MCR administrators save Typhoon, but staff lose out

Typhoon-Serious questions to be asked

We are a small business and did not realise this website forum was available, until some other creditors, bought it to my attention, so congratulations on providing a valuable voice.

I have decided to write as the MCR Administrators report on Typhoon has just arrived in the post and it details the staggering levels of debt left by Typhoon.

I fully agree with " Out of pocket's" comments.

How could a company have traded for so long, when it was clear it was insolvent and unable to met it's obligations?

Typhoon never paid on time, it always strectched our credit terms to over 3 Months and locked us into a cycle of requiring more credit to make more and more outstanding payments, with constant promises of arrears being cleared, that never were.

How could the Directors have been allowed to have taken so much credit over a long and sustained period of time, knowing that it would never be paid back ?

How could Typhoon's Auditors allow this company to trade for two years and sign off accounts, when the company lost nearly £3,000,000 in 18 months and took credit from every source to pay for it ?

Surely it is the Auditors responsibility to warn the Directors and Creditors of the company's position and if the Directors ignore it take the appropriate action ?

Don't the Directors have obligations and a responsibility to operate the business in a responsible fashion ?

The MCR report is a damning summary of a business run in an appalling manner for 2+ years, the responsibility must be shouldered fully by the Directors, the decision makers.

My own company is small, We are a very hard working team and my debt is under £15,000, a lot of money for me and as a result my profits this year will be wiped out and I have a difficult meeting with my Bank Manager as a result. For others though it is much worse, the MCR report runs into pages and pages of debts and many people are owed huge sums,that I cannot believe.

More shocking is that the MCR report advises that Creditors will get less than a few pence in the £ of debt, a % that is even more galling and outrageous as it shows just how few assets and cash Typhoon actually had and how much they relied on other companies and suppliers, like me to fund their business.

Even the Inland Revenue is owed over £400,000 and this is one less vital piece of hospital equipment, that might not be purchased and that with government cutbacks is a great shame.

Many UK and overseas companies will be seriously affected and it wil take along time for them to recover, some of course won't recover.

Posted by: A misled Supplier- Hit by Typhoon, 08 Jul 2010 | 00:00