Category: Professional indemnity insurance
Liquidators dealing with the collapse of Bridge Business Recovery (BBR) are said to be considering whether professional indemnity insurance claims will help them to recover lost funds.
BBR went into administration last year, with Samantha Bewick and Colin Haig, partners at major consultancy and accounting firm KPMG, appointed as administrators in July.
A BBR creditor report has now revealed that the duo managed to obtain more than £780,000 for those owed money by the firm, Accountancy Age reports.
However, the same document is said to show that more than £800,000 was spent during the process, including £150,169 on legal costs and more than £13,000 on telephone, telex and faxes.
A total of £531,000 was transferred to the liquidators Samantha Bewick and John Standish, with unsecured creditors still owed £4.1 million, including £1.3m to HM Revenue & Customs.
The administrators' fees, not included in the expenses, were totalled at £700,000.
Accountancy Age reports that, as liquidators, Bewick and Standish are considering whether there are any other avenues that can be used to recover funds, including professional indemnity insurance claims.
A statement from KPMG regarding the case read: "Returns to unsecured creditors will depend on the outcome of the liquidators' investigations and the returns from the work in progress."
However, Accountancy Age reports that those close to the case do not expect creditors to receive any returns.
The partners of BBR sought administration after the discovery of "significant irregularities", with the idea of an insolvency group itself going under coming as a shock to the industry.
An initial plan proposed involved selling BBR to ensure business continuity and reduce redundancies, but the administrators decided they could not fund the firm while the complex process of finding a buyer was undertaken.
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