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By | Paul Kunert 12th February 2014 11:41

2e2 debt recovery specialist finds... £2,000 in six months

... no we didn't miss a zero

The administrator of 2e2 has recouped just a tiny fraction of the debts owed to the integrator, a Progress Report has revealed.

FTI Consulting took control of the company's affairs January '13 in the well-documented collapse. By March last year, it had struggled to recover one-tenth of the £43m on the debt ledger at its appointment.

So in came debt recovery specialists JP Associates to pursue outstanding monies owed. But as the report revealed, in the six months from July it uncovered just another £2k.

"The only realisation during the period for 2e2 Ltd is the receipt of a refund of circa £2,000 in respect of certain expenses that were prepaid prior to the administration," the report stated.

As a result, no receipts or payment accounts were prepared for the Holdings, Investments or Group firms, because "there have been no realisations into the administration estates of these companies," the report added.

When 2e2 went into administration, total creditors were owed £412m including £250.8m to firms with unsecured debts.

Some £4.8m has been coughed to secured creditors as a fixed charge dividend to date, the Progress Report revealed.

"Based on the information available we estimated that there will be no funds available to distribute to unsecured creditors of any of the companies," the report reconfirmed.

FTI previously confirmed it had struggled to recover book debts including invoices for services that had yet to be delivered, and the involvement of invoice discounters muddied the waters further.

Of 37 claims for retention of title, just 17 had been fully settled and in some cases both the supplier and the customers had claimed rights over the same batch of stock.

The administration process was extended last December to allow "all the investigations to continue", FTI added. ®

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