Accident Group to remain in administration
A committee of creditors has voted to keep The Accident Group in administration, rather than liquidate it, following a heated meeting of interested parties yesterday.
Link: Accident Group faces claims probe
Held in Manchester amid reportedly angry scenes, the committee, which includes Lloyds of London and the Trade Union Congress, voted to keep the personal injury group in administration for the time being, to raise funds by operating it as a going concern.
Also at the meeting, administrators PricewaterhouseCoopers revealed how the fortunes at the company had dipped over the last year.
Profits in 2002 were £17.8m, but in the eight months to April 2003, the company tumbled into the red, recording a loss of £56.7m. When it went into administration at the end of June, its net liability was £81m.
Michael Horrocks, joint administrative receiver, revealed that the Inland Revenue, as preferential creditor, would recover only 8.2p for every pound it is is owed.
Ordinary creditors are unlikely to receive anything unless they consider legal action, Horrocks said.
The Accident Group collapsed after its parent company, The Amulet Group, ran out of money to pay its employees’ wages and after it failed to secure financing from HBOS.
PwC is also administrators the Amulet Group.