View more on these topics

Leadbay creditors only likely to receive 10%

Some creditors of Leadbay are set to receive just 10% of money owed to them after the firm entered into administration, Mortgage Strategy understands.

Creditors have told Mortgage Strategy that administrator Baker Tilly estimates that non-preferential creditors, which will likely include brokers, will receive around 10 pence in the pound.

The total amount of money to be recovered is believed to be around 20% with most paid to preferential creditors such as the liquidators themselves and banks.

But Baker Tilly says it has not estimated the amount it expects to recover.

It says nothing is finalised and it could take up to four to five months to verify the final amounts.

Leadbay’s parent company Add Momentum Innovations went into liquidation in December making 21 staff redundant.

The lead generation firm was bought by Mitchell Farrar Group and is expected to relaunch later this year.

Grant Stevens, former managing director of Leadbay, now works with Mitchell Farrar and believes creditors of the company will receive some money.

He says: “I no longer have any powers with Leadbay creditors but I believe there is going to be a return.

“Certainly all the work we did at the end of last year was to help people get paid.”

 

Recommended

Infographic - thumbnail

Infographic — health cash plans 2014

Health Shield has strengthened its position in the cash plan market, according to the latest Laing & Buisson report, increasing its market share by income from £27m in 2012 to £29m in 2013. The Health Cover UK Market Report 2014 revealed that the non-profit-making Friendly Society was the only provider in the top four to have increased its market share by income over the past year. Health Shield was also the only cash plan provider in the top four to have increased its market share by income every year for the previous five years. This infographic presents the figures.

Newsletter

News and expert analysis straight to your inbox

Sign up