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Failure to obtain PI cover leads Spinnaka into administration

DAVID GILLAM: ALL CREDITORS WILL BE PAID
DAVID GILLAM: ALL CREDITORS WILL BE PAID

Spinnaka has entered into administration after it failed to obtain professional indemnity insurance.

Pure Panel Management has bought the assets of the surveyor in a pre-pack administration.

David Gillam, who was listed as a director at Spinnaka, was appointed to Pure Panel Management’s board on November 25 and will lead the new company.

All staff at Spinnaka have been retained and Gillam, who claims he is the largest creditor, says he fully expects all creditors to be paid.

He says: “Sadly the directors had no choice other than to place Spinnaka into administration once it became clear that it would not be able to obtain PII cover at renewal.

“But the company has traded profitably for the last 15 months after two years of losses and a number of clients have encouraged me to try to preserve employment for Spinnaka’s loyal staff and to continue to provide a service via a new vehicle.”

He adds: “I have therefore agreed to run Pure Panel Management and it has acquired the assets and goodwill of Spinnaka.”

Pure has obtained the appropriate PII cover and will source valuations on behalf of lenders and brokers, and manage the process by which valuations are returned to the instructing source using both Quest and xit2.

Pure was originally called Sandco 1171. It was registered at Companies House on October 21 by Ward Hadaway solicitors, which was listed as the sole owner.

But on November 25 Sandco 1171 changed its name to Pure Panel Management. The same day Colin Hewitt, head of company and commercial at West Hadaway, resigned from the firm as a director and David Gillam was appointed director.

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  • rob 2nd May 2013 at 7:11 pm

    How David Gillam escaped a custodial sentence is astonishing. He set up an organisation that creamed £millions off consumers and surveyors alike and still went bust. Spinnaka are the reason that hundreds of surveying firms cannot obtain insurance. This is one of the worst scams in the mortgage/surveying industry.