Deloitte has published proposals for its
administration of Total Asset Finance, outlining concerns over the
existence of certain contracts.
The document describes the circumstances
leading to the administration and states that Belgian banking group
KBC launched an enquiry in Q3 2010 to verify whether contracts
between Total and H2O Networks genuinely existed.
Go deeper with GlobalData
Total owed £133m (€156m) to KBC as of 17
January. It is said to have entered an agreement with H2O in 2006,
under which KBC advanced about £65m to H2O.
KBC has since obtained a freezing and
proprietary injunction against Total and its sole director, Steve
Dartnell, for an initial sum of £24m, but later increased to
£58m.
KBC rejected a proposal from Total to ring
fence certain assets by transferring them to a newly incorporated
company, which would give first debenture security to KBC and pay
funds realised in respect of the assets to the banking group.
It petitioned for Total to be put into
administration on 17 January this year. The banking group accounts
for 99% of total estimated creditor claims.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe Serious Fraud Office was called in during
the months leading to the petition, and in November 2010, it
secured various books and records from the company.
Deloitte’s forensic team has also imaged all
IT equipment and servers, searched Total’s premises and logged all
documents ready for court.
It is seeking to gain access to documents and
records removed by the SFO in November. Total’s head office has
been secured.
It has also been confirmed that a total of 12
employees, including Dartnell, have been made redundant. The
remaining three employees have been retained and briefed about the
effect of the administration.
An administration bank account has been set
up, with funds amounting to about £2.8m. The company is not to be
immediately liquidated and the document issued by Deloitte also
indicates it will not be sold as a going concern.
