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.”