Administrators Vantis are still in the process of unravelling
what went wrong at Smartfundit.com Ltd and parent company Corporate
Computer Lease Ltd (CCL), Leasing Life can reveal.
Peter Wastell and Michael Young, the joint administrators of
both companies, are currently in the process of preparing their
confidential report looking at Justin Floyd and Suki Gallagher’s
conduct in the run-up to the administration.
Go deeper with GlobalData
Shortly after Smartfundit and CCL went bust, Floyd and Gallagher
were put under the spotlight by one of their funders, BayTech,
which had claimed to have been “misled”, and accused them of
financial mismanagement.
BayTech, a German venture capital firm, had invested £3.3
million (€3.7 million) into the two companies just five months
before they fell into administration.
Earlier this year, Vantis uncovered that over £750,000 of
finance companies’ funds had been absorbed into the company’s
balance sheet, pending onward payment to vendors. At the time,
Wastell confirmed that there was “certainly evidence that these
funds were not placed in separate trust accounts, and that they
were being used as internal working capital”.
Now, Wastell’s report, produced under the Companies Directors
Disqualification Act, will be submitted to the Disqualification
Unit of the Department of Trade and Industry when it has been
completed, he said.
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 GlobalDataUnsecured debts
Vantis’s latest report shows that to-date, it has received
claims totalling £886,847 from unsecured creditors of CCL, and £3.2
million from unsecured creditors of Smartfundit – although this
includes a £2.9 million inter-company debt between Smartfundit and
CCL.
To help raise funds, Vantis Asset Finance (VAF) was appointed
last summer – for a 15 percent commission – to collect both
companies’ secondary income.
Thus far, VAF has collected £128,526.10 from CCL’s brokered
lease contracts and £900 from Smartfundit.
As the two companies’ portfolios mature over the next three
years, the financier expects the amounts to increase significantly,
however, with potentially £1.35 million generated from CCL’s
contracts alone.
Director’s loan
Finally, with regards to a contentious £289,545 director’s loan
to Floyd, discovered in CCL’s books last summer, Wastell said that
the matter was “ongoing”, as Floyd has continued to deny he owes
this money.
“Shortly after my appointment,” said Wastell, “my solicitors in
this matter [CMS Cameron McKenna] made a demand on Mr Floyd to
repay the amount due to the company.
“Via his solicitors, Mr Floyd has denied liability for the
amount, and has sought to question whether the amount was due to be
repaid to the company.”
Jason T Hesse
