The PVC Group, which went into administration in September, has debts totalling nearly £50m, PRWmold.wiki has learned from the administrator’s statement of proposal (SoP) filed at the UK’s Companies House.
The 77-page document said the estimated total for “non-preferential” unsecured creditors is £35.1m.
Ernst and Young (E&Y), the administrators, said in a letter addressed to all known creditors (dated 24 October 2007) that “no distribution will be made to unsecured creditors”.
E&Y does not intend to convene an initial meeting of creditors, but it will be required to do so if within 12 days of the proposals being circulated a creditor holding at least 10% of the total value of debts requests such a meeting.
The secured debt of the group totals £13.9m, the creditors being Fortis Commercial Finance Ltd (£4.3m) and Fortis Bank (£9.6m).
The total for preferential creditors, based on employee claims for salaries and holiday pay, has been estimated at £50,000. “At this time we do not anticipate that there will be sufficient funds to make a distribution to the preferential creditors of any of the Companies,” the SoP reads.
The Companies refers to PVC Group plc, PVC Sales Ltd, ETE Realisations Ltd (formerly Eagley Trade Extrusions Ltd), PBP Realisations Ltd (formerly Pulse Building Plastics Ltd), Recycling Realisations Ltd (formerly PVC (Powders) Ltd), Polycol Ltd, and PVC Compounds Ltd.
In the report, the administrators outlined the PVC Group’s difficulties, which included the “breakdown and cessation” of the relationship between the Group and its primary resin supplier, and losses incurred from the “diversification into non-core areas.” The increase in raw material and energy costs was also cited.