Banks lost first pick at the creditors’ pie after the Brumark case in 2001 ruled that they had to stand in line behind the government and company employees who were owed money.
But R3, the insolvency profession’s trade body, has accused the big banks of attempting to maintain preferential status. John Verrill, R3 vice-president, said: ‘Banks are in denial about preferential creditors’ claims to funds.’
He said banks are applying pressure to be paid first while the Inland Revenue and Customs are saying that if they are not paid first they will hold insolvency practitioners accountable.
He added the banks had ‘made no attempt to resolve the issue, other than delaying payments and bullying insolvency practitioners. There is an atmosphere of menace, a refusal by the banks to confront reality.’
John Thirlwell, director of the British Bankers Association said Verrill?s statements were unfair but added: ‘There is no doubt that different banks are pursuing different policies.’
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children