Swallows wound up

Dont wade through this report looking for signs of a rescue at Swallows, the company is being wound up and not put into administration. Swallows is insolvent, has bills owing to the trade of many thousands of pounds and has two of thje four directors (Lorraine and Peter Bird now seperated from each other) with no interest in trying to turn the company around.

A creditors meeting will be called in January. Before that theres likely to be a closing-down sale.

Heres the insolvency practitioners first thoughts on the winding up of Swallow:

REPORT

Minutes of a meeting of the directors of Swallow Tandems Ltd held at The Old Bakery, Market Street, Llanrhaeadr ym Mochnant, Oswestry, Shropshire SY10 0JN on 17th December 1999 at 12 noon.

Present P D Bird

L C Bird

A J Leopard and A D H Davis in attendance

1 In view of the state of the business a discussion was held as to the best way forward. The company was clearly insolvent and it appeared that the amount owing to creditors and there being no wish to continue the business meant that an administration was not a feasible option. Mr Leopard considered that HSBC would not be interested in appointing a receiver and indeed he had attempted to contact the bank without success. It therefore appeared that the only way forward would be to wind up the company.

2 Accordingly it was resolved that a meeting of the shareholders be called for Thursday the 20th January 2000 at 11.00am for the purposes of considering the following resolution:-

That it has been proved to the satisfaction of the meeting that the company cannot, by reason of its liabilities, continue its business and that it is advisable to wind up the same and accordingly that the company be wound up voluntarily and that Adrian John Leopard FCA FCCA of 51 Gungrog Hill, Welshpool, Powys SY21 7UL be and he is hereby appointed liquidator for the purposes of such winding up.

3 It was resolved that all monies receivable by the company be paid to Adrian Leopard & Co Client Account and that any purchases made should be paid for. Mr Peter Bird asked Mr Leopard if it was in order to have a closing down sale and Mr Leopard advised that provided that the realisations would exceed what an agent might be able to obtain, then this would be a good idea. It was agreed that Mr Davis would attend on the day of the sale to assist.

4 It was also resolved that Adrian Leopard and Co be instructed to carry out the necessary work to call and hold a creditors meeting and also to prepare the necessary statement of affairs. In addition Adrian Leopard & Co was to be instructed to supervise the company’s activities pending the commencement of winding up. It was agreed that Adrian Leopard & Co should be authorised to draw their fees and costs out of the assets in their possession prior to the commencement of winding up.

5 It was resolved that Mr P D Bird be appointed the director to act as chairman of the creditors meeting pursuant to section 99(1)(c) of the Insolvency Act 1986.

6 Mr Davis advised the directors that in no circumstances should any creditor now be preferred, nor should any funds be paid into the company account at HSBC at The Cross, Oswestry, Shropshire.

There being no further business the meeting was closed.

Signed:

Chairman