£40,000 clawed back in Mortgage Times commission

17 September 2010 | By Natalie Thomas

The administrators for defunct network The Mortgage Times Group have revealed that £40,000 has been collected in commissions and pipeline monies owed to the network.

Phoenix CPG, part of the Phoenix Group, acquired the assets of Mortgage Times in March.

A three-year agreement has been entered into with Phoenix whereby it collects commission income on behalf of the joint administrators.

John Kelmanson and Karyn Jones were appointed joint administrators in February and have today filed an update report on Companies House for the period February to August.

In the report they say they are still pursing outstanding debts owed to the company but are now being assisted by its former directors and staff.

The report says: “We currently anticipate there will be a surplus available for unsecured creditors, but it is difficult to estimate the amount of the dividend until the remaining assets are realised.”

The administrators anticipate more will be collected from book debts, pipeline monies and commissions, and also if a buyer can be found for the network’s property.

To date unsecured claims received total £975,000, including from HM Revenue & Customs, falling short of the £3.2m owed to unsecured creditors.

The report says there are numerous claims that have still not been received but it will notify those owed money should some be payable.

Barclays holds a fixed and floating charge over the assets of the network. The joint administrators are however required to create a fund out of the company’s net floating charge property for the benefit of the unsecured creditors - known as the prescribe part.

It estimates that this fund currently stands as £61,235.

But says: “This is purely an approximate figure as there are so many uncertainties in respect of potential realisations still currently being addressed.”

The administrators say if a dividend is paid to unsecured creditors the network will be placed into liquidation subsequent to the administration, but if there are insufficient funds it will be placed into dissolution.

The administrators’ costs have already reached over £65,000 since February because of the complex nature and the scale of the operation in relation to the network of appointed representatives, according to the report.

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