Very interesting developments and not unsurprising reactions between Jan Vandamme and Susannah.
As a creditor (and shareholder) of Button Group I have received a copy of the Administrator’s Report. There is nothing for the creditors – hope and pray that the directors continue to be paid from Future Media.
The Report makes a few worthy comments
FINANCIAL HIGHLIGHTS for Button Group for 2005 – 2008
The Report gives the following figures:
|
£000’s
|
Turnover
|
Gross Profit
|
Net Profit
|
|
30 June 2005
30 June 2006
30 June 2007
30 June 2008
|
7,089
11,214
9,232
7,350
|
2,300
4,149
3,851
2,992
|
(871)
79
(1,801)
(309)
|
As at 30 June 2008 the P&L a/c was a deficit of £2,812,000.
The Group’s creditors per the Statement of Affairs are
|
|
£ 000’s
|
|
Future Media
Trade Creditors
Yorkville
Receivables
|
2,380
1,687
------
4,067
14,625
------
18,692
64
|
Button Group was lumbered with the £14.6 million Yorkville poison pill however neither the Report or Companies House filings provide what was the effect on the P&L and therefore how much was diverted from paying the trade creditors. Based on the trading track record why was the £14.6 million Yorkville debt recognised in Button Group as it could never support such debt unless Future Media issued a letter of support? Reckless or negligent – someone will decide.
How bad was 2008/09? Especially as the Dubai and Cannes shows were so successful!!!
The Administrators are Vantis and were appointed at the behest of Barclays Bank. They replaced KSA who were appointed under the earlier Corporate Voluntary Arrangement – why did the bank feel it necessary to take this action?
STATUTORY MATTERS – STATEMENT OF AFFAIRS
The Administrator states in his Report that shortly after their appointment (10 September) the directors were asked to submit a statement of affairs. It is interesting to note that “No statement of Affairs has yet been received” from the directors. Notwithstanding that the accountant was retained for a month after all other employees had been made redundant. This is an old trick of ensuring that the accounts are a mess so that the directors can claim that they did not know that the company was trading whilst insolvent.
DIRECTORS CONDUCT
I do not know if it is routine but the Administrator invites recipients of the Report to lodge details of any cases where misconduct is suspected. In this respect the correspondence I have with Button makes interesting reading and believe are a basis for lodging an appropriate complaint.
This is a sorry and sordid tale which has all the ingredients for going the distance. Who knows the film rights could be used to pay something to the shareholders / creditors.
