Polestar UKPrint Limited Polestar Stones

Transcription

Polestar UK Print Limited
Polestar Stones-Wheatons Limited
both in administration
Remuneration Report: Initial Information to
Creditors
24
pwc
June 2016
Table ofContents
1.
Abbreviations and definitions
2
2.Background
3
2.1.
Purpose of this initial advice to creditors
3
2.2.
Action required by you
3
2.3.
How fees are caictilated
5
3. Our fee estimate
3.1. Summary
3.2.
6
6
Work we propose to undertake
8
3.3. Our time charging policy and hourly rates
13
3.4. Further approval
13
4. Expenses
4.1.
15
What is an expense2
15
4.2. Our expenses estimate
16
5. Notes and assumptions
5.1. Work we propose to do
20
20
5.2. Expenses
20
5.3. Associates
20
6. Analysis of timecosts for the period
25
April to
19
June
2016
21
6.1. Polestar UK Print Limited timccost summary
21
6.2. Polestar Stones-Wheatons Limited timecost summary
22
1.
Abbreviations and definitions
The following table shows the abbreviations and insolvency terms that maybe tised during this report:
Abbreviation or
..
definition
Meaning
New PUPL
PSWL
the Companies
New PUPL and PSWL
Firm or PwC
PricewaterhouseCoopers LLP
1A86
Insolvency Act 1986
1R86
Insolvency Rules 1986
Preferential creditors
Creditors with claims for:
r. unpaid wages for the whole or any part of the period of four months before
2016 (up to a maximum of £800);
2.
accrued holiday pay for any period before 25 April 2016; and
3. unpaid pension contributions in certain circumstances.
Prescribed part
The amount set aside for unsecured creditors from floating charge funds in accordance
with section 176A IA$6 and the Insolvency Act 1986 (Prescnbed Part) Order 2003
RPS
Redundancy Payments Service (part of the insolvency Service, an executive agency of the
Department for Business, Innovation & Skills)
Secured creditors
Creditors with security in respect of their debt, in accordance with section 248 1A86
SIP
Statement of Insolvency Practice (issued by regulatory authorities, setting out principles
and key compliance standards with which insolvency practitioners are required to
comply)
The Administrators
(or we , our
Zeif Husain and Peter Dickens
Unsecured creditors
Creditors who are neither secured nor preferential
25
April
ZeIf Hussain and Peter Dickens have been appointed as joint administrators of the Companies to manage their
affairs, business and property as their agents and act without personal liability. Both are licensed in the United
Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.
The joint administrators are bound by the Insolvency Code of Ethics which can be found at:
httDs: //www.gov.uk/government/publications/insolvency-yractitioner-code-of-ethics
The joint administrators are Data Controllers of personal data as defined by the Data Protection Act 1998.
PricewaterhouseCoopers LLP will act as Data Processor on their instrtwtions. Personal data will be kept secure
and processed only for matters relating to the administration.
PwC
24 June 2016
2
2.
Background
2.1.
Purpose of this initial advice to creditors
If a company or individual is facing financial difficulty they may enter a formal insolvency process under the
control of an independent external person (an insolvency practitioner). The costs of the proceedings are paid
out of the assets of the company or the individual’s estate and incitide the insolvency practitioner’s
remuneration, which in this case would be our fees for acting as joint administrators.
We must seek approval to the basis of otir remuneration before it is paid and provide the fee approving body
with sufficient information for them to make a decision. Who is the fee approving body is governed by 1R86
and depends on the circumstances of the case, but is usually those creditors who have a direct interest in the
amount paid because it impacts on how much those creditors recover.
Changes to insolvency legislation on 1 October 2015 also now require us to give all luown creditors details of
the work we expect to carry out during the case and the expenses that are likely to be incurred. Also, if our fees
are proposed to include remuneration calculated on a time costs basis, we mtist provide an estimate of those
fees. This report provides all this information and details of where further information can be obtained.
To further understand the detail of the work undertaken and proposed by the administrators and the value
achieved for the administration, this report shotild be read in conjtinction with the administrators proposals
dated 17 June 2016. A copy of the proposals can be found at www.pwc.co.uk/polestar2.
2.2.
Action required by you
The following table gives our current estimates on the likely return for the various classes of creditors.
Tablei
dividend prospects
Company! Class of creditor
—
Forecast return
Timing
17-23p/r
June 2016 —August 2017
New PUPL
Secured creditor(s)
100p/
Before April2017
Unsecured creditors
0— 1.85pI
April 2017 —August 2017
PSWL
Secured creditor(s)
Nil
Not applicable
Not applicable
Not applicable
Unsecured creditors
Nil
Not applicable
As stated in our proposals we believe that there will be no funds to distribute to unsecured creditors of New
PUPL, other than via the prescribed part. We expect preferential claims to arise for accrued unpaid holiday pay
and will be repaid in full in due course.
As also confirmed in our proposals, we believe that there will be no asset realisations in the administration of
PSWL with which to make a distribution to any class of creditor.
Unless a meeting of creditors is called and a creditors’ committee is formed, the secured and preferential
creditors have the responsibility for fixing the basis of our fees and Category 2 disbursements. We will seek
such fee approval separately in due course.
PwC
24 June 2016
3
This Remuneration Report is therefore for your infbrmation purposes only and no action is required in respect
of otir fees or expenses.
Creditors’ rights
You can find information on administrators’ fees and your rights at:
www.creditorinsolvencyguide.co.uk/about-this-website.html
PwC
24 June 2016
4
2.3.
Howfees are calculated
Insolvency law currently allows fees to be calculated in three ways:
•
As a percentage of the value of the property which we deal with (often referred to as a “percentage basis”);
•
By reference to the time properly given by us and our staff attending to the matters arising (“time costs
basis”); or
•
A set amount (a fixed fee).
The basis of our fees can be a combination of the above and different bases can be used for different parts of our
work. The fee approving body decides which basis (or combination of bases) should be used to calculate fees,
once it is satisfied that the fee basis proposed represents the most appropriate mechanism in the circumstances
of the case.
In the case of New PUPL we are proposing that our remuneration is on a time costs basis only, for the following
reasons:
•
It ensures that creditors are only charged for work that is performed; and
•
We are unable to estimate with certainty the total amount of fees necessary to complete all tasks required in
the administration as this will depend on how quickly the remaining plant can be sold and the remaining
book and trading debts collected.
In the next section we include details of our costs estimate. For New PUPL we estimate the costs will be split
£2,856,000 in relation to the fixed and floating charge realisations and £75,000 in relation to the prescribed
part fund in respect of agreeing creditor claims and making a distribution to creditors.
Formal approval will be sought in the near future.
We have incurred timecosts to date of £2,167,909 representing 6,662 hours on New PUPL and £5,204
representing 26 hours work on PSWL. A summary of the work and achievements to date is set out below, with
greater detail provided later in this report:
•
A sale of certain business and assets has now been completed to various parties. A balance of £7.6m was
initially received and a further £2.8m has been received since the administrators’ proposals were issued. A
further £3.6m is expected in relation to an intercompany loan.
•
The administrators oversaw a period of 7 weeks trading to allow the completions of various going concern
sales;
•
The ongoing trading has enabled continuity of supply to customers, enhancing book debt collections by
mitigating customer claims for loss of profit. Debtor collections total in excess of £lo.5rn to date.
•
A distribution to preferential creditors has been made via payment of pre-appointment arrears of wages.
preferential claims have also been mitigated through the transfer of employees under TUPE to the various
purchasers;
•
The residual assets based at Sheffield will be realised in the coming weeks following closure of the
operations;
•
A distribution is expected to be made to the unsecured creditors (numbering some 300 creditors) from the
prescribed part (currently estimated at the maximum of £6ook (maximum); and
PwC
24 June 2016
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3. Ourfee estimate
3.1.
Summary
This section provides the following information:
•
Details of the work we propose to undertake;
•
The hourly rates we propose to charge for each part of that work;
•
The time we anticipate each part of the work will take; and
•
Whether
we
think it will be necessary to seek approval to exceed the amount of the estimate, and if so,
why.
The total amount of our fees estimate is £2,983,734.47 across both PUPL and PSWL. The following tables
summarise our anticipated time costs and then provide more detail on each area of work. Time costs are shown
at the hourly rates set out later.
In the period since our appointment to 19 June 2016 we have incurred time costs of £2,167,909.15 representing
74% of the fees estimate.
Table 2.1
—
Time costs
Category of work
;.Administration and
—
New PUPL
Hours
•
Fees estimate
(ak)
Average
hourly rate
(C/hour)
2016
Time costs
incurred to
19 June 2016
(fk)
Average
hourly rate
for time costs
incurred to
19 June 2016
(L/hour)
Hours
rncurred
to 19 June
471.95
155,691.59
329.89
380.95
125,670.25
329.89
125.00
37,500.00
300.00
8.98
2,598.80
289.40
3. Asset Realisation
2,692.45
1,010,772.65
375,41
1,467.45
550,898.50
375.41
4. Trading
4,533.56
1,369,407.13
302.06
4,493.56
1,357,326.60
302.06
5. Creditors
505.74
151,722.00
300.00
170.74
41,045.40
240.40
6. Pensions
100.00
46,074.00
460.74
54.25
24,995.00
460.74
7. Tax and VAT
210.00
159,896.10
761.41
85.86
65,374.60
761.41
8,638.70
2,931,063.47
339.29
6,661.79
2,167,909.15
325.42
planning
2. Investigations
Total hours and
.
fees estimate
PwC
24 June 2016
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In the period since otir appointment to 19 June 2016 we have incurred time costs of £5,204.30, representing
10% of the fees estimate.
Table 2.2
—
Time costs
—
P$WL
.
Hours
Category ofwork
Fees
estimate
(ak)
Average
hourly rate
(G/hour)
Hours
Time costs
incurred
incurred to
to 19 June
19 June 2016
(Ek)
2016
Average
hourly rate
for time costs
incurred to
19 June 2016
(L7hour)
r.Adrninistration and
.
planning
2.AcCOuntrng and
treasury
Total hours and
fees estimate
.
155.42
46,626.00
300.00
25.42
5,153.30
202.73
20.15
6,045.00
300.00
0.15
51.00
340.00
175.57
52,671.00
300.00
25.57
5,204.30
203.53
Our total remuneration cannot exceed the total amount of this fees estimate without prior consent from the fee
approving body.
The
above table provides an estimate of the anticipated time likely to be required on the various areas of work
will provide an update by reference to actual costs incurred. To
likely to report costs on the same basis and using our normal rates.
and in future reports we
comparison, we are
A more
detailed analysis of the time incurred to date is set out in Section
PwC
facilitate such a
6.
24 June 2016
7
3.2.
Work we propose to undertake
The following table provides details of the work on New PUPL we propose to do (indicated by -), have already
It provides a brief summary for each categoly rather than an exhaustive
done (V) or which is in progress
list of all possible tasks.
(s).
Table 2.3
—
Work we propose to do: Reatisation offixed and floating charge assets and general and statutory
tasks £2,856,063
-
Category ofwork
General description
Work included
Assets
Sale of businesses
•
•
•
Property
•
•
Debtors
•
•
•
Stock
•
•
•
•
Other chattel assets
•
•
Retention of title claims
•
•
•
•
•
•
Insurance
•
•
•
•
Third party assets
•
•
Secured creditors
•
•
PwC
Instructing agents to prepare an information memorandum and supporting
documentation V
Liaising with purchasers and solicitors V
Holding internal meetings to discuss/review offers received V
Liaising with agents and landlords C
Negotiating with third parties re licence to occupy V
Reviewing and assessing debtors ledgers V
Credit control and debt collection C
Liaising with prospective purchaser to decide how to deal with historic
debtors V
Conducting stock takes V
Reviewing stock values V
Liaising with purchasers V
Making payments C
liaising with valuers, auctioneers and interested parties C
Reviewing asset listings V
Arranging for the completion of retention of title claim forms C
Maintaining a record of retention of title claims C
Arranging for claimants to go on site to identify goods C
Adjudicating retention of title claims C
Corresponding with claimants regarding outcome of adjudication C
Negotiating potential settlements and making payments to satis’ valid
claims C
Identifying potential issues requiring attention of insurance specialists V
Reviewing insurance policies V
Corresponding with insurer regarding initial and ongoing insurance
requirements V
Agreement and settlement of insurance premiums and recovery from
purchaser C
Reviewing leasing documents V
Liaising with owners/lessors C
Notifying secured creditors of appointment V
Preparing reports to secured creditor C
24 June 2016
8
Category ofwork
General description
Work included
•
•
•
Creditors
Preferential claims
•
•
Obtaining agreement to the disposal of assets subject to the secured
creditor’s fixed charges C
Responding to secured creditor’s queries C
Making distributions in accordance with security entitlements C
Mitigating certain preferential claims through the sale of the business as a
going concern, with the transfer of employees. V
Agreement of preferential claims of employees made redundant during the
administration period together with the claim of the RPO.
-
Creditor enquiries
•
•
•
•
Employees and
pensions
Pensions
•
•
•
•
Payroll
Trading
Investigations
Conducting
investigations
Reviewing employee files and company’s books and records V
Reviewing awards and payroll structure V
Calculating and paying periodic payroll C
Deducting and paying over PAYR/NIC to HMRC and other deductions to
relevant agencies and third parties C
•
Drafting, issuing and delivering initial communications and announcements
•
•
Preparing letters to employees advising of their entitlements and options
available V
Receiving and following up employee enquiries via telephone, post and email
•
Collecting company s books and records where related to investigatory work
•
•
Reviewing books and records C
Reviewing specific transactions and liaising with directors regarding certain
transactions C
Preparing investigation file and lodging findings with the Department for
Business, Innovation and Skills C
V
•
Trading management
•
•
•
Reviewing insurance policies V
Issuing statutory notices V
Dealing with general pension scheme issues and the Pension Regulator
regarding ongoing investigations C
Calculating contributions and requesting payments to the relevant scheme or
policy C
•
•
•
•
Communications with
employees
Setting up a dedicated website for delivery of initial and ongoing
communications and reports V
Receiving and following up creditor enquiries via telephone, email and post
C
Reviewing and preparing correspondence to creditors and their
representatives C
Receipting and filing proofs of debt when not related to a dividend C
Liaising with suppliers C
Liaising with management, staff and the operator C
Attending on site C
24 Jone 2016
PwC
9
Category ofwork
Investigations
Statutory and
compliance
General description
Work included
•
•
•
•
•
•
•
Authnrising purchase orders and other commitments C
Maintaining purchase order registry C
Preparing and authorising receipt and payment vouchers C
Reviewing company’s budgets and financial statements C
Preparing budgets and financial reports C
Holding meetings to discuss trading position C
Agreement of trading loss/profit with purchaser C
Processing receipts and
payments
•
Entering receipts and payments into accounting system. C
Remuneration report
•
Preparing and circulating to creditors a report giving details of the work we
expect to carry out during the case, and the expenses that are likely to be
incurred V
Initial letters and
notifications
•
Preparing and issuing all necessary initial letters and notices regarding the
administration and our appointment V
Conducting case reviews after the first month, then every six months C
Case reviews
Statutory and
compliance
Tax &VAT
Proposals and initial
meeting of creditors
•
•
Progress reports and
extensions
•
•
Other meetings /
resolutions
•
•
Books and records
PwC
•
Drafting and reviewing a statement of proposals to creditors including
preparing receipts and payments accounts and statutory information V
Circulating notice of the proposals to creditors, members and the Registrar
of Companies V
Preparing and issuing periodic progress reports to creditors and the
Registrar ->
Making applications to creditors or court for the extension of the
administration and filing relevant notices if necessary -)
Preparing documents and information for the purpose of obtaining approval
to fees, Category 2 disbursements and other matters in the administration -,
Convening meetings for resolutions to be considered / issuing resolutions to
be considered by correspondence 3
•
•
Collecting company books and records where not related to investigatory
work C
Dealing with records in storage 3
Scndingjob files to storage 3
Other statutory and
compliance
•
•
Filing of documents C
Updating checklists and diary management system C
VAT
•
•
•
•
Gathering information for the initial VAT review C
Carrying out VAT review and subsequent enquiries C
Preparing VAT returns 3
Liaising with HMRC 3
24 June 2016
10
r
Category ofwork
General desemplion
Work included
Tax
•
Gathering information for the initial tax review D
Canying out tax review and subsequent enquiries
Preparing tax computations
Liaising with HMRC
•
•
•
Accounting and treasury
-
-
Opening and closing hank account[s] and arranging facilities V
Dealing with receipts, payments and journals not relating to trading
Carrying out bank reconciliations and managing investment of funds D
Corresponding with bank regarding specific transfers D
•
•
•
•
Tax & VAT
Administration
Strater and planning
Completing tasks relating to job acceptance /
Preparing fee budgets & monitoring cost D
Holding team meetings not relating to trading and discussions regarding
status of administration C
•
•
•
Closure procedures
V
•
Withdrawing undertakings not relating to trading and obtaining clearances
from third parties
Completing checklists and diary management system
Closing down internal systems
-
•
•
-
-
The work undertaken in relation to the various sales of business and assets as going concerns is of direct
financial benefit for the creditors of Nev PUPL, as this has resulted in a significantly enhanced realisation in the
administration and has mitigated the claims of employees and others that would have arisen had New PUPL
ceased trading. It was necessaiy to continue to trade New PUPL in administration in order to enhance book
debt realisations and preserve the business as a going concern.
Included in the above table are other tasks that we must perform that may not directly benefit creditors
financially. These typically relate to fulfilling obligations imposed by statute or regulatory bodies.
Tabte 2.4
Work we propose to do: New PUPL Prescribed part distribution to unsecured creditors £75,000
-
—
Category ofwork
General description
Work included
Prescribed part
distribution
Unsecured creditors
•
Preparing correspondence to some 300 potential creditors inviting
lodgement of proof of debt
Receiving proofs of debt and maintaining register C
Adjudicating claims, including requesting further information from
-
•
•
•
•
•
claimants
Preparing correspondence to claimant advising outcome of adjudication and
advising of intention to declare dividend
Advertising intention to declare dividend
Calculating dividend rate and preparing dividend file
Preparing correspondence to creditors announcing declaration of dividend
•
•
Preparing and paying distribution
Consulting with tax specialists as needed in relation to HMRC claims -l
-
•
-
PwC
-
-
-
24 June 2016
11
Based on the current estimates of floating charge realisations and costs, we anticipate that the prescribed part
fund will be £600k (maximum). The work in seeking, receiving and adjudicating on unsecured creditor claims
is necessary to allow a dividend to be paid to the unsecured creditors from the prescribed part fund. The cost of
this falls to be paid out of the prescribed part fund. There are a large number of potential creditors relative to
the size of the funds available.
24 June 2016
PwC
12
3.3. Our time charging policy and hourly rates
The time we charge to the administration is by reference to the time properly given by our staff and us in
attending to matters arising.
It is our policy to delegate tasks to appropriate members of staff considering their level of experience and any
requisite specialist knowledge, supervised accordingly, so as to maximise the cost effectiveness of the work
performed. Matters of particttlar complexity or significance requiring more exceptional responsibility are dealt
with by senior staff or the administrators personally.
Set out below are the relevant maximum charge-out rates per hour worked for the grades of staff actually, or
likely to be, involved on this assignment. All staff who work on this assignment (including cashiers, support
and secretarial staff) charge time directly to the assignment and are included within any analysis of time
charged. Time is charged by reference to actual work carried out on the assignment in six minute units. The
minimum time charged is three minutes (i.e. 0.5 units). There has been/will be no allocation of any general
costs or overhead costs. These rates will apply to each part of our work.
A national team has been used on this mutli-site administration involving both London and regional office staff.
Specialist departments with our firm, such as Tax, VAT, Property and Pensions are also used where their expert
advice and services are required. Such specialist rates do vary but the figures below provide an indication of the
maximum rate per hour.
Table 4
—
Charge-out rates
With effect to 30 June 2076
Maximum rate
per hour
(regional)
G rade
Maximum rate
per hour
(London)
Specialist
maximum rate
per hour
($)
()
()
Partner
590
825
1,190
Director
490
725
1.095
Senior Manager
425
550
920
Manager
340
470
665
Senior Associate
255
390
490
Associate
165
245
240
87
123
Support staff
-
140
In common with all professional firms, hourly rates increase from time to time over the period of the
administration (for example to cover annual inflationary cost increases). Any material amendments to these
rates will be advised to the fee approving body when seeking fee approval, and to creditors in our next statutory
report.
3.4. further approval
Creditors should be assured that the provision of a fees estimate will not affect the proper conduct of the
administration, lithe necessaiy work exceeds (or is likely to exceed) that included in the fees estimate, we can
seek consent, usually from the fee approving body, for our fees to exceed the fees estimate.
Our fees estimate is based on a number of assumptions, which are explained in Section 5. In broad terms and
in our experience, the key issues likely to affect the level of costs are the:
•
•
•
•
•
•
availability and quality of the books and records;
level of co-operation received, for example: from employees, and continuity of key staff;
duration of ongoing trading which requires more supervision and control;
level of interest in the assets and speed of any sale;
support from external stakeholders, including landlords and suppliers; and
any changes to our strategy that might be necessary as a result of the above.
PwC
24 June 2016
13
In our periodic progress reports, we will keep creditors updated on how our fees are comparing to the fees
estimate. If fees are likely to exceed this fees estimate we will need further approval to draw those fees.
PwC
24 June 2016
14
4. Expenses
What is an expense?
4.1.
Expenses are defined in SIP9 as amounts properly payable by the office holder from the estate which are not
office holders’ remuneration or a distribtition to creditors.
Disbursements are a type of expense which is met by and reimbursed to an office holder in connection with an
insolvency appointment. They fall into two categories: Category 1 and Category 2:
Disbursement
SIP9 definition
Category
Payments to independent third parties where there is specific expenditure directly
referable to the appointment in question.
1
Costs that are directly referable to the appointment in question but not to a payment to an
independent third party. They may include shared or allocated costs that may be incurred
by the office holder or their firm, and that can be allocated to the appointment on a
proper and reasonable basis.
Categon- 2
Our firm’s disbursemeits policy allows for all properly incurred expenses to be recharged to the case. We don’t
need approval from creditors to draw Category 1 disbursements as these have all been provided by third parties,
but we do need approval to draw Category 2 disbursements as these are for services provided by otir firm. The
body of creditors who approve our fees also have responsibility for agreeing the policies for the payment of
Category 2 disbursements, which in this case are as follows:
Photocopying At 5 pence per sheet copied, only charged for circulars to creditors and other hulk copying.
Mileage
At
a maximum of 71
pence per mile (tip to
2,000Cc)
or 93 pence per mile (over 2,000cc).
PUPL disbursements information
We incurred the following disbursements (excluding VAT) during the period from otir appointment to
19 June
2016:
Category
1
Costs to date
Policy
All disbursements not falling under Category 2
Travel
Accommodation and subsistence
Sundry expenses
are recharged at cost
27,787.44
4,463.95
46,174.80
Total
only charged for
2
Photocopying is charged at p per sheet copied
circulars to creditors and bulk copying
2
Mileage is charged at a maximum of 71 per mile (up to
93 per mile (over 2,000 cc)
—
2,000 cc) or
Total to 19 June 2016
-
13,923.41
0.00
6,960.35
53,135.15
24 June 2016
PwC
15
PSWL disbursements information
We incurred the following disbursements (excluding VAT) during the period from our appointment to
19
June
2016:
Category
1
Policy
Costs to date
All disbursements not falling under Category’ 2 are recharged at cost
Sund;y expenses
450.00
Total
450.00
2
Photocopying is charged at p per sheet copied
circulars to creditors and bulk copying
2
Mileage is charged at a maximum of 71 per mile (up to
93 per mile (over 2,000 cc)
Total to
4.2.
19
June
—
only charged for
2,000
o.oo
cc) or
0.00
2016
450.00
Our expenses estimate
The following table shows expenses incurred by the Companies to date and an estimate of further expenses we
consider will be (or are likely to be) incurred.
The total expenses estimate for New PUPL and PSWL is
£3,519,500
and
£8,200
respectively.
The estimate excludes any potential tax liabilities that may he payable as an expense of the administrations in
due course because amounts due will depend on the position at the end of the tax accounting period.
Our expenses estimate includes pre-administration costs that would be payable as an expense of the
administration of New PUPL. No pre-administration costs have been apportioned to PSWL. Our pre
appointment costs were explained in more detail in our previously circulated proposals.
The pre-appointment costs of New PUPL which the administrators intend to seek approval for include PwC’s
unpaid time costs of £49,018 (plus VAT). DLA Piper LLP have outstanding legal fees of £io,ooo (plus VAT and
disbursements) which were incurred prior to New PUPL being placed into administration but with a view to it
being so. A breakdown of the administrators’ pre-appointment costs by grade has been summarised below:
Category of work
Staff Grade
Hours
Average Hourly
Total Fees
()
Strategy’&Planning;
Partner
10.0
$25
8,250.00
Strategy&Planning;
Director
15.5
725
11,237.50
Strategy&Planning;
H
Strategy & Planning,
SeniorManager
30.7
425
13,047.50
Manager
33 3
359 5
11,972 00
Strategy&-Planning;
SeniorAssociate
15.7
238.9
3,751.00
Strategy&Planning;
Associate
3.8
200
——--
109.0
760.00
——1-’.49,O18.OO
24 June 2016
PwC
16
Please note that the administrators’ pre-appointment costs detailed in the table above differ from those stated
in the administrators’ proposals. This was due to time being transferred from an associated code, which was not
accounted for previously.
The payment of unpaid pre-administration time costs as an expense of the administrations is subject to
approval in the same manner as the administrators’ remuneration and certain disbursements and are not part
of the administrator’s’ proposals subject to approval under Paragraph 53 Sch.Bi 1A86. Such a request will be
made to the relevant classes of creditors in due course in accordance with Rule 2.106 1R86.
Table 3— Expenses estimate
—
New PUPL
Nature of expenses
Purpose of expense
Incurred to date
(Lk)
Estimate of future
expenses (Ck)
Agents’ fees and disbursements [GMS]
Trading agents
4.2
4.5
Bank charges
CHAPS charges, Interest on
overdraft + Initial set up fee
5
0.5
Legal fees and expenses [DLA LLPJ
Legal advice on sale and
administration matters
350.0
50.0
Office holders’ disbursements
PwC disbursements i.e. Postage
53.1
10.0
Statutory advertising
Notice of appointment and Notice
of Intention to pay dividend
0.1
0.1
Storage costs
Company Books and Records
archiving and storage
Other expense
Trading losses during
administration period (see table
3.1 below for breakdown)
.
.
.
.
.
.
Total expenses
-
25.0
3,016.6*
0.0
3,429.4
90.1
This is all estimate and the trading loss will depend on the final level of trading receipts as well as the final expenses paid and settled and
could be less than this estimate
*
PwC
24 June 2016
17
Table 3.1
—
Estimated trading losses breakdown
Total (k)
Trading receipts
70,692.6
Trading payments
Paper
598.5
Ink
1,837.5
Direct labour
1,169.3
Direct expenses
1,238.6
Licence to occupy
1546.2
Heat, light and power
1,533.3
Motor and travel expenses
77.7
Telephone
61.9
Recycling
319.1
Professional fees
25.5
Lease equipment
393.1
Storage costs
Repairs and maintenance
27.7
229.1
Sundry expenses
26.0
Duress Payments
35.4
Office Costs, Postage & Stationary
7.9
Wages & Salaries
3,023.0
Employee Deductions
1,499.6
Employee expenses
Bank charges
Total expenses
Net trading
PwC
51.0
8.8
(73,709.2)
(3,076.6)
24 June 2016
18
Table 3
—
Expenses estimate
—
PSWL
incurred to date
(k)
Purpose of expense
Nature of expenses
Estimate of future
expenses (f.k)
Sank charges
CHAPS charges, Interest on
overdraft + Initial set up fee
Legal fees and expenses fDLA LLPI
Provision for legal advice on
administration matters
Office holders’ disbursements
PwC disbursements i.e. Postage
0.5
1.0
Statutory advertising
Notice of appointment and Notice
of Intention to pay dividend
0.1
0.1
Storage costs
Company Books and Records
archiving and storage
5.0
-
.
.
0.5
-
.
.
1.0
-
7.6
0.6
Total expenses
We have made tise of’ the following professional advisors during the administrations.
Table 4
—
Professionals
Service provided
Name of firm
Reason selected
Basis of fees
Legal advice, including:
Drafting sale and purchase
agreement
•
Dealing with all legal matters around
sale of business
•
Drafting management agreement
General advice on the administration
•
appointment
General adhoc trading advice
•
DLA Piper LLP
Industry knowledge / insolvency
expertise
Time costs and
disbursements
GMS Limited
Industry knowledge / insolvency
expertise
Time costs and
disbursements
Industry knowledge! insolvency
expertise
Fixed fee
•
Trading agents. including:
•
Utility supplies management
•
Telcoms/internet supply
management
•
Site security services
•
Recovery of books and records
Agent services, including:
Realisation of plant and machinery
•
.
Hilco
.
We require all third party professionals to submit time costs analyses and narrative or a schedule of realisations
achieved in support of invoices rendered. In review the appropriateness of profession costs, we consider:
•
•
•
•
comparison with upfront budgets;
review of time costs analysis;
review of disbursements claimed; and
ongoing dialogue with regards to the work being performed.
PwC
24 June 2016
19
5. Notes and assumptions
5.1.
Work we propose to do
The following assumptions have been made with regards the work we anticipate will (or will not) be required in
this case, which has been taken into account when deciding on the most appropriate basis for our
remuneration.
•
We have assumed the administration of PSWL will be concluded within the statutory period of one year.
•
We have assumed that the administration of New PUPL will he concluded with 18 24 months, following
the repayment of the intercompany unsecured loan from Polestar Applied Solutions Limited.
•
We do not expect that a committee of creditors will be established.
•
We have assumed that the claims of tinsecured creditors (save for the exception of HMRC) will not be
complex and will be agreed with minimal need for correspondence with creditors.
•
We have assumed that all matters arising in connection with the assets of the residual fixed assets will be
concluded without material difficulty.
•
We are not aware of any other assets to be realised.
-
5.2.
Expenses
All production sites of New PUPL have now been sold or been subject to managed wind down and therefore the
administration trading period is finished. In some cases this has meant that we have been able to use the actual
figures incurred and billed and these shotild not change. However, there are a number of areas of expense,
particularly trading expenses such as utilities or certain suppliers, where we do not have final invoices and the
costs are therefore an estimate: the final expense costs will therefore differ from the estimate provided here.
We have assumed that we will not require any further legal or professional help in the administration. This
could change if there are any disputes with creditors, or if we become aware of any claims the Companies may
have.
We have not included any estimate of the tax costs which could fall as an expense of the administration as this
will depend on the final position at the end of the tax periods.
We have assumed that the creditors will not number any more than our current creditors list. We have not yet
received a statement of affairs from the directors, so this may show a different number or mix or creditors from
those we are currently aware. Stich a change could impact on the costs of agreeing creditor claims and paying a
distribution out of the prescribed part.
We have assumed that all input VAT will be recoverable.
5.3. Associates
We have no business or personal relationships with parties responsible fbr approving remuneration or who
provide services to us in respect of the appointment where the relationship could give rise to a conflict of
interest.
PwC
24 June 2016
20
Insurance sod litigation
Total asset realisafions
Other assets
Book debts
supervision
Pinal SIP9
PwC
Polestar OK Polestar Limited
lTotalforthepenedtolQJilIIe2ol6
Retentionoftitle
Total creditors
6 Pensions
7 Tax/VAT
Communicafionwithereditors
5 Creditors
Totaifrading
On-goingemployeeissues
Accounthog and easurv
Trading
4 Trading
i
Administration and Planning
Case acceptance and apointment verification
Budgefingandcostanalvsis
Case planmng, update and slrate0 meetings
lnitiallettersandnotifications
Proposalsandstamton-reporting
Other statutory ancompliance
Formal reportingtobank
Total administration and planning
2 Investigations
3 Asset Realisation
Sale of business
Propertymanagementandsale
Chattel assets
Aspect of assignment
Analysis of time costs for the period from
25
-
235.00
-
1471.50
12.50
-
316.00
i6.oo
-
-
-
316.00
1.1)0
.
315.00
225.50
32.00
-
6.50
-
2.00
4.5))
i6.oo
-
tt.o
50.00
-
-
-
-
4.36
25.80
3,035.10
37.40
2,694.05
Page 1 oIl
5,278.94
11.30
2.40
37.10
157.74
1.36.08
21.66
1,901.66
495.Ot)
424.59
982.07
7.90
1.70
0.70
1,191.40
255.45
145.60
79(1.35
776.90
.8o
-
0.70
-
0.70
336.80
1.1)))
2911.60
45.20
32.50
32.50
3.32
423.85
39.50
-
-
-
-
197.85
25.00
-
86.73
5.85
1.40
6.50
731.20
171.0))
18.30
541.90
537.75
‘.50
6.25
9.65
43.55
43.50
12.00
24.60
20.80
288.00
19.00
lOOt)
-
63.60
466.25
177.00
50.00
-
4.00
448
0.50
-
-
.
-
13.55
-
146.15
41.01)
94.20
0.25
4.75
0.75
48.55
56.47
33.80
i8.oo
1.35
15.15
30.00
15.55
19.15
4.75
-
-
3.30
Associate
9.50
-
-
11.55
35.85
-
8.48
Senior
Associate
19
42.50
5.00
1.00
7.15
4.10
-
13.41)
6.to
5.00
:31.50
-
tl.30
3.80
-
2.0(1
4.45
Manager
-
Senior
Manager
June 2016
i)irector
19
0.51)
Partner
April 2016 to
6.;. Polestar UK Print Limited timecost summary
6. Analysis of timecostsfor the period 25Apr11 to
pwc
‘35°I I
-
-
0.50
-
-
0.50
0.50
-
-
6.00
-
6.00
-
-
-
-
-
Secretarial
6,661.791
8.86
54.25
170.74
139.18
31.56
4,493.56
927.95
879.59
2,686.02
116.97
1,46745
38.75
62.
254.&
492
1,045.Q
380.95
8.98
61.05
68.75
97.92
27.55
91.85
17.60
16.23
Total hours
June 2016
I
-
I
21
24-,tUfl-16
325.421
460.74
761.4t
240.40
231.03
281.72
302.06
276.32
219.87
337.86
375.41
343.98
310.74
372.18
303.99
391.68
384.32
289.40
329.89
414.13
248.63
276.32
266.90
405.91
348.41
Printed at 16:24 on 24/06/2016
2,167,909.151
65,374.60
24,995.00
41,045.40
32,154.30
8,891.10
t,357,326.60
256,415.50
193,399.15
907,511.95
550,898.50
40,235.45
12,041.25
23,075.00
47,082.05
19,139.00
409,325.75
2,598.80
125,670.25
26471.25
15,179.00
27,057.45
7,353.00
37,283.25
6,132.00
258.43
£
£
4,194.30
Average hourly
rate
Time cost
Li
Pest
Polestar UK Polestar limited
ITotalforthepenodtoi9June2oi6
Administration and Planning
Proposalsandstamtorvreporting
Otherstatutoryand compliance
Totaladministrafionandplanning
Accountinu and treasury
Aspect of assignment
L6o
0.00
0.00
-
-
-
33.i4
Polestar Stanes-Wheatons Limited
6.i
0.15
6.o
-
3.25
16.57
3.00
0.80
-
-
3.25
4.0C)
-
12.57
-
1.35
-
Associate
1.65
Senior
Associate
t).50
Manager
0.30
Senior
Manager
2016
-
Director
June
-
Partner
Analysis of time costs for the period from 25 April 2016 to 19
6.2. Polestar Stones-Wheatons Limited timecost summary
pwc
3.601
-
1.80
1.80
-
Secretarial
I
25.571
0.15
25.42
5.85
t9.57
Total hours
I
I
both in administradon
24-Jun-16
203.53j
‘140.00
5 1.00
5,204.301
202.73
191.20
241.28
Average hourly
rate
5,153.30
3,741.80
1,411.50
Time cost
£

Polestar UKPrint Limited Polestar Stones

Transcription

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