Almost £2m of unsecured claims have been made by creditors after the collapse of the charity Beatbullying, according to a liquidator’s progress report filed with Companies House last week.
Among the 91 creditors that have submitted claims, ITV Text Santa says it is owed £850,000 and HM Revenue & Customs has made a claim of almost £438,000.
But the liquidator’s report, by Stephen Evans of Antony Batty & Company LLP, says there are insufficient funds to pay unsecured creditors, with Beatbullying’s assets worth between £7,500 and £8,800 when it went into liquidation on 7 November 2014.
Unsecured creditors include more than 50 subcontractors, many of whom advised the liquidator that they were employees and were helped to make claims through the Redundancy Payments Service. The service rejected the claims, saying the subcontractors were not employees and should therefore be treated as unsecured creditors.
The liquidator’s report says the Pension Protection Fund has confirmed that Beatbullying’s group personal pension scheme was not eligible to make a claim to the National Insurance Fund, and all unpaid contributions now rank as unsecured claims in the liquidation.
The bank HSBC is a secured creditor and is due £26,676, although there was no formal claim from the bank at the time the liquidator’s report was drawn up.
Former Beatbullying employees, who are preferential creditors, have submitted a claim valued at £42,602 to the Redundancy Payments Office.
During the course of a creditors’ meeting on 21 November 2014, the landlord "forced re-entry of the trading premises, distrained and removed any assets of value", the liquidator’s report says.
It says that when the liquidator gained access afterwards to remove any remaining assets, all that was recovered was of little value.
The liquidator says it would usually distribute 50 per cent of the first £10,000 of net property proceeds to unsecured creditors, but in this case it believes this would be disproportionate because the value of the assets is so low.
The liquidator’s report also details failed attempts to sell Beatbullying’s intellectual property rights. Its sister charity Mindfull was seen as having a considerably higher value than the rest of the assets combined and the liquidators focused on finding a buyer.
One potential buyer for the Mindfull model withdrew their offer after a third party made "an unsupported retention of title claim to the IPR which clearly affected the confidence of the interested party".
Other offers put forward were not substantial enough to fund the solicitors needed to alleviate any data protection risks, and the sale of IPR assets has therefore been abandoned.
Time costs for the liquidator’s report are £82,575, although no fees have been taken since the liquidator was appointed.
In the liquidation process, any money recovered goes first to liquidation expenses and secured creditors.
Next come preferential creditors, which include staff claiming for unpaid salaries, holiday pay and contributions to pension schemes.