus £2.3 million ...

AIM Campaign Comments

RBS and Pre-Packs

The FT carried a story on Saturday (11/6/2016) which was a blast from the past. It reported that Neil Mitchell, a former CEO of Torex Retail, had filed a claim in the high court against Royal Bank of Scotland (RBS), Cerberus and KPMG in relation to the sale of the company at the time it went into Administration. This case goes back to 2007 when Torex Retail got into financial difficulties after some fraudulent accounting came to light (which resulted in subsequent ...

Globo Administrators Report – There’s No Money Left

The Administrators of Globo Plc have published their initial report into the affairs of the company. It makes for depressing reading. In essence one might sum it up in the phrase "There's no money left" which was the infamous wording of a note left by one UK Treasury Minister to his successor. In this case, even the secured creditors (Barclays Bank in the lead), are unlikely to get paid in full and all unsecured creditors and shareholders will get nil. The assets ...

Globo In Administration

There has been a further announcement by the company today which stated that administrators have been appointed "by order of the court". The administrators are FTI Consulting LLP and they say "Our focus is to undertake an immediate assessment of the Group in order to evaluate any opportunities to realise value from the various businesses.  We will also be looking to gain control of the books and records in order to be in a position to undertake a full investigation.  These steps ...

ScS Group listing – a pre-pack phoenix relists

Upholstery and flooring retailer ScS Group Plc (SCS) joined the main market of the LSE on the 28th January.  At the placing price of 175p the market cap was £70m.  Now you may recall that this company used to be listed a few years ago, but went into administration in July 2008. It's useful to look back at what happened then and at some aspects of the current business in case you are considering an investment in the company. In 2008 the ...

Corporate Governance at Quindell, and news on Aero Inventory

I won't even attempt to discuss the past history of events at Quindell in this article. But recent ones suggest that it is likely to remain a controversial company. After the departure of founder and former Executive Chairman Rob Terry, Richard Rose has been appointed as Chairman and Jim Sutcliffe has been appointed as Deputy Chairman and Strategy Director. Shareholders no doubt welcomed these experienced hands to take charge of this company after past events. But there are a couple of problems ...

Changes to Company Regulations

Today on Bank Holiday Easter Monday, the Government announced some changes to company regulations. Does this show how they work all the days of the year to improve the UK business environment, or they thought it a good time to announce controversial proposals? You can judge for yourselves the answer to that question after reading what follows. But as most of the proposals were well flagged in advance by past public consultations, they may only be controversial to those companies who ...

Hibu, a most peculiar EGM, and RBS

In a previous blog post on the 28th Nov I discussed Royal Bank of Scotland (RBS) and the "unacceptable face of banking". It mentioned the case of HIBU, where RBS was one of the lenders, which had just been put into administration thereby apparently thwarting the calling of a General Meeting (EGM) by shareholders and the appointment of new directors. This was similar to the case of Torex retail some years before.In fact the HIBU EGM did actually take place but ...

RBS, Hibu and the unacceptable face of banking

There have been extensive media comments lately on the activities of the Royal Bank of Scotland in lending to smaller businesses, and what they did when those businesses got into financial difficulties. The articles printed focussed on two reports on the activities of RBS - a report commissioned by the bank by Sir Andrew Large, and one by Lawrence Tomlinson* who acts as a consultant to the BIS Department. Both reports, but particularly the latter one, were quite damning about the ...