Creditors

An administrator is a licenced insolvency practitioner, an officer of the Court and is qualified to manage the affairs of a business when it is insolvent. It is their role to take control of a company’s affairs when it is in financial difficulty and try to find a longer-term solution for it.

The administrators act as agents of the Companies and without personal liability.

HH No.1 New Holdings Limited ('HH1NH'), HH No.1 Holdings Limited ('HH1H') and HH No.1 Limited ('HH1')

The administrators are David Baxendale, Peter Dickens and Iain Boot of PricewaterhouseCoopers LLP.

HH No. 5 Limited (‘HH5’)    

The administrators are David Baxendale, Edward Williams and Alison Grant of PricewaterhouseCoopers LLP.

Creditors are classified as to the type of claim they have, these types will determine the quantum of distribution they will receive as the funds for each type is ring fenced.

The three main types of creditor are:

• Secured;
• Preferential; and 
• Unsecured

Secured creditors have security registered at Companies House. When they have a fixed/standard charge over an asset, the secured creditor will be paid out of the realisations from that specific asset, after the costs of realisation have been deducted. When they have a floating charge over an asset, the secured creditor will be paid out of the realisations from those assets, after the costs of realisation and other expenses of the insolvency procedure, the preferential creditors (see below) have been paid in full and the prescribed part (see below) has been set aside.

Preferential creditors primarily consist of employees for arrears of wages, accrued holiday pay, unpaid contributions to occupational pension schemes and state scheme premiums, all within certain limits. As of December 2020 this will also include certain aspects of HMRC’s claim, these claims will rank as secondary preferential claims (paid after the preferential element of employees claims) and consist of the VAT, PAYE and NIC deductions. Preferential creditors rank ahead of all other creditors when realisations are achieved from assets where there is no fixed charge registered.

Unsecured creditors are all other unsecured and non-preferential creditors (with the exception of shareholders/members). These are usually the normal “trade” creditors. They rank below preferential and secured creditors, with the exception of when the prescribed part is applicable (see below).

Shareholders / members will be the last class of creditor to receive a distribution and they will only receive a distribution after everyone else has been paid in full plus statutory interest

When a secured creditor has a floating charge registered after 15 September 2003, a proportion of the funds available to them is set aside for distribution to unsecured creditors. This is known as the prescribed part.

The prescribed part applies in this case as there is a floating charge created after 15 September 2003. The amount of the prescribed part is:

50% of net property up to £10,000

20% of net property above £10,000

Subject to a maximum of £800,000

Insolvency legislation sets out how the prescribed part is calculated and if it is applicable further details will be provided in the officeholders’ reports to creditors.

The Joint Administrators will write to all known creditors of the Companies (per the creditor list obtained from the Companies’ books and records) to formally notify them of the administration appointment. This will be accompanied by a general website notice informing creditors that most future documents for creditors will be posted to a website rather than being delivered by post.

The Joint Administrators will produce a report to all known creditors and members within eight weeks of the appointment. This report is known as the Joint Administrators’ proposals and will outline steps taken by the Joint Administrators to date and the strategy going forwards. This report will be delivered via upload to the website following the issue of the website notice with the initial creditors letter.

The Joint Administrators are also required to provide a written update on the administrations to all known creditors every 6 months. This report will be published on the website within one month of every 6-month anniversary or earlier if an Administrator vacates office or an extension to the administration is granted.

Our preferred method for creditors to submit claims and supporting documents is via the Turnkey (IPS) online portal, as this is the most efficient and cost effective way for us to deal with your claim and also allows you to better track its status, so we recommend the use of the online portal for claim submission.

In order to utilise this system, any creditors who have not received a letter with your unique login details within three weeks of the appointment, please contact us on uk_hhpod1queries@pwc.com or uk_hhpod5queries@pwc.com

In preparation for submitting your claim please ensure that you have all relevant details such as your order confirmation or receipt, invoices or other documentation demonstrating the amount owed to you.