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Administrator examines Innovate's £54m deficit
Page 6
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By Chris Tindati THE ADMINISTRATOR handling the fallout from Innovate's collapse is digging deeper to establish whether action should be taken against the company's former directors after it estimated a £54m shortfall across the group.
BDO Stoy Hayward describes this as a "significant deficiency" that warrants analysis and has copied the group's financial computer records and e-mail system to help with its investigations.
Meanwhile, unsecured creditors are facing up to receiving little if anything from Innovate's demise: non-preferential claims for its Logistics business alone hit £14.2m in July, with £8.8m from creditors.
Hens-based Funstons is owed 15,500, but managing director Dave Shaw remains doubtful he will be paid. "It's looking like zero at the moment, which is what most people must be saying."
Shaw says he was aware the
company was struggling. -We knew there were issues and we mitigated our losses as best we could."
Another haulage firm in the South-West, unwilling to be named, confirms it is owed more than £7,000. Its boss claims Innovate was -always slow at paying, then they stopped all of a sudden". He adds: "We were chasing money for a few weeks. We could tell it was in difficulties so we stopped working. We did get some of it hack; the financial director was as helpful as he could be."
Stuart Naish, managing director for industry consultancy Jigsaw Logistics, says it is owed £5,500 for project work. He says: "It came as a surprise to me, although having understood the reasons behind it, it makes sense really."
A BDO Stoy Hayward report states: "Concern has been expressed by creditors and the parent company in relation to the management and operation of the businesses by previous management. To establish whether there are any possible actions that could be brought against the former management/directors, we will be undertaking a forensic investigation."
BDO was unable to comment further as CM went to press. Parent company Eimskip, which withdrew its support from the group in May, did not comment.