KPMG has applied to extend the administration period for collapsed Manchester firm Cobbetts by six months, a report by KPMG reveals.
The administration was scheduled to automatically end on 5 February 2014 unless the joint administrators could not complete their objectives.
The filing, published today (22 January 2014), reveals that the joint administrators’ have requested for an extension to the administration for a period of six months “to faciliate realisation of the remaining assets of the LLP and to carry out an orderly exit from the administration”.
“The purpose of the administration is to achieve a better result for the company’s creditors as a whole than would be likely if the company were to be wound up,” the filing continues.
The KPMG team manages the payment of distributions to creditors and in its report states that any preferential creditors will be repaid in full “with sufficient funds available to make a distributuion to the unsecured creditors”.
The filing confirms the pre-pack deal’s consideration of £3.91m, comprising £3.88m related to net debtors and work in progress, £30,000 for unencumbered office furniture and equipment and £1 each for seven asset types including stock, goodwill and IP.
Of this amount, £3.88m had been received at the time the report was published.
The KPMG administrators incurred fees of £226,324 to 13 December for 626 hours at an average rate of £361 per hour. Total time costs incurred during its appointment now total £843,967, representing 2,502 hours at an average rate of £337 per hour.
Cobbetts went into administration in February 2013 with the bulk of its business taken over by DWF in a pre-pack deal (6 February 2013).