PRESSUREFAB, the Dundee-based offshore container manufacturer which last year became a high-profile victim of the oil and gas downturn, went into administration owing more than £400,000 to the invoice finance arm of Lloyds Banking Group.
A new filing at Companies House shows Lloyds Bank Commercial Finance was due £427,000 at the time joint administrators Tony Friar and Blair Nimmo of KPMG were appointed last July.
The administrators, who have incurred time costs of nearly £161,000 since their appointment, state they do not expect LBCF to recover the debt in full.
In their progress report for the period July 18 to January 27, the administrators state: “LBCF were owed approximately £427,000 by the Company, with trade debtor invoices totalling £327,000 having been assigned to LBCF. It is expected that LBCF will not recover its debt from the assigned debt books. We do not expect that LBCF will receive a recovery from either of the companies which provided a cross guarantee. Interest and costs continue to accrue on LBCF’s debt.”
PressureFab was built by the award-winning entrepreneur Hermann Twickler into a £6 million turnover business with 90 staff since he formed it with his own cash in 2009.
But the German-born businessman was forced to call in the administrators after a sharp fall in revenues and insurmountable cash flow difficulties last July. Forty engineering staff were immediately made redundant at the company, which designed and manufactured specialist rig topside and subsea equipment at its 250,000 square foot based on the A90.
“LBCF are continuing to pursue the outstanding balances on the ledger, with our assistance where appropriate,” the administrators added. “We do not anticipate that LBCF will recover their indebtedness in full, and as such, there will be no surplus available from the secured debtor balances for the creditors.”
The administrators say they have incurred time costs of £161,607.75 since their appointment. They estimate that their time costs will increase, but signal in their report that “it is still our intention to draw fees in the region of £144,907.50, in line with the estimated [sic] contained in our original proposals.” The administration is due to end on July 27, but Mr Nimmo and Mr Friar anticipate seeking the period to be extended.
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