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January 12, 2010updated 12 Apr 2017 4:28pm

Smartfundit’s administrators preparing director disqualification report (Free)

(Free) Administrators Vantis are still in the process of unravelling what went wrong at Smartfundit.com Ltd and parent company Corporate Computer Lease Ltd (CCL), Leasing Life can reveal.

By Jason T

Administrators Vantis are still in the process of unravelling what went wrong at Smartfundit.com Ltd and parent company Corporate Computer Lease Ltd (CCL), Leasing Life can reveal.

Peter Wastell and Michael Young, the joint administrators of both companies, are currently in the process of preparing their confidential report looking at Justin Floyd and Suki Gallagher’s conduct in the run-up to the administration.

Shortly after Smartfundit and CCL went bust, Floyd and Gallagher were put under the spotlight by one of their funders, BayTech, which had claimed to have been “misled”, and accused them of financial mismanagement.

BayTech, a German venture capital firm, had invested £3.3 million (€3.7 million) into the two companies just five months before they fell into administration.

Earlier this year, Vantis uncovered that over £750,000 of finance companies’ funds had been absorbed into the company’s balance sheet, pending onward payment to vendors. At the time, Wastell confirmed that there was “certainly evidence that these funds were not placed in separate trust accounts, and that they were being used as internal working capital”.

Now, Wastell’s report, produced under the Companies Directors Disqualification Act, will be submitted to the Disqualification Unit of the Department of Trade and Industry when it has been completed, he said.

Unsecured debts

Vantis’s latest report shows that to-date, it has received claims totalling £886,847 from unsecured creditors of CCL, and £3.2 million from unsecured creditors of Smartfundit – although this includes a £2.9 million inter-company debt between Smartfundit and CCL.

To help raise funds, Vantis Asset Finance (VAF) was appointed last summer – for a 15 percent commission – to collect both companies’ secondary income.

Thus far, VAF has collected £128,526.10 from CCL’s brokered lease contracts and £900 from Smartfundit.

As the two companies’ portfolios mature over the next three years, the financier expects the amounts to increase significantly, however, with potentially £1.35 million generated from CCL’s contracts alone.

Director’s loan

Finally, with regards to a contentious £289,545 director’s loan to Floyd, discovered in CCL’s books last summer, Wastell said that the matter was “ongoing”, as Floyd has continued to deny he owes this money.

“Shortly after my appointment,” said Wastell, “my solicitors in this matter [CMS Cameron McKenna] made a demand on Mr Floyd to repay the amount due to the company.

“Via his solicitors, Mr Floyd has denied liability for the amount, and has sought to question whether the amount was due to be repaid to the company.”

Jason T Hesse

 

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