Less than 10p in the pound likely for Inglis farmer creditors
© Savills An estimated £600,000 may be available for distribution to unsecured creditors of failed grain trader Alexander Inglis & Son.
The latest progress report on the administration of the company was made available at Companies House this week.
See also: Report reveals devastation of grain trade failure
The administrators will write to unsecured creditors to notify them of the possibility of a distribution and ask them to submit claims.
Those claims will be assessed by the administrator and there will be a limited time for appeals against any rejected or partially accepted claims.
Farmers account for more than one-third of the 166 unsecured creditors owed more than £6m by the business.
Among the farmer creditors, 23 businesses are owed more than £50,000, and their claims alone total £2.924m. Several are owed more than £100,000 and some more than £200,000.
The report states that discussions are ongoing regarding the recovery of a balance due from former Alexander Inglis & Son managing director Jim Aitken through a director’s loan account.
The company’s preferential creditors – its former employees – are to be paid in full the estimated £67,880 owed to them in pay and pension contributions.
HMRC is a secondary preferential creditor, owed £49,361 in VAT, PAYE, national insurance and Construction Industry Scheme contributions – these are sums paid by contractors to HMRC as deductions from subcontractors’ payments.
The administrators’ time costs for work on Alexander Inglis & Son and its associated businesses up to 11 November 2022 amount to almost £1.5m.
Deficiencies in the company’s books and records mean considerable time has been spent investigating these, says the report.