Ernst & Young, administrator of the failed Frank Thomas group of motorcycle accessory and apparel companies, has issued an exit report as it abandons debt recovery activities and moves to a formal dissolution of the business.
The period of court-sanctioned administration officially ends on 26 January 2013 but Ernst & Young ceased further attempts to chase outstanding debtors on 15 January after only collecting a mere £6000 since its previous update statement last November. The total recovered from an opening debt balance of £4.4m when Frank Thomas went bust now stands at £1.87m. A shortfall of £2.53m has therefore been written off.
After disposal of group assets and debt recovery operations over a two-year period, the secured creditor Barclays Bank received £3.9m against the £13.9m it was owed, and has consequently suffered a £10m loss. Preferential creditors have been paid out in full. But unsecured trade creditors who were due circa £5.4m got nothing.
The administrator says it incurred time costs of £924,981 but has agreed a substantial discount with secured creditor Barclays. As a result, Ernst & Young trousered a total of £619,015 for its efforts, plus £16,785 in expenses.