The collapsed drug and alcohol charity the Lifeline Project owes approximately £7m to unsecured creditors, but has £4.4m available with which to pay, the latest liquidator’s report shows.
The progress report, published on Companies House this week, says that the charity currently has £4.4m available, which could mean unsecured creditors receive about 60.8p on the pound.
Because of the transfer of former Lifeline Project staff to CGL and other providers, most staff retained employment and have therefore not submitted claims to the liquidators.
The report says almost £39,000 is owed to staff made redundant before the collapse of the charity. These former employees are being treated as preferential creditors by liquidators, the report says.
In total, 367 creditors have submitted claims. The report says this number is expected to increase further, with 5,000 potential creditors having been written to.
All properties used by the charity have now been dealt with, the liquidator’s report says.
A confidential report on the liquidator’s investigation into the charity was also submitted to the Secretary of State for Business, Energy and Industrial Strategy.
The Insolvency Service said in June that Ian Wardle, the former chief executive of Lifeline, had been banned from being a company director for seven years after entering the charity into three payment-by-results contracts with "unachievable" targets.