Administrator Peter Kubik of UHY Hacker Young said that the unsecured creditors “will not receive anything” following the company’s administration. The assertion contradicts a previous statement from MPI saying it was “confident suppliers would be paid in full” (PrintWeek, 1 May).
Many suppliers are owed hundreds of thousands of pounds, with one paper supplier £791,557 out of pocket. Another told PrintWeek: “We were told to expect near full repayment. Now we’re told we get nothing. I am livid.”
However, Mike Dolan, chief executive of MPI, said his comments were based on discussions with auctioneers, prior to the appointment of the administrators, which indicated that the plant and machinery (P&M) sale would produce in excess of £4m.
He said: “The administrators exercised their prerogative to accept termination of the asset finance agreements, reverting the P&M to the individual asset financiers who could then dispose of the P&M.”
Kubik responded by challenging the £4m valuation and revealing that “at least two” of the finance companies involved would not let the company retain the machinery.
Creditors have also raised questions as to the pro-minence of other MPI Group companies on the creditor list with debts of more than £1m.
Dolan said: “MPI companies purchased paper and other supplies for Butler and Tanner in April because it was inappropriate to incur any further liabilities while the future of the company was uncertain.”
He added that MPI and its subsidiaries financed and supported B&T before it went into administration, not the other way around.
The row overshadowed the reopening of the closed book printer on Monday (4 August) as Butler, Tanner & Dennis.
Initially the company will employ 80 of the near 300 workforce who lost their jobs when the company was closed on 26 April. Kevin Sarney, managing director, said he anticipated more will be employed in due course.
B&T CREDITORS' REPORT
Total unencumbered assets £497,750
Factored book debts £4m
Trade creditors £6.4m
Estimated shortfall to creditors £9.4m
