JOINT LIQUIDATORS PROGRESS REPORT FOR THE ... - FTI …/media/Files/...Joint Liquidators [ Progress Report 4 · FTI Consulting, LLP. EXPERTS WITH IMPACT™ reditors [ right to request

JOINT LIQUIDATORS’ PROGRESS REPORT FOR THE PERIOD

1 DECEMBER 2016 TO 30 NOVEMBER 2017

AVIATOR AIRPORT SERVICES UK LIMITED (COMPANY NUMBER 08979599) (“AAS”)

AVIATOR LGW LIMITED (COMPANY NUMBER 08840120) (“LGW”)

AVIATOR BHX LIMITED (COMPANY NUMBER 08840141) (“BHX”)

AVIATOR NCL LIMITED (COMPANY NUMBER 08840117) (“NCL”)

(COLLECTIVELY “THE COMPANIES”)

29 JANUARY 2018

EXPERTS WITH IMPACT™

JOINT LIQUIDATORS’PROGRESS REPORT


Table of Contents

1. Introduction ............................................................................................................................................................. 3 2. Summary of estimated return to creditors .............................................................................................................. 4

3. Background and liquidation approach ..................................................................................................................... 5 4. Progress of the Liquidations .................................................................................................................................... 6 5. Estimated outcomes ................................................................................................................................................ 8 6. Next report and further questions........................................................................................................................... 8 Appendix A – Statutory information ............................................................................................................................ 9 Appendix B – Liquidators’ receipts and payments account ....................................................................................... 11 Appendix C – Liquidators’ time cost and expenses.................................................................................................... 15 Appendix D – Time costs analysis .............................................................................................................................. 19 Appendix E – Additional Information in relation to Liquidators’ fees pursuant to SIP9 ............................................ 23

Appendix F – Creditors’ statement of claim form ...................................................................................................... 25

Appendix G – Statement of Prior Professional Relationship ..................................................................................... 26

Appendix H – Notices of decision by correspondence and voting forms .................................................................. 27 Appendix I – Extract from the rules ........................................................................................................................... 33

Joint Liquidators’ Progress Report

3 · FTI Consulting, LLP. EXPERTS WITH IMPACT™

1. Introduction

1.1 Lisa Rickelton and Andrew Johnson were appointed as the Companies’ nominated liquidators (“the Liquidators”) by resolutions of

the members of the Companies on 1 December 2016, in accordance with section 84(1)(b) of the Insolvency Act 1986 (as

amended) (“the Act”). Following the meeting of the Company’s creditors, held on 12 December 2016 in accordance with s98 of

the Act, Andrew Johnson and I were confirmed as joint liquidators of the Company (“the Liquidators”).

1.2 As insolvency practitioners we are bound by the Insolvency Code of Ethics. Prior to our appointments we considered potential

ethical threats in undertaking the liquidations in accordance with the Code, and we did not consider that there were any matters

preventing us taking these appointments. For reference we enclose at appendix G, a Statement of Prior Professional Relationship

for your information.

1.3 This report, together with appendices, contains information in relation to the activities undertaken during the period 1 December

2016 to 30 November 2017 (“the Period”), receipts and payments into the insolvency estates (Appendix B) and the

Administrators’ time costs in accordance with Statement of Insolvency Practice 9 (“SIP9”) (Appendices C and D) since the date of

our appointment.

1.4 The estimated return to creditors is set out in Section 2 and 5 of this report. To date the Liquidators have paid a 100p in the £

dividend to the preferential creditors of LGW and envisage being in a position to declare a dividend to the Companies’ unsecured

creditors during the first half of 2018.

1.5 The Insolvency (England and Wales) Rules 2016 (“the Rules”) came into force on 6 April 2017. The new Rules replace the

Insolvency Rules 1986 (as amended). Where appropriate, we have included references to the new Rules together with the former

references.

1.6 In recognition of the additional time costs incurred and pursuant to Rule 18.24 of the Rules, the Liquidators are requesting the

approval of creditors to increase the Liquidators’ fee estimate for LGW, BHX and NCL as set out in their initial letter to creditors

dated 1 December 2016. Further details are provided below.

Meeting of creditors and liquidators fee basis

1.7 A meeting of creditors was held on 12 December 2016 to consider whether to pass resolutions appointing liquidation committees

which would, amongst other matters, consider the basis on which the Liquidators are remunerated.

1.8 No liquidation committee was established in respect of any of the Companies, so resolutions were proposed and passed by the

creditors at each of the meetings on 12 December 2016 that the Liquidators’ fees be determined by time properly spent in

dealing with the liquidations pursuant to rule 18.16 (formerly rule 4.127 of the Insolvency Rules 1986 as amended) (“the Rules”).

1.9 A creditors’ guide to liquidators’ fees setting out creditors’ rights to further information and how fees are approved can be found

here:

http://www.fticonsulting-emea.com/~/media/Files/emea--files/creditors-portal/cip-emea-forms-info/guide-to-liquidators-fees-

oct-2015-ew.pdf

1.10 If creditors wish to be supplied with a hard copy of this guidance they should contact us at the details set out below.

1.11 A guide to insolvency in general can be found here:

http://www.creditorinsolvencyguide.co.uk/

1.12 Additional information in relation to our staffing policies can be found in Appendix E.

Creditors’ right to challenge remuneration and/or expenses

1.13 Any secured creditor or, unsecured creditor with the support of at least 10% in value of the unsecured creditors or with leave of

the Court, may apply to the Court for one or more orders (in accordance with Rule 18.34 (formerly rule 4.131) of the Rules)),

challenging the amount or the basis of the remuneration which the Liquidators are entitled to charge or otherwise challenging

some or all of the expenses incurred. Such applications must be made within eight weeks of receipt by the applicant(s) of the

report detailing the remuneration and/or expenses being complained of, in accordance with Rule 18.34(3) (formerly rule

4.131(1B)) of the Rules.

http://www.fticonsulting-emea.com/~/media/Files/emea--files/creditors-portal/cip-emea-forms-info/guide-to-liquidators-fees-oct-2015-ew.pdf


http://www.creditorinsolvencyguide.co.uk/



Creditors’ right to request information

1.14 Any secured creditor or unsecured creditor with the support of at least 5% in value of the unsecured creditors or, with leave of

the Court, may, in writing, request the Administrators to provide additional information regarding remuneration or expenses to

that already supplied with this document. Such requests must be made within 21 days of receipt of this report, in accordance

with Rule 18.9(2) (formerly 4.49E(2)(b)) of the Rules.

1.15 I enclose further information in relation to creditors’ rights at Appendix I.

Liquidator’s request to increase remuneration

1.16 Pursuant to rule 18.24 of the Rules the Liquidators are requesting approval from the creditors to increase the Liquidator’s fee

estimate in LGW, BHX and NCL by £100k, £25k and £25k, respectively. As discussed in detail at appendix C, the request for an

increase in the Liquidators’ fee estimate is in recognition of the additional time costs incurred principally in respect trade debtor

realisations (with realisations of £377k in LGW, £205k in BHX and £391k in NCL, representing a £27k, £75k and £321k uplift,

respectively, as compared to the initial estimates as set out in the directors’ Statement of Affairs) and in dealing with the

significant volume of employee related issues, (including a detailed review of employee refunds to ensure correct administration

of the Trust accounts set up for the benefit of employees, in accordance with the emergency short term funding agreement,

ensuring the correct payment of a 100p in the £ dividend to preferential creditors and providing accurate reference request

details).

1.17 Please note the Liquidators are not requesting an increase in fees in AAS. As AAS is a holding company, it did not have trade

debtors or any employees.

1.18 Pursuant to rule 18.30(3) appendix C provides a summary of the additional work undertaken by the Liquidators and the rationale

behind why an increase in remuneration is being sought.

1.19 Voting forms to either approve or reject the request for Liquidator’s to increase remuneration can be found in appendix H.

Creditors have until 22 February 2018 to register their vote.

Further information

1.20 Pursuant to Rule 1.50(a) of the Rules all further information in respect of the liquidation of the Companies (except for dividend

notices, which will be mailed to creditors) will be placed on the website below. Please note, no notice will be provided to

creditors of updates placed on the website, however, I anticipate the next report being available towards the middle of 2018:

http://www.fticonsulting-emea.com/cip/aviator

1.21 If you have any queries in relation to this report or the Liquidation in general, please contact Stelios Joannides at

[email protected] or on 020 3727 5611. Creditors can also use these contact details to request a hard copy

of this report if required.

2. Summary of estimated creditor returns

Estimated dividend for creditors

Estimated dividend for creditors / shareholders - AAS

Secured creditors Preferential creditors Unsecured creditors Share Capital

Estimated debt/equity (£)

Estimated return

(£ or p/£)

n/a

n/a

n/a

n/a

6,359k

1.0 – 1.1p

1

nil

mailto:[email protected]



Estimated dividend for creditors / shareholders - LGW



Estimated return

(£ or p/£)

n/a

n/a

44,895

100p

10,577k

7.3 – 8.4p

1

nil

Estimated dividend for creditors / shareholders - BHX



Estimated return

(£ or p/£)

n/a

n/a

n/a

n/a

6,215k

4.4 – 4.8p

1

nil

Estimated dividend for creditors / shareholders - NCL



Estimated return

(£ or p/£)

n/a

n/a

n/a

n/a

4,174k

10.1 – 10.7p

1

nil

2.1 The estimates above represent the possible return to creditors based on information currently known and may be subject to

change and assume a pro-rata return to creditors of the same class in accordance with UK insolvency law. Unsecured creditors

rank behind both secured and preferential creditors, whilst shareholders rank behind all classes of creditor.

2.2 Further details of the estimated returns to each class of creditor are set out in section 5 of this report.

3. Background and liquidation approach

3.1 The Companies were part of a wider group of companies (“the Group”) providing ground handling services at airports across the

United Kingdom and the Nordics.

3.2 The UK ground handling services market conditions in recent years has been challenging, with significant pricing pressures and

low margins which resulted in only marginal profits generated by LGW and losses in BHX and NCL during 2014 and 2015. The

Companies problems were further compounded by a lack of operational control and deficiencies in planning and administrative

processes materially impacting 2016 trading across LGW, BHX and NCL. Accordingly during the first quarter of 2016, the

Companies launched a comprehensive action programme to improve processes and operations with a new UK management team

being appointed.

3.3 Despite positive initial results from the action plan, financing discussions at a group level could not be agreed, resulting in the

Group’s principal lenders withdrawing their support of the Group’s UK operations.

3.4 In response to this decision, on 17 September 2016, plans were developed to support a managed wind down and exit the ground

handling markets in London Gatwick, Birmingham, and Newcastle Airports. These plans included securing short term emergency



funding from key stakeholders to ensure an orderly exit with minimum disruption to the Companies’ customers, employees and

those airports affected by the planned exit.

3.5 During the wind down period, the Companies transferred all service contracts to alternative providers or ‘in-house’ to the airline

customers. Through successful Transfer of Undertakings (Protection of Employment) Regulations (“TUPE”) these transfers,

preserved the jobs of c.1,300 out of a total workforce across the Companies of c.1,400.

3.6 The objective of the short term funding provided to the Companies was to provide the financial support required to maintain

continuity of the Companies’ ground-handling services with a view to achieving a managed handover of these services to

alternative providers on or before 30 November 2016.

3.7 On 28 November 2016 the directors of the Companies convened a board meeting where the chairman noted that the orderly

transition of the Companies' operations was substantially complete with the final airline customers transitioning their operations

on 30 November 2016.

3.8 The Companies ceased trading on 30 November 2016 and were placed in to creditors’ voluntary liquidation on 1 December 2016.

3.9 The liquidation approach has been to realise the Companies’ remaining assets (principally book debts), facilitate the payment of

November overtime owed to the Companies’ former employees from the designated Trust accounts set up as part of the short

term funding agreement and to distribute net realisations to the Companies’ unsecured creditors.

3.10 To date, a 100p in the £ distribution has been made to the preferential creditors of LGW and the Liquidators expect to declare a

distribution to the Companies’ unsecured creditors in the early part of this year.

4. Progress of the Liquidations

Receipts and payments during the Period

4.1 Attached at appendix B is the receipts and payments account for the Companies for the period 1 December 2016 to 30 November

2017.

4.2 The material receipts and payments by liquidation entity during the period are listed below.

LGW

Receipts

Trade debtor realisations of £377k;

Pre-appointment VAT refund of £306k;

Realisations from funding stakeholders of £275k;

Receipt of LGW’s share of monies held on Trust in respect of November overtime of £203k.

Payments

Liquidators’ fees of £161k;

November overtime paid to LGW employees of £149k, pursuant to the terms of the Trust arrangements established as part of the short term funding agreement.

BHX

Receipts

As part of the short term funding agreement, £355k was transferred to the liquidation estate and held on Trust to settle the November overtime payable in accordance ‘with the Companies’ overtime policies, to the Companies’ former employees;


Realisations from funding stakeholders of £79k;

Pre-appointment VAT refund of £98k.

Payments

Transfers to LGW and NCL for their share of monies held on Trust in respect of November overtime - £217k;


The payment of November overtime to former employees of BHX totaling £18k (including PAYE/NI), pursuant to the terms of the Companies’ overtime policies.



NCL

Receipts


Receipt of NCL’s share of monies held of Trust in respect of November overtime of £14k.

Payments


The payment of November overtime to former employees of NCL totaling £14k (including PAYE/NI), pursuant to the terms of the Companies’ overtime policies.

4.3 There have been no material receipts or payments in AAS other than the receipt of liquidation funding to cover the Liquidation

expenses (totaling £14k including Liquidators’ fees) pursuant to the Liquidation funding Trust arrangements established as part of

the emergency short term funding agreement.

4.4 As shown in the Directors statement of affairs there were no realisable assets held by AAS.

Book Debts

4.5 During the period, the following debtor collections were made:

LGW trade debtor collections of £377k;

BHX trade debtor collections of £205k;

NCL trade debtor collections of £391k.

4.6 The collection of trade debtors has been a key focus of the Liquidators and would note that the total realisations of £973k

represents an increase in realisations of £423k as compared to the initial estimate outlined in the statement of affairs.

4.7 Debtor collections are now largely complete.

4.8 Following a reconciliation of funding received prior to the Companies’ liquidation in accordance with the emergency short term

funding agreement and services rendered by the Companies during the period of operational wind down, certain funding

stakeholders were found to be in net debtor positions totaling £401k (£322k LGW and £79k BHX). All monies due from these

funding stakeholders have been recovered by the Liquidators in full.

4.9 Total book debt realisations therefore amount to £1.4m.

Employees matters

4.10 As part of the short term funding agreement, monies were transferred into the liquidation estates and held on trust for the

benefit of employees in respect of November overtime.

4.11 During the liquidations, having extensively reviewed all data available as at the date of their appointment and in accordance with

the Trust arrangements the Liquidators actioned payment, to the Companies’ former employees for all correctly authorised

overtime (in accordance with the Companies’ overtime polices) worked during November 2016. There were certain employee

queries in relation to overtime calculations which we sought to review and reconcile to the available data as far as possible.

However, ultimately we had to rely on the records available.

4.12 A first and final distribution of 100 pence in the pound was made to preferential (employee) creditors of LGW on 14 November

2017. Further details are provided in section 4 on the report.

Tax and VAT

4.13 We have notified HMRC of our appointments and the Companies’ pre-appointment corporation tax returns have been

submitted. We note that it is unlikely that there will be any pre appointment corporation tax recoveries. The Liquidators will

submit any further corporation tax returns required during the course of the liquidations.

4.14 The relevant VAT notifications have been made to HMRC and the post appointment VAT returns to date have been submitted.

The companies have been deregistered from VAT and the final VAT returns will soon be submitted.



Statutory investigations

4.15 We have reviewed the conduct of all directors who served in respect of the Companies in the 3 year period prior to the date of

the Liquidations and made the necessary filings pursuant to the Company Directors Disqualification Act 1986.

4.16 The contents of the filings made are confidential.

5. Estimated outcomes

Secured creditors

5.1 There are no secured creditors.

Preferential creditors

5.2 Under the Act the main classes of preferential creditor are employees in respect of certain claims in relation to arrears of wages,

holiday and pensions contributions. All employees were paid arrears of wages prior to the date of liquidation and were paid their

salaries to the date of their redundancy.

5.3 A notice of intention to declare a dividend was sent to all preferential creditors of LGW on 29 September 2017. A full dividend of

100 pence was paid to preferential creditors of LGW on 14 November 2017.

Unsecured creditors

5.4 Unsecured creditors rank behind both secured and preferential creditors.

5.5 Under Section 176A of the Act where after 15 September 2003 the Company has granted a creditor a floating charge, a

proportion of the net property of the company achieved from floating charge asset realisations must be made available for the

unsecured creditors (“the Prescribed Part”). For the Companies this does not apply as there is no floating charge creditor.

5.6 The estimated values of realisations, net of the costs of the Liquidation, are expected to be insufficient to repay the unsecured

creditors in full. Pursuant to rule 14.4(3), where it is likely that there will be sufficient funds to make a distribution to unsecured

creditors then, with the agreement of the office holder, review the creditors' claims already received and consider whether

further information is required in support of each proof.

5.7 Creditors wishing to submit a claim should use the creditors statement of claim form provided at Appendix F, with any claims

made being supported by copy invoices or other relevant documentation sufficient to allow your claim to be adjudicated.

6. Next report and further questions

6.1 We are required to provide a progress report to all creditors within two months of the next anniversary of the Liquidation, or

when the Liquidation comes to an end, whichever is sooner. It is anticipated that the Liquidation will come to an end towards the

third quarter of 2018.

Should you have any queries in the meantime please do not hesitate to contact Stelios Joannides on 020 3727 5611 or by email at

[email protected].

For and on behalf of the Company

Lisa Rickelton

Joint Liquidator

Lisa Rickelton and Andrew Johnson are licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in

England and Wales, under section 390A(2)(a) of the Insolvency Act 1986.




Appendix A – Statutory information

Company and Appointment Information

Aviator Airport Services UK Limited

Trading names Aviator Airport Services UK Limited

Registered number 08979599

Registered office C/O FTI Consulting LLP, 200 Aldersgate Street, London EC1A 4HD

Director(s) Mr Jo Alex Tanem

Mr Andreas Vasilaros

Company secretary Cornhill Secretaries Limited

Directors’

shareholdings

Nil

Appointment date 1 December 2016

Appointer Company Creditors

Aviator LGW Limited

Trading names Aviator LGW Limited






Directors’

shareholdings

Nil





Aviator BHX Limited

Trading names Aviator BHX Limited






Directors’

shareholdings

Nil



Aviator NCL Limited

Trading names Aviator NCL Limited






Directors’

shareholdings

Nil



Liquidators’ Information

Liquidator 1 Liquidator 2

Name Lisa Rickelton Andrew Johnson

Address 200 Aldersgate Street, London EC1A 4HD 200 Aldersgate Street, London EC1A 4HD

Authorising body ICAEW ICAEW

The centre of main interest of the Company is England. Therefore, the EC Regulations on Insolvency Proceedings 2000 apply to the

Liquidation. The proceedings are main proceedings as defined by Article 3 of those regulations.



Appendix B – Liquidators’ receipts and payments account

Aviator LGW Limited

Joint Liquidators' account of receipts and payments

01 December 2016

£ Statement of Affairs to 30 November

2017 Total

Floating charge receipts

Furniture & Equipment

10,000 5,600 5,600

Book Debts

350,000 376,607 376,607

Pre-appointment VAT Refund

350,000 305,983 305,983

Liquidation Funding

50,000 50,000

Bank Interest Gross

292 292

Staff Retention Trust

130,514 130,514

November Overtime

202,731 202,731

Realisations from Funding Airlines

274,840 274,840

Subtotal 1,346,566 1,346,566

Floating charge payments

Insurance (1,095) (1,095)

Bank Charges

(6) (6)

Postage & Stationery

(813) (813)

November Overtime

(149,345) (149,345)

Specific Bond

(528) (528)

Office Holders Fees

(161,112) (161,112)

Office Holders Expenses

(700) (700)

Employee Related Costs

(8,350) (8,350)

Liquidation Funding to AAS UK

(14,413) (14,413)

Agents/Valuers Fees

(2,405) (2,405)

Payroll Services

(1,833) (1,833)

Statutory Advertising

(248) (248)

Rents Payable

(2,813) (2,813)

Wages & Salaries

(18,174) (18,174)

Employee Arrears / Hol Pay

(55,421) (55,421)

PAYE & NI

(359) (359)

Waste Disposal

(520) (520)

Employee Arrears/Hol Pay

(44,895) (44,895)

Subtotal (463,029) (463,029)

Current Surplus/(Deficit) 883,537 883,537

Represented by

Vat Receivable

129 129

Liquidation Account - FLT

726,471 726,471

LGW - Liquidation Funding Trust Account

35,603 35,603

LGW - Retention Trust Account

121,464 121,464

Vat Payable

(129) (129)

Total Surplus/(Deficit) 883,537 883,537



Aviator BHX Limited


01 December 2016

£ Statement of Affairs to 30 November 2017 Total


Book Debts 130,000 205,336 205,336

Pre-appointment VAT Refund 68,000 97,603 97,603

November Overtime per Trust Account 355,000 355,000

Bank Interest Gross 105 105

Subtotal 658,045 658,045


Bank Charges (78) (78)

Insurance (64) 64

Postage & Stationery (433) (433)

November Overtime per Trust Agreement (13,460) (13,460)

November Overtime Transfer to Group Co's (216,825) (216,825)

Speci fic Bond (528) (528)

Office Holders Fees (28,770) (28,770)

Statutory Advertis ing (248) (248)

PAYE & NI (4,362) (4,362)

Subtotal (264,768) (264,768)


Represented by

Vat Receivable 5,754 5,754

Liquidation Account - FLT 267,132 267,132

BHX - Overtime Trust Account 120,391 120,391




Aviator NCL Limited


01 December 2016

£ Statement of Affairs to 30 November 2017 Total


Book Debts 70,000 390,668 390,668

Pre-appointment VAT Refund 30,000 - -

November Overtime per Trust Account 14,094 14,094

Bank Interest 127 127

Subtotal 404,889 404,889


Insurance (64) (64)

Postage & Stationery (306) (306)

November Overtime per Trust Agreement (10,082) (10,082)

Speci fic Bond (375) (375)

Office Holders Fees (28,770) (28,770)

Statutory Advertis ing (248) (248)

PAYE & NI (4,012) (4,012)

Bank Charges (66) (66)

Subtotal (43,923) (43,923)


Represented by

Liquidation Account - FLT 360,966 360,966






01 December 2016

£ Statement of

Affairs to 30 November

2017 Total


Liquidation Funding from Aviator LGW

14,413 14,413

Subtotal 14,413 14,413


Postage & Stationery

(3) (3)

Specific Bond

(98) (98)

Office Holders Fees

(11,508) (11,508)

Statutory Advertising

(423) (423)

Subtotal (12,032) (12,032)


Represented by

Vat Receivable

2,381 2,381




Task Hrs £'000 Hrs £'000 Hrs £'000 Hrs £'000

Administration and planning 145.2 55.8 25.9 10.0 25.9 10.0 20.2 7.7

Investigations 8.1 3.1 1.4 0.6 1.4 0.6 0.6 0.2

Realisation of assets 20.2 7.7 3.6 1.4 3.6 1.4 0.0 0.0

Trading / wind down 40.3 15.5 7.2 2.8 7.2 2.8 0.0 0.0

Creditors 121.0 46.5 21.6 8.3 21.6 8.3 3.2 1.2

Tax 16.8 6.2 3.0 1.1 3.0 1.1 1.2 0.4

Reporting 40.3 15.5 7.2 2.8 7.2 2.8 2.9 1.1

Other 28.2 10.8 5.0 1.9 5.0 1.9 2.0 0.8

Total Fee Estimate 420.0 161.1 75.0 28.8 75.0 28.8 30.0 11.5

Note: The blended average hourly rate across all workstreams estimated at £384 /hr

Aviator LGW Limited Aviator BHX Limited Aviator NCL Limited Aviator Airport Services UK Limited

Appendix C – Liquidators’ time costs and expenses

Liquidators’ fees

Pursuant to Rule 18.16 (formerly rule 4.127) of the Rules, the remuneration of the Liquidators can be fixed on the basis of one of the

following:

a. as a percentage of the value of property with which he has to deal;

b. by reference to time properly given by the Liquidator and his staff attending to matters arising in the liquidation; or

c. a set amount.

No creditors committee was established by the creditors of the Companies. Consequently, the meeting of creditors of each of the

Companies dated 12 December 2016 voted that the remuneration of the Liquidators be fixed on the basis of time costs properly

incurred in carrying out the liquidation, in accordance with Rule 18.16(2)(b) (formerly rule 4.127(6)) of the Rules.

For reference, a breakdown of the Liquidators’ fee estimate provided to the creditors prior to the meeting of creditors of each of the

Companies dated 12 December 2016 is provided below.

A copy of the 'Creditors' Guide to Liquidators' Fees' is available at:

http://www.fticonsulting-emea.com/~/media/Files/emea--files/creditors-portal/cip-emea-forms-info/guide-to-liquidators-fees-oct-

2015-ew.pdf

Creditors can alternatively request a copy from us and we will provide a paper copy by post.

Revised Liquidators’ Fee Estimate for creditors approval

Pursuant to Rule 18.24 of the Rules the Liquidators are seeking approval from creditors to increase their fee estimate. The revised fee

estimate is provided below.





The revised Liquidators’ fee estimate represents a £100k increase in respect of LGW, and a £25k increase in respect of BHX and NCL.

The table above also provides a summary of the Liquidators’ unbilled WIP to date and the requested uplift in the Liquidators’ fee

estimate. The uplift in the Liquidators’ fee estimate principally relates to the additional time costs incurred in relation to trade debtors

realisations and in dealing with greater than anticipated employee issues / matters as outlined above.

As you will note below, the Liquidators are not seeking approval to draw all unbilled fees. It is estimated that the total write off will be

£299k.

A summary of the additional work undertaken by the Liquidators and the rationale behind why an increase in the Liquidators fee

estimate is being sought is detailed below.

Asset realisations

Trade debtors

The liquidators have incurred additional time costs in respect of asset realisation activities, principally relating to the realisation of

trade debtors. The additional work carried out by the Liquidators and their staff has significantly improved trade debtor realisations in

respect of LGW, BHX and NCL, having realised £972k to date across the three estates, representing c.£422k of additional recoveries as

compared to the directors’ estimate as outline in their statement of affairs. Please refer to paragraph 1.16 of this report for a detailed

analysis by entity.

The additional realisations have been achieved through the Liquidators and their teams efforts to:

Deal with trade debtors directly rather than utilising a third party agent to ensure the liquidators retain maximum control over the debtor recovery process. Given the Companies debtor ledgers were fairly concentrated and the Liquidators fully utilised the accounts receivable staff during the liquidation;

Robustly negotiate with customers and ensure all necessary information was recovered from the Companies’ records and provided to customers to minimize scope for set off against monies due;

Review Company data to identify additional debtors not included in the Companies’ debtors ledger as at the date of the liquidators’ appointment.

Funding stakeholders

Following a detailed review of the Companies’ accounts, the Liquidators identified certain funding stakeholders whereby the value of

the services rendered to them by the Companies in the period prior to the liquidation exceeded the value of the contributions made in

accordance with the emergency short term funding agreement to provide emergency funding. The additional time spend on this

matter by the liquidators has ensured that the funding deficit, totalling £401k (£322k LGW and £79k BHX), has been recovered in full

into the liquidation estates.

Employee matters

The original fee estimate was prepared on the basis that all employee records were brought up to date and that the majority of payroll

queries would be dealt with in the initial stages of the Liquidators’ appointments when the Companies’ payroll staff were available to

directly assist the Liquidators.

However, owing to the significant number of payroll queries, the quality of the employee data held and the payroll staff only being

available for c.2 weeks post appointment, the liquidators have incurred significantly greater time costs in dealing with employee

matters, noting in particular:

Pay discrepancies and the payment of November 2016 overtime We understand that, as part of the wind down process and prior to our appointment, additional emphasis was placed by the Companies on ensuring the payroll data was as accurate as possible and that, to the extent possible, all overtime was appropriately authorised to help minimise payroll issues and queries. As such, according to the records provided to the Liquidators and following the payroll payments made on 30 November 2016 and 16 December 2016, no arrears of wages would be owing to employees. Despite these best endeavours, a number of employees expressed that they were paid an incorrect amount in the November 2016 payroll (covering November basic pay and October overtime) and/or December 2016 payroll, (covering November overtime only) specifically in regards to overtime.



The Liquidators incurred additional time costs investigating this matter thoroughly in order to fulfill the terms of the Trust accounts set up in accordance with the short term funding agreement and to ensure the correct adjudication of employee creditor claims.

Employee reference requests

Additional time required to check and reconcile employee data for the purposes of providing up to date employee reference information. During the Period we have received and processed 425 reference requests.

An analysis of our time in accordance with the provisions of SIP9, which provides details of the activity costs incurred by staff grade to the above date is enclosed overleaf. Our work during the Period comprises:

Work stream Activities Rationale

Administration and planning Appointment and related formalities.

Cashiering and reconciliation of bank accounts.

Set up and maintenance of case files.

Statutory and compliance requirements.

Investigations Reports of directors’ conduct.

Statutory requirement to report on director conduct.

Realisation of assets (LGW, BHX and NCL)

Collection of book debts and the realisation of chattel assets.

Maximise the realisations of the liquidation estate.

Trading / wind down Administering the Trust and designated liquidation funding accounts and ensuring correct utilisation of funds held in accordance with relevant Trust arrangements.

Acting in accordance with the relevant Trust arrangements for the benefit of Trust beneficiaries.

Creditors Responding to creditor queries.

Updating creditors on case progression.

Adjudicating on creditor claims.

Responding to employee queries, including reviewing Company data to ensure employee reference requests were correctly actioned.

Agreeing employee claims and making distributions to preferential creditors.

Undertaking a detailed review of the employee records to facilitate payments being made to the Companies’ former employees in accordance with the Trust arrangements set up as part of the emergency short term funding agreement.

Statutory requirement to act in the interests of the Companies’ creditors as a whole and to provide updates to creditors.

Tax / VAT Notifications to relevant tax authorities.

Filing relevant pre and post appointment corporation tax and VAT returns.

Statutory requirement.

Reporting Complying with statutory formalities include relevant filings and statutory communications.

Statutory requirement.



A summary of time costs and expenses incurred and drawn to date, and during the Period is set in appendix D.

Category 1 expenses are not subject to creditor approval. Category 2 disbursements do require approval from creditors and relate to

services provided to us by associated companies and costs which are apportioned overheads such as mileage and data storage. Further

details in relation to this can be found at Appendix D (if applicable) together with additional information in relation to our policy on

staffing, the use of subcontractors, and details of our current charge out rates by staff grade.



Appendix D – Time costs analysis

Task

Managing Director /

Director

Senior Consultant /

Consultant Associate Total Time Total Cost

Administration & Planning

Strategy and planning A1 1.7 - 7.9 9.6 2,872

Initial actions A2 7.2 - - 7.2 4,624

Appointment and related formalities A3 4.0 4.2 0.5 8.7 3,976

Receipts and payments accounts A4 - 26.0 4.7 30.7 12,957

Checklist and reviews A5 34.2 52.3 79.6 166.1 61,370

Cashiering and reconciliations A6 0.2 12.6 25.0 37.8 12,265

Bonding and IPS maintenance A7 - 2.3 - 2.3 1,024

Case admin A8 21.5 20.4 0.7 42.6 20,632

Subtotal 68.8 117.8 118.4 305.0 119,718

Investigations

Directors questionnaire/checklists B2 - 1.2 - 1.2 540

Statement of affairs B3 1.7 - - 1.7 859

Reports of Directors' conduct B4 1.0 - 3.9 4.9 1,554

Books and records B5 - - 0.5 0.5 225

Other investigations B7 0.3 - - 0.3 209

Subtotal 3.0 1.2 4.4 8.6 3,386

Realisation of assets

Cash and investments C1 4.2 - - 4.2 2,141

Book debts C4 26.2 32.5 24.7 83.4 34,991

Property, plant and vehicles C6 1.2 1.9 - 3.1 1,477

Subtotal 31.6 34.4 24.7 90.7 38,609

Trading

Employees - Payroll D4 46.4 - 4.1 50.5 24,864

Employees - recruitment D6 - - 6.1 6.1 1,312

Subtotal 46.4 0.0 4.1 50.5 26,175.00

Creditors (correspondence and claims)

Unsecured creditors E1 10.9 72.2 116.8 199.9 62,934

Secured creditors E2 - - 0.7 0.7 315

Employees E4 7.4 157.5 51.2 216.1 86,852

Lease creditors E7 8.6 - - 8.6 4,419

Subtotal 26.9 229.7 168.7 425.3 154,519

Tax

Pre-appointment CT F2 - 0.6 - 0.6 270

Pre-appointment VAT F3 2.7 - - 2.7 1,380

Post appointment CT F4 - - - - -

Post appointment VAT F5 - - 5.2 5.2 1,118

Subtotal 2.7 0.6 5.2 8.5 2,768

Reporting

Other statutory reports/meetings G3 15.7 12.5 4.3 32.5 14,564

Secured creditor reports G4 - - - - -

Subtotal 18.4 13.1 4.3 32.5 14,564

Please specify H1 9.5 - - 9.5 5,653

Subtotal 9.5 0.0 0.0 9.5 5,653

Total Time by Grade 207.3 396.8 329.8 930.6

Total Cost by Grade 114,025 176,766 74,599 365,390

Average by Grade 550 445 226 393

Time Costs Cat. 1 Expenses Cat. 2 Expenses Total

Total Costs in Period 365,390 700 - 366,089

Amount billed to date (161,112) (700) - (161,812)

WIP 204,278 0.0 - 204,278

Aviator LGW Limited - Liquidators' fees and disbursements for the period 1 December 2016 to 30 November 2017



Task

Managing Director /

Director

Senior Consultant /








Cashiering and reconciliations A6 0.2 - 16.3 16.5 3,879


Case admin A8 16.7 - 0.2 16.9 9,005

Subtotal 51.5 22.4 48.8 122.7 50,774

Investigations





Subtotal 2.4 1.2 2.5 6.1 2,594


Cash and investments C1 1.5 - - 1.5 761.5

Book debts C4 8.9 8.5 17.6 35.0 12,571

Property, plant and vehicles C6 1.2 - - 1.2 630

Subtotal 11.6 8.5 17.6 37.7 13,962

Trading

Employees - Payroll D4 5.0 - - 5.0 2,625

Employees - recruitment D6 - - 3.5 3.5 752.5

Subtotal 5.0 0.0 0.0 5.0 3,378



Employees E4 0.2 - 30.1 30.3 6,611


Subtotal 8.0 2.3 62.6 72.9 18,567

Tax


Pre-appointment VAT F3 0.5 - - 0.5 253


Subtotal 0.5 0.6 5.2 6.3 1,641

Reporting



Subtotal 12.8 3.6 3.0 18.3 8,547

Please specify H1 10.5 - - 10.5 6,248

Subtotal 10.5 0.0 0.0 10.5 6,248





Total Costs in Period 105,708 - - 105,708

Amount billed to date (28,770) - - (28,770)

WIP 76,938 - - 76,938

Aviator BHX Limited - Liquidators' fees and disbursements for the period 1 December 2016 to 30 November 2017



Task

Managing Director /

Director

Senior Consultant /










Case admin A8 13.7 - - 13.7 7,372

Subtotal 30.6 18.5 36.1 85.2 33,665

Investigations





Subtotal 2.2 1.2 2.7 6.1 2,583


Cash and investments C1 0.8 - - 0.8 408

Book debts C4 7.8 7.1 13.9 28.8 10,576

Property, plant and vehicles C6 1.0 10.0 - 11.0 5,025

Subtotal 9.6 17.1 13.9 40.6 16,009

Trading

Employees - Payroll D4 2.5 - - 2.5 1,418

Employees - recruitment D6 - - 0.7 0.7 151

Subtotal 2.5 0.0 0.0 2.5 1,568



Employees E4 0.2 - 25.2 25.4 5,557


Subtotal 5.7 1.1 45.6 52.4 13,198

Tax


Pre-appointment VAT F3 0.7 - - 0.7 354


Subtotal 0.7 0.6 5.2 6.5 1,742

Reporting



Subtotal 11.0 3.6 2.7 16.0 7,402

Please specify H1 9.5 - - 9.5 5,653

Subtotal 9.5 0.0 0.0 9.5 5,653







WIP 53,047 - - 53,047

Aviator NCL Limited - Liquidators' fees and disbursements for the period 1 December 2016 to 30 November 2017



Aviator Airport Services UK Limited - Liquidators' fees and disbursements for the period 1 December 2016 to 30 November 2017

Task

Managing Director /

Director

Senior Consultant /






Receipts and payments accounts A4 - - 0.5 0.5 108



Bonding and IPS maintenance A7 - 1.7 - 1.7 754

Case admin A8 1.2 - - 1.2 714

Subtotal 24.4 6.0 23.3 53.7 22,885

InvestigationsStatement of affairs B3 1.5 - - 1.5 757.5

Reports of Directors' conduct B4 16.1 - 2.0 18.1 9,073 Books and records B5 - - 0.4 0.4 180 Other investigations B7 0.3 - - 0.3 215

Subtotal 17.9 0.0 2.4 20.3 10,225

Realisation of assetsBook debts C4 - 11.3 - 11.3 5,707

Subtotal 0.0 11.3 0.0 11.3 5,707


Unsecured creditors E1 - 4.1 1.3 5.4 2,079

Subtotal 0.0 4.1 1.3 5.4 2,079

Tax

Pre-appointment CT F2 1.0 0.6 - 1.6 935

Subtotal 1.5 0.6 0.0 2.1 1,268

ReportingOther statutory reports/meetings G3 6.0 - 1.3 7.3 3,474

Subtotal 7.5 0.6 1.3 7.3 3,474







WIP 34,129 - - 34,129



Appendix E – Additional Information in relation to Liquidators’ fees pursuant to SIP9

Detailed below is FTI’s policy in relation to:

staff allocation and the use of sub contractors;

professional advisors; and

disbursements.

Staff allocation and the use of subcontractors

Our general approach to resourcing our assignments is to allocate staff with the skills and experience to meet the specific requirements

of the case.

The constitution of the case team will usually consist of a Senior Managing Director, Managing Director, Director, Senior Consultant and

Consultant. The exact constitution of the case team will depend on the anticipated size and complexity of the assignment and on

larger, more complex cases, several Senior Consultants/Consultants may be allocated to meet the demands of the case.

With regard to support staff, we would advise that time spent by cashiers in relation to specific tasks on an assignment is charged.

Only if there is a large block of time incurred by a member of the secretarial team, eg, report compilation and distribution, do we seek

to charge and recover our time in this regard.

Professional advisors

On this assignment we have used or intend to use the professional advisors listed below. We have also indicated alongside, the basis of

our fee arrangement with them, which is subject to review on a regular basis.

Name of professional advisor Basis of fee arrangement £

Postage and fulfilment by Williams Lea Costs incurred based on numbers of letters

printed 1,552

DLA Piper LLP Time costs nil

ERA Solutions Charge based on number of employee claims 8.350

Wyles Hardy Fixed percentage of funds realised 2,405

Our choice was based on our view of their experience and ability to perform this type of work, the complexity and nature of the

assignment and the basis of our fee arrangement with them.

We have may utilise the services of other teams within FTI Consulting LLP to assist with the Liquidation process. The fees of our tax,

strategic communications and forensic technology teams would be included in our SIP9 analysis provided to creditors of the Company

and allocated to the work streams and entities to which their work related, for approval by those parties approving our fees.

We consider that the rates chargeable for these services are in line with general market practice and that the service is comparable to

similar firms of professional advisors. In addition, by working closely with our internal teams, we believe a more coordinated and cost-

effective approach to the Liquidation work streams would be possible.

Disbursements

Category 1 disbursements do not require approval by creditors. The type of disbursements that may be charged as a Category 1

disbursement to a case generally comprise of external supplies of incidental services specifically identifiable to the case, such as

postage, case advertising, invoiced travel and external printing, room hire and document storage. Also chargeable will be any properly

reimbursed expenses incurred by personnel in connection with the case.



Category 2 disbursements do require approval from creditors. These disbursements can include costs incurred which relate to

payments due to associated Company for the provision of services to the office holder. On this assignment we have not yet incurred

any category 2 disbursements.

Type of expense Basis of incurring cost

Postage and fulfilment by Williams Lea Costs incurred based on numbers of letters printed

Mileage 40 pence per mile

IT equipment ordered internally Cost price

Subsistence for meetings Charge based on number of attendees per meeting

Data Management (14 Units) £30 per unit per month

Charge-out rates

A schedule of FTI’s charge-out rates for this assignment is as follows. Please note our minimum time unit is six minutes:

Grade 2016 £ (Per hour) 2017 £ (Per hour)

Senior Managing Director 795 830

Managing Director 695 715

Senior Director 645 660

Director 595 595

Senior Consultant 505 525

Consultant 440 450

Analyst (experienced) 285 295

Analyst (junior) 210 215



Appendix F – Creditors’ statement of claim form

CREDITOR’S STATEMENT OF CLAIM


Aviator LGW Limited

Aviator BHX Limited

Aviator NCL Limited

(Please tick the box corresponding to the company you are making a claim in)

Date of Liquidation – 1 December 2016

Name and address of creditor: ____________________________________

____________________________________

____________________________________

____________________________________

Amount claimed in the Liquidation: (Including VAT) £_______________________ Signature of creditor: ____________________________________

Name of contact: ____________________________________

Telephone: ____________________________________

Fax: ____________________________________

E-mail: ____________________________________

Date: __________/__________/___________

Please provide appropriate documentation in support of your claim. If you are registered for VAT the amount claimed should include VAT even if VAT bad debt relief has been claimed under the Value Added Tax Act 1994.

Please return this form when you have completed it to Stelios Joannides, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD.

Creditors registered for VAT may be able to claim VAT bad debt relief in accordance with Section 36 Value Added Tax Act 1994. In broad terms relief is available when the debt is six months old and "written off" by the creditor entering it on his VAT refunds-for-bad-debts-account.

Claims lodged in the Administration should be gross, including any VAT element. If/when dividends are paid, creditors who have claimed VAT bad debt relief must apportion the dividend between VAT and the net element of their claim and account to HM Customs and Excise for the VAT element through their VAT return. Insolvency Practitioners have no role in administering VAT bad debt relief under the Value Added Tax Act 1994. Creditors who are uncertain how to claim should contact their VAT office or take professional advice.



Appendix G – Statement of Prior Professional Relationship

As you are aware Andrew Johnson and I, both of FTI Consulting LLP (“FTI”) were appointed as the Companies' nominated liquidators (“the Liquidators”)

by resolutions of the members of the Companies on 1 December 2016, in accordance with section 84(1)(b) of the Insolvency Act 1986 (as amended).

This statement sets out the prior professional relationship that the Liquidators have with the Companies.

Lisa Rickelton and Andrew Johnson are Managing Directors at FTI and are licensed in the United Kingdom to act as insolvency practitioners by the

Institute of Chartered Accountants in England and Wales, under section 390(2)(a) of the Insolvency Act 1986.

FTI was engaged by Aviator Airport Services UK Limited and Aviator Airport Alliance AB (as guarantor) on 19 September 2016 to advise and assist them

in the orderly wind down of the UK operations. Specific workstreams included:

review of the Group’s short-term funding requirements to develop and plan for a managed wind-down, or alternative solution to maintain

the UK operation;

provision of insolvency advice to the Board of Directors;

support in discussions and negotiations with key stakeholders;

support in respect of the communications strategy, including development of an appropriate leak strategy; and

preparation of a contingency plan, in the event that it is not possible to secure further funding to allow continuation of trading on a solvent

basis.

The advisory work commenced on 19 September 2016 and continued until 30 November 2016. The total professional fees incurred totalled £1.2 million

(excluding VAT). All fees were paid by the Companies prior to our appointment as Liquidators.

Under the ICAEW Code of Ethics for insolvency practitioners, a potential threat could be considered to exist. This threat is described as a self-review

threat which may occur when a previous judgement made by an individual within the practice needs to be re-evaluated by the Insolvency practitioner.

The necessary safeguards that have been implemented to eliminate / reduce this threat to an acceptable leve, including; a separate lead insolvency

practitioner undertaking the appointment; and, in line with FTI’s internal ethics / risk procedures, consideration and approval from an independent risk

panel. We also note that Companies’ creditors have the opportunity to propose the appointment of alternative insolvency practitioners at the meetings

convened pursuant to s98 of the Insolvency Act 1986.

As Liquidator of the Companies, I confirm that I have fully considered the relevant guide to professional conduct and ethics as issued by our regulatory

body and am satisfied that the existence of this prior professional relationship does not create any conflict of interest or threat to the independence for

the officeholders and consider myself able to accept the appointment.

Signed ……………………………………………………

Lisa Rickelton

Joint Liquidator

Dated …1 December 2016………………………



Appendix H – Notices of decision by correspondence and voting forms

Notice of decisions by correspondence

Aviator LGW Limited - In Creditors’ Voluntary Liquidation

(Company Number 08840120)

Notice is given by Lisa Rickelton and Andrew Johnson to the creditors of Aviator LGW Limited that set out below is a decision for your

consideration under rule 18.24 of The Insolvency (England and Wales) Rules 2016. Please complete the voting section below indicating

whether you are in favour or against the following decision:

1. That a decision is to be sought from creditors to increase the Liquidators’ fee estimate

The final date for votes is 22 February 2018, the decision date.

1. In order for their votes to be counted creditors must submit to me their completed voting form so that it is received at FTI Consulting LLP, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD by no later than 23.59 hours on 22 February 2018. It must be accompanied by proof of their debt, (if not already lodged). Failure to do so will lead to their vote(s) being disregarded.

2. Creditors must lodge proof of their debt (if not already lodged) at the offices of Lisa Rickelton or Andrew Johnson by no later than 23.59 on 22 February 2018, without which their vote will be invalid.

3. Creditors with claims of £1,000 or less must have lodged proof of their debt for their vote to be valid.

4. Any creditors who have previously opted out from receiving documents in respect of the insolvency proceedings are entitled to vote on the decision(s) provided they have lodged proof of their debt.

5. Creditors may, within 5 business days of delivery of this notice to them, request a physical meeting of creditors be held to determine the outcome of the decision(s) above. Any request for a physical meeting must be accompanied by valid proof of their debt (if not already lodged). A meeting will be convened if creditors requesting a meeting represent a minimum of 10% in value or 10% in number of creditors or simply 10 creditors, where “creditors” means “all creditors.”

6. Creditors have the right to appeal the decision made by applying to Court under Rule 15.35 within 21 days of 22 February 2018, the decision date.

Creditors requiring further information regarding the above, should either contact me at 200 Aldersgate, Aldersgate Street, London,

EC1A 4HD, or contact Stelios Joannides by telephone on 020 3727 5611, or by email at [email protected]

DATED THIS 29TH

DAY OF JANUARY 2018

Lisa Rickelton Joint Liquidator




Aviator LGW Limited - In Creditors’ Voluntary Liquidation


Voting on Decisions

1. That a decision is to be sought from creditors to increase the Liquidators’ fee estimate as set out in the report to

creditors dated 29 January 2018

For / Against

TO BE COMPLETED BY CREDITOR WHEN RETURNING FORM:

Name of creditor:_______________________________________________________________

Signature of creditor:______________________________________________________________

(Complete the following if signing on behalf of creditor, e.g. director/solicitor)

Capacity in which

signing document:______________________________________________________

Dated ________________________________________




Aviator BHX Limited - In Creditors’ Voluntary Liquidation





1. That a decision is to be sought from creditors to increase the Liquidators’ fee estimate.







6. Creditors have the right to appeal the decision made by applying to Court under Rule 15.35 within 21 days of 22 February 2018, the decision date.



DATED THIS 29TH

DAY OF JANUARY 2017





Aviator BHX Limited - In Creditors’ Voluntary Liquidation


Voting on Decisions



For / Against


Name of creditor:______________________________________________________________

Signature of creditor:___________________________________________________________


Capacity in which


Dated ________________________________________




Aviator NCL Limited - In Creditors’ Voluntary Liquidation





1. That a decision is to be sought from creditors to increase the Liquidators’ fee estimate.







6. Creditors have the right to appeal the decision made by applying to Court under Rule 15.35 within 21 days of 22 February

2018, the decision date.



DATED THIS 29TH

DAY OF JANUARY 2017





Aviator NCL Limited - In Creditors’ Voluntary Liquidation


Voting on Decisions



For / Against


Name of creditor:_______________________________________________________________

Signature of creditor:_____________________________________________________________


Capacity in which


Dated ________________________________________



Appendix I – Extracts from the Rules

Creditors’ and members’ requests for further information in administration, winding up and bankruptcy

18.9 —(1) The following may make a written request to the office-holder for further information about remuneration or expenses

(other than pre-administration costs in an administration) set out in a progress report under rule 18.4(1) (b), (c) or (d) or a final report

under rule 18.14—

a) a secured creditor;

b) an unsecured creditor with the concurrence of at least 5% in value of the unsecured creditors (including the creditor in question);

c) members of the company in a members’ voluntary winding up with at least 5% of the total voting rights of all the members having the right to vote at general meetings of the company;

d) any unsecured creditor with the permission of the court; or

e) any member of the company in a members’ voluntary winding up with the permission of the court.

(2) A request, or an application to the court for permission, by such a person or persons must be made or filed with the court (as

applicable) within 21 days of receipt of the report by the person, or by the last of them in the case of an application by more than one

member or creditor.

(3) The office-holder must, within 14 days of receipt of such a request respond to the person or persons who requested the information

by—

a) providing all of the information requested;

b) providing some of the information requested; or

c) declining to provide the information requested.

(4) The office-holder may respond by providing only some of the information requested or decline to provide the information if—

a) the time or cost of preparation of the information would be excessive; or

b) disclosure of the information would be prejudicial to the conduct of the proceedings;

c) disclosure of the information might reasonably be expected to lead to violence against any person; or

d) the office-holder is subject to an obligation of confidentiality in relation to the information.

(5) An office-holder who does not provide all the information or declines to provide the information must inform the person or persons

who requested the information of the reasons for so doing.

(6) A creditor, and a member of the company in a members’ voluntary winding up, who need not be the same as the creditor or

members who requested the information, may apply to the court within 21 days of—

e) the office-holder giving reasons for not providing all of the information requested; or

f) the expiry of the 14 days within which an office-holder must respond to a request.

(7) The court may make such order as it thinks just on an application under paragraph (6).

Remuneration and expenses: application to court by a creditor or member on grounds that remuneration or expenses are excessive

18.34.—(1) This rule applies to an application in an administration, a winding-up or a bankruptcy made by a person mentioned in

paragraph (2) on the grounds that—

a) the remuneration charged by the office-holder is in all the circumstances excessive;

b) the basis fixed for the office-holder’s remuneration under rules 18.16, 18.18, 18.19, 18.20 and 18.21 (as applicable) is inappropriate; or

c) the expenses incurred by the office-holder are in all the circumstances excessive.



(2) The following may make such an application for one or more of the orders set out in rule 18.36 or 18.37 as applicable—

a) a secured creditor,

b) an unsecured creditor with either—

i) the concurrence of at least 10% in value of the unsecured creditors (including that creditor), or

ii) the permission of the court, or

c) in a members’ voluntary winding up—

i) members of the company with at least 10% of the total voting rights of all the members having the right to vote at

general meetings of the company, or

ii) a member of the company with the permission of the court.

(3) The application by a creditor or member must be made no later than eight weeks after receipt by the applicant of the progress

report under rule 18.3, or final report or account under rule 18.14 which first reports the charging of the remuneration or the incurring

of the expenses in question (“the relevant report”).




020 3727 5611

[email protected]

About FTI Consulting

FTI Consulting, LLP. is a global business advisory firm dedicated to helping organisations protect and enhance enterprise

value in an increasingly complex legal, regulatory and economic environment. FTI Consulting professionals, who are

located in all major business centers throughout the world, work closely with clients to anticipate, illuminate and

overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory

issues, reputation management and restructuring.

www.fticonsulting.com ©2014 FTI Consulting, LLP. All rights reserved.

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