Liquidation Liverpool

During a liquidation the priority is as follows:

Expenses of the liquidation - there's also a group order of priority for paying these. The expenses embody:

• expenses properly incurred in preserving, realising or obtaining within the assets of the company;
• fees and remuneration payable to the official receiver and the Secretary of State. The liquidator has to pay all cash realised into a bank account held at the Bank of England known as the Insolvency Services Account. A fee called the Secretary of State fee (generally additionally called the "ad valorem" fee) is calculated as a percentage of the money paid in to the account;
• the costs of the petitioner;
• any necessary disbursements created by the liquidator;
• the payment of a person used by the liquidator to perform services within the liquidation as needed underneath insolvency law;
• the payment of the liquidator; and
• capital gains tax due on any will increase in the worth of assets since the date of the winding-up order.

Claims of preferential creditors - these are outlined in insolvency law, and embody, subject to limits, claims by employees for unpaid wages and holiday pay and sure contributions to occupational pension schemes. These are the primary creditors to induce paid. If not enough money is realised to pay them in full, the cash that is realised is paid to them in proportion to the amount they're owed.

Floating charge - In preference to, or furthermore, having a mortgage or charge over a particular asset(s) of the company, a creditor might have a mortgage or charge over the assets of the corporate generally. This is called a "floating charge". From the proceeds of assets subject to a floating charge, preferential creditors will be paid 1st (to the extent that they need not already been paid from the corporate's general assets that are not subject to the charge) Where the charge was created on or when fifteen September 2003, half of the proceeds from the sale of these assets will be put aside for distribution to unsecured creditors. Any surplus will be paid to the secured creditor holding the floating charge.

Debts that are neither preferential nor postponed (see below) - these are the debts to unsecured creditors, who will include trade and expense creditors. They can be paid if there is a surplus when paying the preferential creditors in full and any secured creditor holding a floating charge. If not enough money is realised to pay the unsecured creditors in full, the money that is realised is paid to them in proportion to the quantity they're owed - this is often described as a dividend of pence within the £, where 100p within the £ equals payment in full.

Interest on debts - if the debts of the preferential and unsecured creditors are paid in full, then they are entitled to interest on their debts from the date of the winding-up order. The speed of interest paid is that the greater of: the statutory rate of interest at the date of the winding-up order, and the rate of interest the company would have had to pay if it weren't in liquidation. Since 1 April 1993, statutory interest has been 8percent. Claims of postponed creditors - these are defined in insolvency law, and embody sure claims where the company has been carrying on unauthorised investment or banking business.

Information: http://www.bis.gov.uk/assets/bispartners/insolvency/docs/publication-pdfs/trusteesandliquidators.pdf






8

Surplus - if there's a surplus after paying in full all the expenses of the liquidation, all debts of the corporate, and interest on the debts, then this cash is distributed to the shareholders of the company.
Secured creditors - if a creditor holds a mortgage or charge over a selected asset(s) of the corporate, then if that asset(s) is sold the secured creditor receives the proceeds. If the debt owed to the secured creditor is paid in full from the proceeds, the liquidator can receive the surplus and distribute it first to preferential creditors and then, if there's still a surplus, to unsecured creditors.

If the debt owed is not paid in full, the balance is an unsecured debt in the liquidation.

seven. Completion of the administration by a trustee or liquidator

When a trustee or liquidator has realised and distributed all the assets, they can prepare a final meeting of creditors. They will send notice of this meeting to all or any creditors they're conscious of. At this meeting, the trustee or liquidator will report on what they did throughout the bankruptcy or liquidation and will provide creditors a summary of their receipts and payments. The trustee or liquidator can conjointly ask for their unleash from workplace. The creditors have a right to object to the discharge of the trustee or liquidator.

8. Alternative matters

If you are the bankrupt or company officer (both current and former):

You've got a obligation to co-operate with the trustee or liquidator. This can be additionally to your duty to co-operate with the official receiver. A trustee must provide info regarding time spent administering the  bankruptcy to a bankrupt who requests such information throughout the bankruptcy and up to two years once the trustee has left office.

If you are a director or contributory:

The liquidator must provide their most up-to-date receipts and payments account to any director or contributory of the company who requests one during the course of the liquidation, and should also offer data regarding time spent administering the liquidation for up to 2 years after they need left office.

If you are a creditor:

A trustee or liquidator is not required to send regular reports to creditors, though they need to keep the creditors' or liquidation committee regularly informed (see section four). A trustee or liquidator should give a duplicate of their most recent receipts and payments account to any creditor who requests one during the bankruptcy or liquidation, and must conjointly provide info about time spent administering the bankruptcy or liquidation for up to a pair of years once they need left workplace.

nine. How do I complain concerning the actions of a trustee or liquidator?

Bankruptcy and compulsory liquidation (winding-up) are court procedures, thus a trustee or liquidator is subject to the control of the court. The Insolvency Act 1986 allows bankrupts, creditors, directors or contributories to raise the court to intervene, and provides the court wide-ranging powers. If you wish to complain concerning an insolvency practitioner's unprofessional conduct, you must contact their authorising body. You will get details of a practitioner's authorising body through 'realize an IP' on our web site www.insolvency.gov.uk or by telephoning The 9 Insolvency Service Central Enquiry Line on 020 7291 6895 or emailing Central.Enquiryline@insolvency.gsi.gov.uk

The Insolvency Service publishes a leaflet "How to create a criticism against an IP" giving general guidance on making a complaint. The authorising bodies every have publications that justify how their  complaints procedures work. The authorising bodies cannot settle disputes in individual cases, and disciplinary procedures ought to not be regarded as an alternative to asking the court to intervene. For
example, an authorising body cannot decide the number to be paid to a trustee or liquidator, or settle a dispute where the trustee or liquidator does not accept a symbol of debt sent in by a creditor; these are matters for the court.

Before complaining to the trustee or liquidator's authorising body, or applying to court, you must write or speak to the insolvency practitioner to try and resolve the difficulty.

Appendix one - Alternative Insolvency Service publications

The Insolvency Service publishes several other publications that may be of use.
A Guide for Creditors
A Guide for Administrators to Compulsory Liquidation
Guide to Bankruptcy
What can happen to my home?
What can happen to my pension?
What can happen to my checking account?
What happens when you are interviewed by the Official Receiver?
Bankruptcy Restriction Orders
When can my bankruptcy end?
Will my bankruptcy be cancelled?
Fast-Track Voluntary Arrangements

You will get more copies of this booklet from The Insolvency Service website:
www.insolvency.gov.uk

You'll conjointly, free of charge, order copies of our publications from the DTI Publications Orderline. To try to to this you'll would like the reference range (URN) of the forms you need. You can find this on the rear cover of the leaflets or on the web site. By phonephone: 0845 015 0010 (calls to this number are charged at national rate). By email: publications@dti.gsi.gov.uk
By fax: 0845 015 0020

Information: http://www.bis.gov.uk/assets/bispartners/insolvency/docs/publication-pdfs/trusteesandliquidators.pdf

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Liquidation Glasgow

5.

Where the trustee or liquidator seeks agreement to their fees during the course of a bankruptcy or liquidation they must provide the committee, or the creditors, enough information to enable them to guage whether or not the proposed payment is reasonable, having regard to all or any the circumstances. This ought to include explaining what has been done throughout the bankruptcy or liquidation, the grade of staff operating on the case and their hourly rate. Statement of Insolvency Observe nine (SIP9: Remuneration of insolvency office holders) sets out a format the trustee or liquidator will use when providing the knowledge.

The trustee or liquidator ought to also provide creditors a guide explaining their rights to approve and monitor payments to the trustee or liquidator. The guide can embody, among alternative things:

• information regarding the creditors' or liquidation committee;
• an outline of the procedure for agreeing a trustee or liquidator's payment;
• information that should be provided to creditors after they are asked to agree the fees of a trustee or liquidator;
• what to do if the creditors are dissatisfied; and
• what the trustee or liquidator will do if he or she is dissatisfied.

Where the idea of the payment to the trustee or liquidator has been fastened before they need completed the most part of their work, the trustee or liquidator ought to specify the quantity of remuneration already drawn once they report to the creditors on their progress or submit their final report.

If the premise on that a trustee or liquidator is to be paid is not agreed by a creditors' or liquidation committee or at a meeting of creditors, then the trustee or liquidator will be paid per the statutory scale shown below:

• The realisation scale
On the primary £five,000 or part of it twentypercent
On the following £5,00zero or part of it 15percent
On the subsequent £ninety,00zero or part of it 10%
On all additional sums realised 5%
• The distribution scale
On the first £5,00zero or part of it 10%
On the subsequent £5,00zero or part of it seven.5p.c
On the subsequent £ninety,00zero or half of it five%
On all more sums distributed two.5%

If a creditor considers that the quantity paid to a trustee or liquidator is too high, then they'll apply to court for an order to own it reduced. A creditor can solely apply for this if they need the support of at least 25percent in value of the unsecured creditors. If a trustee or liquidator considers that the quantity they are paid is too low, they can raise the creditors to increase it or apply to court for an order to possess it increased, or each.

Payment of the expenses and disbursements of a trustee or liquidator does not would like approval by the creditors' or liquidation committee, or the creditors. Agents' fees for selling assets, and statutory advertisements, are examples of expenses and disbursements. However, if the trustee or liquidator is creating, or intends to make, a separate charge within the bankruptcy or liquidation for expenses and disbursements to recover the price of using their firm's facilities (noted in SIP9 as category a pair of disbursements) - as an example, photocopying, postage or storage charges - then they ought to disclose those charges to the committee or the creditors, and ask for approval of them, six when seeking approval of their fees. They must additionally explain how these fees and disbursements arise and are calculated.

half dozen. Payments to creditors

When realising the assets of a bankrupt or company, a trustee or liquidator can distribute the money raised. This distribution is created in accordance with an order of priority commenced in insolvency law.

During a bankruptcy, the priority is as follows:

Expenses of the bankruptcy - there's also a set order of priority for paying these. The expenses embody:

• expenses properly incurred in preserving, realising or getting in the assets of the bankrupt;
• fees and remuneration payable to the official receiver and the Secretary of State. The trustee must pay all cash realised into a checking account held at the Bank of England called the Insolvency Services Account. A fee, called the Secretary of State fee (sometimes conjointly known as an "ad valorem" fee), is calculated as a share of the money paid into the account;
• the costs of the petitioner;
• any necessary disbursements created by the trustee;
• the payment of anyone utilized by the trustee to perform services in the bankruptcy as required underneath insolvency law;
• the payment of the trustee; and
• capital gains tax due on any increases in the price of assets since the date of the bankruptcy order.

Claims of preferential creditors - these are outlined in insolvency law, and embody, subject to limits, claims by workers for unpaid wages and holiday pay and certain contributions to occupational pension schemes. These are the first creditors to urge paid. If insufficient money is realised to pay them in full, the cash that is realised is paid to them in proportion to the amount they are owed.

Debts that are neither preferential nor postponed (see below) - these are typically referred to as debts of unsecured creditors, who can embrace trade and expense creditors. If insufficient money is realised to pay them in full, the cash that's realised is paid to them in proportion to the quantity they're owed. This can be described as a dividend of pence in the £, where 100p within the £ equals payment in full.

Interest on debts - if the debts of the preferential and unsecured creditors are paid in full, then they're entitled to interest on their debts from the date of the bankruptcy order. The rate of interest paid is that the greater of: the statutory rate of interest at the date of the bankruptcy order, and the rate of interest the bankrupt would have had to pay if they'd not been created bankrupt.

Since one April 1993 the statutory rate of interest has been 8percent. Debts to postponed creditors - these are outlined in insolvency law, and embody money owed to a person who was the spouse of the bankrupt at the date of the bankruptcy order. Surplus - if there is a surplus after paying in full all the expenses of the bankruptcy, all debts of the bankrupt and interest on the debts, then this money is came to the bankrupt.

Secured creditors - if a creditor holds a mortgage or charge over an asset of the bankrupt, then if that asset is sold the secured creditor receives the proceeds. If the debt owed to the secured seven 
creditor is paid in full from the proceeds, the trustee will receive the bankrupt's share of that surplus. Examples of secured creditors can be a bank or building society holding a life policy or a mortgage over a house. If the debt owed isn't paid in full, the balance is an unsecured debt in the bankruptcy.

Information: http://www.bis.gov.uk/assets/bispartners/insolvency/docs/publication-pdfs/trusteesandliquidators.pdf
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Liquidation Birmingham

4. Powers of a trustee or liquidator

A creditors' or liquidation committee will be appointed at a gathering of creditors, and consists of at least 3 and no more than 5 elected creditors or their representatives. The committee's purpose is to guard and promote the interests of the creditors and, where acceptable, the shareholders. The committee can meet to consider the overall progress of the bankruptcy or liquidation, and any matters that are of interest to the committee. The trustee or liquidator should write a report for the committee at least once every six months, or a lot of typically if required by the committee, however not more often than once each 2 months. The trustee or liquidator should keep separate financial records for each bankruptcy or liquidation, and these are open to inspection by the committee.

The committee additionally controls the costs and expenses of the bankruptcy or liquidation, and this is often controlled below in section five. The powers of a trustee or liquidator are embarked on within the Insolvency Act 1986, the Insolvency Rules 1986 and also the Insolvency Regulations 1994. Some of these powers will only be used with the permission of the creditors' or liquidation committee or the court, whereas others will be used
while not permission. Examples of the powers that can solely be used with the permission of the committee or the court are:

• the ability to carry on the business of the bankrupt or company therefore so much as may be necessary for
• the good thing about the creditors;
• the facility to bring or defend legal actions regarding the property of the bankrupt or company;
• the power to come to a compromise with creditors of the bankrupt or company about their debts;
• the facility to sell the property of the bankrupt for a total of cash payable in the longer term; and
• the ability to mortgage the property of the bankrupt to raise money to pay the bankrupt's debts.

4

The trustee or liquidator must tell the committee once they use a solicitor to help them, or if they dispose of any property of the bankrupt or company to an individual connected with that bankrupt or company. However, they do not want the committee's permission. If the trustee or liquidator has done something for which they require the committee's permission however did not get it beforehand, the committee could still approve what has been done. The committee ought to solely approve if they're satisfied that the trustee or liquidator had to act as a matter of urgency and has since sought their approval without undue delay.

If no committee is appointed, then the Secretary of State acts as the committee (in follow this can be the Insolvency Practitioner Unit of the Insolvency Service, acting on behalf of the Secretary of State). The trustee or liquidator then desires the permission of the Secretary of State or the court to use these powers.

Some of the powers of the trustee or liquidator will be used while not the necessity to urge permission.

Examples of these are:

• the power to sell the property of the bankrupt or company (as long as it's not for a total of money payable in the longer term);
• the power to act and to sign documents in the name and on behalf of the bankrupt or company;
• the facility to use an agent; and
• the power to try and do all other things necessary for concluding the affairs of the bankrupt or company.

five. Payment of a trustee or liquidator

A trustee or liquidator is entitled to be purchased the work they are doing. The number they are paid will be calculated:

• as a percentage of the value of the assets realised or distributed (or both); or
• on a time-and-rate basis - where an hourly rate is charged for the time spent on dealing with the bankruptcy or liquidation.

If a creditors' or liquidation committee has been appointed, the committee should settle on which basis the payment to the trustee or liquidator is to be calculated and, where necessary, the percentage to be used. If there's no committee, then the basis on that the trustee or liquidator is to be paid, and also the quantity they're to be paid, can be agreed at a gathering of creditors. When fixing the premise of the trustee's or liquidator's remuneration, the creditors must have regard to the subsequent:

• the complexity (or otherwise) of the case;
• any exceptional kind or degree of responsibility that falls on the trustee or liquidator in connection with the bankruptcy or liquidation;
• how effectively the trustee or liquidator appears to be polishing off, or to have meted out, their duties;
• the worth and nature of the assets that the trustee or liquidator has to deal with.

If payment is agreed on a time-and-rate basis, the trustee or liquidator is paid in step with the quantity of hours they and their employees have spent operating on the bankruptcy or liquidation. The hourly rate paid is set by the trustee or liquidator.

Information: http://www.bis.gov.uk/assets/bispartners/insolvency/docs/publication-pdfs/trusteesandliquidators.pdf

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Liquidation London

3. Functions of a trustee or liquidator

The most operate of the trustee or liquidator is to realise and distribute the assets of the bankruptcy estate or company. The trustee or liquidator encompasses a duty to the creditors to get rid of the assets - subject to exemptions (see below) - of the bankruptcy estate or company for the simplest potential price. The aim is to enable the creditors to receive as massive a share of the assets as 3 doable when the fees, costs and expenses of the bankruptcy or liquidation are paid (see "Payments to creditors" for details of the order of distribution).

A trustee or liquidator could apply to court for an order restoring property which a bankrupt or company has disposed of in a very way that's unfair to their creditors (as an example if, before bankruptcy, a property had been transferred to a relative of the bankrupt for less than its full price).

In sure circumstances, a liquidator could additionally take action within the court against the administrators or former directors personally for the good thing about creditors of the company (for instance, for wrongful trading). A trustee may claim property obtained by a bankrupt throughout the bankruptcy. The trustee may also ask the bankrupt to pay, for up to 3 years, part of their wages, salary or other income to the trustee, or raise the court to get them organized to try and do therefore, if that income is more than the bankrupt and their family would like to live on while they're bankrupt.

A bankrupt's estate can not embody the following items, but the trustee can claim, sell and replace an item if the individual value is additional than the value of a reasonable replacement:
• tools, books, vehicles and other items of apparatus that a bankrupt desires to use personally in their employment, business or vocation;
• clothing, bedding, furniture and household equipment necessary for the fundamental domestic desires of the bankrupt and their family.

Information: http://www.bis.gov.uk/assets/bispartners/insolvency/docs/publication-pdfs/trusteesandliquidators.pdf
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Hotel Furniture Liquidators

1. Purpose of this guide

This guide summarises the functions and powers of a non-public sector insolvency practitioner who is appointed as:
• trustee of a bankrupt; or
• liquidator of a company in compulsory liquidation.

It additionally summarises how the practitioner is paid. Even though a personal sector insolvency practitioner may be appointed, the official receiver remains accountable for investigating the affairs of the bankrupt or company. If you've got any queries or information that may assist these investigations, please send them to the official receiver managing the case.

two. Appointment of an insolvency practitioner as trustee or liquidator

Only authorised persons could act as insolvency practitioners, and solely an insolvency practitioner can be appointed as trustee or liquidator as opposed to the official receiver.

The role of a trustee or liquidator is to understand the assets and make payments to creditors. The official receiver could act where the realisation of assets is simple. However, in most cases where the realisation is probably to be complex, the official receiver can look for to appoint a personal sector insolvency practitioner to act as trustee or liquidator, unless the court has already appointed one.

The insolvency practitioner will be appointed at a gathering of creditors or beneath powers given to the Secretary of State for Trade and Industry within the Insolvency Act 1986, usually at the request of, or in consultation with, the main creditor(s).

An insolvency practitioner can sometimes be appointed as trustee or liquidator inside four months of the bankruptcy or winding-up order being made. Within the meantime the official receiver can act as receiver and manager of the bankrupt's estate or as liquidator of the company, and can collect or defend the assets. An insolvency practitioner might be appointed later if, for instance, assets come to light or, within the case of a bankruptcy, when assets have been acquired since the date of the bankruptcy order or have increased in worth (e.g. an increase in house costs giving equity in an exceedingly property). A trustee can be appointed even when the bankrupt has obtained their discharge from bankruptcy if there are still assets within the bankruptcy to be addressed.

The official receiver can notify the bankrupt if an insolvency practitioner is appointed to deal with their affairs, however will not sometimes send a separate notification to creditors. An insolvency practitioner who is appointed trustee or liquidator at a gathering of creditors must advertise their appointment in an exceedingly newspaper where the advertisement is most likely to return to the attention of the creditors. If the insolvency practitioner is appointed trustee or liquidator by the Secretary of State, they have to offer notice to the creditors individually or, if the court permits, by a poster.

Information: http://www.bis.gov.uk/assets/bispartners/insolvency/docs/publication-pdfs/trusteesandliquidators.pdf
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Voluntary Liquidation

Voluntary Liquidation

Non-technical outline

Creditors’ voluntary liquidation occurs where the shareholders, sometimes at the directors’ request, decide to place an organization into liquidation as a result of it's insolvent.

A licensed insolvency practitioner has given you this because you, or your business, may be owed cash by a corporation that's in creditors’ voluntary liquidation.

This guide aims to help you understand your rights as a creditor and to describe how best these rights will be exercised. It's meant to relate only to England and Wales. It is not an exhaustive statement of the relevant law or an alternative choice to specific skilled or legal recommendation.

We have made each effort to make sure that the guide is accurate, however we cannot settle for responsibility for the consequences of any action you take in reliance on its contents. If, having read the guide, you remain in any doubt regarding your rights, you must consult a licensed insolvency practitioner or a solicitor.

Depending on the circumstances of the case, creditors who play an energetic role in an insolvency will build a significant difference to how abundant the insolvency practitioner can be in a position to recover for them. We hope that you may browse this guide fastidiously and think about whether taking an active role as a creditor in this case may profit you or your customer.
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Liquidity Definition

Liquididty Definition

Non-technical outline

Financial liquidity is an elusive notion, nonetheless of paramount importance for the well-functioning of the Financial system. In fact, the events in Financial markets since August 2007 bear all the hallmarks of increased funding liquidity risk, however conjointly reveal how this kind of risk will contaminate market liquidity and necessitate reactions from central banks. This project combines literature on liquidity from varied Fields of research during a schematic and holistic manner in order to provide a uniFied and consistent account of Financial system liquidity and liquidity risk. The outcome of this e¤ort reveals the subsequent:

Three main liquidity notions, namely central bank liquidity, market liquidity and funding liquidity are deFined and mentioned. Their advanced and dynamic linkages will give us a sensible understanding of the liquidity workings in the Financial system and reveal positive or negative e¤ects for Financial stability, depending on the degree of liquidity risk prevailing.

The causes of liquidity risk lie on departures from the complete markets and symmetric data paradigm, that can cause moral hazard and adverse selection. To the extent that such conditions persist, liquidity risk is endemic in the Financial system and will cause a vicious link between funding and market liquidity, prompting systemic liquidity risk. It is specifically this type of market risk that sometimes alerts policy manufacturers, as a result of of its potential to destabilise the Financial system.

In such cases emergency liquidity provisions will be a tool to restore balance. The central bank has the power and the obligation to minimise the important prices of liquidations and the chance of a Financial system meltdown. However, the role of central bank liquidity in such turbulent periods will not have guaranteed success, because it cannot tackle the roots of liquidity risk. In fact, the potential beneFits are limited by the actual fact that the central bank cannot distinguish between illiquid and insolvent banks with certainty. Therefore, it ought to only specialise in halting (temporarily) the vicious circle between funding and market liquidity. The tradeo between the beneFits and costs of intervention ought to be taken under consideration when the central bank has to choose on its liquidity providing strategy. This task is not straightforward and there's no established rule of thumb.

So as to eliminate systemic liquidity risk, greater transparency of liquidity management practices in required. Supervision and regulation are the fundamental weapons against systemic liquidity risk. These practices will tackle the basis of liquidity risk by minimising uneven info and ethical hazard through e¤ective monitoring mechanisms of the Financial system. In this way it is easier to differentiate between solvent and illiquid agents and therefore impose liquidity cushions to those most in need. This would additionally facilitate markets become more complete. But, such mechanisms can be expensive, due to the quantity of data that must be gathered. They should, so, be run by the most value e¢ cient and result-e¤ective agent.
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Freight Liquidators

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Sample Freight Liquidator Investigation

We have a tendency to remind you of the recent law reform and also the amendments to s53three of the Act, which provides that a liquidator must lodge a report with FrieghtTransportUnLimited relating to misconduct of a past or present officer or employee whilst practicable, or in any event, among six months after the liquidator has identified an offence or that the company is unable to pay more than fifty cents in the dollar.

Insolvency Practitioners and Responsible Entities

FrieghtTransportUnLimited has recently been operating closely with liquidators of accountable entities to come to a decision whether it is acceptable for those responsible entities to continue to hold an Financial Alliance Licence (FAL).

FrieghtTransportUnLimited has a power under section 915B of the Act to cancel the FAL of any financial services licensee that goes into external administration. After consulting with the liquidator of a accountable entity, FrieghtTransportUnLimited can typically cancel the FAL of the accountable entity where FrieghtTransportUnLimited believes the cancellation will not affect the liquidator's role in relation to the schemes operated by the responsible entity. In these circumstances, the cancellation of an FAL of a accountable entity is usually subject to a specification created underneath s915H of the Act that the FAL continues in impact for specific functions where, as an example, it is required by the liquidator for transferring or closing the accountable entity's schemes.

We remind practitioners who are appointed as liquidators of responsible entities of the importance of making certain that any schemes operated by the responsible entity are controlled prior to the liquidation being finalised. Liquidators have a range of options offered to them when handling schemes operated by the accountable entity, as well as transferring any schemes to a different accountable entity or taking steps to finally end up the schemes. Liquidators will would like to house any schemes taking under consideration the requirements of Chapter 5C of the Act and the schemes' constitutions. This includes acting in the best interest of members when determining how the schemes may be best prohibited.

When a liquidator is appointed to a accountable entity at a time when any schemes are still operating, they conjointly play an necessary role in assessing the viability of the schemes on behalf of the members and determining what happens to every scheme. This could involve the replacement of the responsible entity, a restructure of the scheme or the winding from the theme. If necessary, the liquidator could also wish to consider applying to the Court for directions, notably if there is an actual or perceived conflict of interest/duty. Likewise, when a liquidator is appointed to the accountable entity where its schemes are already in the method of being wound up, they play an necessary role in conducting the winding from the schemes on behalf of the accountable entity.

Recently, FrieghtTransportUnLimited has cancelled seven FALs of accountable entities that have gone into liquidation.

If you have got any questions or concerns about the external administration of a accountable entity, please be at liberty to contact members of FrieghtTransportUnLimited’s Investment Managers team (which is responsible for regulating accountable entities and therefore the operation of their registered managed investment schemes) as follows:
FrieghtTransportUnLimited insolvency update, June 2010

Update on CP 124 Directors' duty to forestall insolvent trading: guide for directors
We are currently considering submissions to FrieghtTransportUnLimited’s Consultation Paper 124 Directors’ duty to prevent insolvent trading: Guide for directors received, released in November 2009. FrieghtTransportUnLimited received 19 submissions in total.

FrieghtTransportUnLimited developed the guide to assist directors, particularly those of SMEs which may be in money problem, to fully understand this duty. Further, FrieghtTransportUnLimited believes the market might profit from clarification concerning the factors FrieghtTransportUnLimited considers when assessing whether there was a breach of the insolvent trading laws.

The proposed guidance sets out the key principles that FrieghtTransportUnLimited considers administrators want to take into account in performing their duty to prevent insolvent trading. Those principles are that a director:
? should keep him or herself informed concerning the money affairs of the company and frequently assess the corporate’s solvency;
? immediately on identifying concerns regarding the corporate’s viability, should take positive steps to confirm the corporate’s monetary position and realistically assess the choices obtainable to house the company’s money difficulties;
? ought to get appropriate recommendation from a suitably qualified person; and
? ought to think about and act appropriately on the advice received during a timely manner.

By providing steerage, FrieghtTransportUnLimited seeks to help directors each understand their duty to prevent insolvent trading and additionally, what they will do to minimise the risk that they can breach their duty.
We propose to unleash the Regulatory Guide in July 2010.
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Hotel Liquidators

Sample Hotel Liquidation Investigation

HotelsUnlimited alleges Professor Arkwright allowed JoeyBloggsLimited to trade whereas insolvent between twenty five July 2003 and one October 2004. HotelsUnlimited specifically alleges that while JoeyBloggsLimited was insolvent, Professor Arkwright incurred debts to contractors and retail providers. This matter was initiated as a result of HotelsUnlimited’s investigations and facilitated by funding from the AA Fund;

HotelsUnlimited continues to assist the profession by taking actions to confirm that directors of corporations in external administration go with their obligations, or are prosecuted for their failure to do so.

Staff from our Misconduct and Breach Reporting team has recently conducted a roadshow for insolvency practitioners about the LAP and how practitioners can best utilise the program.

Liquidator Assistance Program (LAP)

HotelsUnlimited will also execute search warrants and undertake Court proceedings to require directors to accommodates their obligations.

There has been increasing support by liquidators for the AA Fund in response to several initiatives implemented by HotelsUnlimited since its introduction. HotelsUnlimited has committed over $9.1m of AA Fund grants to Liquidators since the AA Fund commenced in February 2006 and the participation rate has increased steadily.

• confirmation that every one late fees incurred upon lodgement of the outstanding R&Ps can be paid personally by them and not met from funds belonging to external administrations.

A recent example is our execution of two search warrants to seize property, books and records of RG Munro Futures Pty Ltd (In liquidation) (RG Munro) and Starport Futures Trading Corporation (In liquidation) (Starport), a US registered company.

? A Sydney director, Mr Oliver Banovec, was sentenced to seven years jail, with a non-parole amount of four years 9 months in April 2010, following an HotelsUnlimited investigation where the liquidator of several of Mr Banovec's companies was funded beneath the AA Fund to research director conduct. Mr Banovec was convicted of fraud for failing to on-lend investor funds and instead using the money to support the business;
? In March 2010, the former company secretary of Chartwell Enterprises Pty Ltd (In Liquidation), Mr Ian Rau, pleaded guilty to eight charges bought by HotelsUnlimited. Criminal charges were laid against two company officers in August 2010 following an HotelsUnlimited investigation. AA Funding was granted to conduct public examinations of the officers, that assisted with HotelsUnlimited's investigations;

? In December 2009 and January 2010, a public examination of the director of Firepower Operations Ltd (In Liquidation), Mr Timothy Johnston was conducted by the liquidator with the support of funding from the AA Fund;
HotelsUnlimited insolvency update, June 2010

? The AA Fund was utilised to fund the liquidator of Storm Financial Ltd (In Liquidation) to conduct a public examination of the directors, Emmanual and Julie Cassimatis, regarding alleged breaches of the Corporations Act. The examination was conducted in September and October 2009.

? The liquidators of the Kleenmaid cluster were funded beneath the AA Fund to conduct investigations and prepare a report to HotelsUnlimited to assist with HotelsUnlimited's investigations within the collapse of the group;

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Computer Liquidators

Sample Liquidation Surveillance

JoeBloggsUnlimited undertakes surveillance visits of insolvency practices with the aim of improving practice and trade behaviours. Our surveillances usually involve a review of the observe’s procedures and processes and varied external administration files to confirm compliance with the law and trade standards.

Problems indentified in recent surveillances include:
? accepting appointments where actual or perceived conflicts of interest/duty exist;
? lack of disclosure of relevant relationships;
? inadequate investigations and reporting to creditors;
? considerations over lack of reporting of illegal phoenix activity; and
? files often not adequately documenting work undertaken, creating it tough to assess the reasonableness of time charged on administrations.

JoeBloggsUnlimited will typically discuss the issues identified with the practitioner as a 1st step. Where necessary, and in repeated cases of non-compliance, JoeBloggsUnlimited can pursue additional action, like referring matters to the Courts or to the Companies Auditors and Liquidators Disciplinary Board (CALDB).

Update to liquidator registration steering

JoeBloggsUnlimited is considering a revision to the Regulatory Guide 186 External administration: Liquidator registration to feature clarity to our interpretation of the continued necessities of liquidators to stay registered and where possible, provide benchmark steering regarding the standards and behaviours expected to stay registered.
In addition, the review will contemplate implementing an interview method as half of JoeBloggsUnlimited's procedures for addressing applications for registration.

It is anticipated that a consultation paper can be issued during the second [*fr1] of this calendar year.

Insurance Project

The Corporations Act needs a liquidator to take care of adequate and applicable skilled indemnity and fidelity insurance for claims which will be created against the liquidator in affiliation with external administrations under s1284 of the Corporations Act (the Act).

Regulatory Guide 194 Insurance needs for registered liquidators (RG 194), issued in June 2008, sets out JoeBloggsUnlimited’s needs in relation to the appropriate insurance cowl.

Typically, skilled indemnity cowl would be thought of adequate where:
a) the add insured for each claim, and for all claims in mixture, is not but the lowest of:
(i) $20 million; or
(ii) ten times the very best gross fee billed by the registered liquidator in an exceedingly single year for a explicit insolvency engagement;
JoeBloggsUnlimited insolvency update, June 2010
b) the policy’s excess for each and each claim is ready at a sufficient low level for the registered liquidator’s business to be able to confidently sustain it as an uninsured loss, taking into account the money resources of the registered liquidator and their firm.

JoeBloggsUnlimited’s guide does not indicate the extent of the cover that might be thought of adequate for fidelity insurance. We tend to expect registered liquidators to require a prudent, conservative approach when determining an adequate level of insurance to hide the risk of fraud or dishonesty claims that will arise during the period of the duvet.

RG194 requires that policies will need to incorporate automatic escape cowl from one August 2010 (see RG 194.104).
JoeBloggsUnlimited intends to undertake a review of all liquidator policies to check liquidator compliance with s1284 of the Act and RG194. This will start once August 2010.

In instances of fabric non-compliance, JoeBloggsUnlimited might take steps to cancel a liquidator's registration pursuant to s1290A of the Act.

Late Lodgements

We tend to are seeking to boost the timeliness of information lodged in our database. We are paying particular attention to practitioners who have incurred relatively giant fines for the late lodgement of forms.
In the close to future, we tend to can be writing to, and seeking explanations from, sure practitioners who have incurred vital fines in respect to late lodgements.

Aged external administrations

It is very important that external administrations are finalised in a timely manner to confirm an efficient use of practitioner resources and the accuracy of the JoeBloggsUnlimited external administration database.
In January 2010, JoeBloggsUnlimited wrote to practitioners who have aged external administrations over four years, seeking explanations for reasons that have delayed the finalisation of these administrations. We tend to are currently processing the responses.

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Liquidated

Liquidated

Commercial law 4 Sale of goods:
contract, property and risk page 63

Typically, future goods will be unascertained. If the buyer agrees to buy a new Bentley from a dealer, who does not have what is required in stock, this is a sale of future and unascertained goods. However, goods that exist and are identified in the contract, but are owned by a third party, are both future goods (because the seller has not acquired them) and specific goods (because they are identified at the time of the contract) (Varley v Whipp [1900] 1 QB 513): for example, the sale by Jake to Pugwash of the Bentley, which is at the time of the contract owned by Mary from whom Jake intends to acquire it, is a sale of future, specific goods.

Ascertained goods Where there is a contract for the sale of unascertained goods, once the goods are identified and connected by consent of the parties to the contract (‘appropriated’: section 4.4.6 below), they become ascertained goods. The significance of this is that while goods are unascertained no property in them can pass to the buyer and the buyer has, therefore, only a contractual right against the seller and has no rights in any goods (see section 4.4.1). Property can only pass when the goods become ascertained. The rules on passing of property are discussed below (see 4.4). For the moment it is worth noting one of the problems with the rule that property cannot pass in unascertained goods. In Re Wait [1927] 1 Ch 606 (Sealy and Hooley, p.246), 500 tons of wheat were sold from a cargo of 1000 tons that was on board a ship, Challenger. When the seller went into liquidation, the court held that the sale was of unascertained goods and so under s.16 property had not passed to
the buyer at the time of the contract. The buyer could not, therefore, claim the goods and merely joined the other general creditors. Similarly, in Re Goldcorp Exchange Ltd (in receivership) [1995] 1 AC 74, customers of a company purchased bullion for future delivery on terms that they were buying ‘non-allocated metal’, which meant it was not set aside but was stored as part of the company’s general stock. Under the agreement, an investor had the right to take physical delivery of bullion from that stock. The company became insolvent.

The Privy Council held that the goods were unascertained and property had not passed because the company was free to decide what bullion to allocate to a particular investor.
Useful further reading
Bridge, M. Personal property law. (Oxford: Oxford University Press, 2002)
[ISBN 0199254761] particularly, pp.12–15, 26–27, 28–31, 80–93.
Goode (2004), pp.31–45.

Summary
The passing of property is determined, in part, by the categorisation of the goods as either existing or future and as either specific or unascertained. Into which categories goods fall depends on the situation at the time of the contract. Existing goods are owned by the seller, while future goods are not. Specific goods are identified at the time of the contract, while unascertained goods are not. Unascertained goods become ascertained when they are appropriated to the contract with the consent of both parties. These rules are important because, normally, property will not pass in unascertained goods (subject to an various exceptions).

Article Courtesy: http://www.londoninternational.ac.uk/current_students/programme_resources/laws/subject_guides/commercial/commercial_ch4.pdf
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Liquidations

What is a contract of sale of goods?

Essential reading - Sealy and Hooley, Chapter 7: ‘Introduction and definitions’, pp.257–72.

The SGA defines a contract of sale of goods as: a contract in which the seller transfers [called a sale: s.2(3)] or agrees to transfer [an agreement to sell: s.2(4)] the property in goods to the buyer for a money consideration, called the price (s.2(1)).

It is worth noting that ‘property’ refers to the title to the goods and not the goods themselves.

Before looking more closely at this definition, it is worth considering some transactions that are excluded.

Transactions that are not sales
Contract of bailment This is where goods are delivered on terms requiring their return  to the owner or to another party. Although the person holding the goods under such a contract has certain rights and obligations, there is no intention that property will pass. Contract of hire purchase Typically, this is a means by which someone can buy goods by making payments over a period of time. However, it is not a sale because, while the intention is that the buyer will own the goods when all the payments have been made, the passing of property will only occur if the buyer chooses to exercise an option under the
contract to that effect. There is no obligation on the buyer to exercise this option (Helby v Matthews [1895] AC 471; Sealy and Hooley, pp.263–64). This does mean that there will be a sale if the contract stipulates that property will pass at some specified time in the future (Forthright Finance Ltd v Carlyle Finance Ltd [1997] 4 All ER 490; Sealy and Hooley, p.264). This will be an agreement to sell (s.2(5)) as opposed to a contract of sale where the property passes at the time of the contract (s.2(4)), but both are within the SGA (see section 4.3.3, below). See the criticism of the distinction between  hire-purchase and sale contracts made by Sealy and Hooley, p.265.

Security interests Where someone (the chargor) grants an interest in goods in favour of another (the chargee) as security for a loan or some other form of credit, the chargor retains property in the goods. The chargee does acquire a proprietary interest in the goods, which will cease when the debt is paid (Sealy and Hooley, p.266).

Agency contracts Where A buys goods from T on behalf of P and P has authorised or later  ratifies the purchase, there is an agency contract between P and A and a sale contract between P and T. contrast this with the situation where A acts as a principal so that there a sale contract between T and A and another between A and P. (See Chapter 2 above.) Contract for work and materials This is a contract involving skill and labour as well as the transfer of property in goods, such as the painting of a portrait by an artist (Sealy and Hooley, pp.266–70). Where the work element can be separated from the goods, as where a gas fitter installs a new central heating boiler, one might be able to suggest there are two contracts, one for the labour (contract for work) and one for the boiler (contract of sale).
The problem arises where the work done by the fitter is very defective and the householder wishes to reject the boiler. This may not be possible because the boiler is not defective and there is, therefore, no breach of the sale contract, only a breach of the contract for labour. Where the goods and labour are mixed together, the test applied to decide if it is a contract of sale or a contract for skill and labour is to look at its substance. If an artist is commissioned to paint a portrait, the fact that materials, such as paint and canvas, will also pass under the contract does not make it a contract of sale of goods. Greer LJ thought the test involved determining if the skill is ‘only ancillary’ or if ‘the substance of the contract is the skill and experience of the artist in producing the picture.’ (Robinson v Graves [1935] 1
KB 579; Sealy and Hooley, pp.268–69). The distinction in that case was between the portrait painter and the maker of a set of dentures: it was concluded that in the latter situation there is a sale of goods because ‘the principal part of that which the parties are dealing with is the chattel which will come into existence when such skill as may be necessary to produce it has been applied’.

Article Courtesy: http://www.londoninternational.ac.uk/current_students/programme_resources/laws/subject_guides/commercial/commercial_ch4.pdf
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Wholesale Liquidators

The Law behind Wholesale Liquidators and the Sale of Goods Act

4.1 The Sale of Goods Act
4.1.1 The Act
The original Sale of Goods Act 1893 was an attempt to codify much of the common law on sale contracts. The Act, therefore, was shaped by the fact that the case law on sales was mainly concerned with sale for the purpose of trading (for example, a manufacturer of goods selling to a retailer of goods) rather than for consumption (for example, a sale by a retailer to a consumer). By the late twentieth century there was recognition that the principles derived from such contracts might not serve the needs of consumers.

In providing greater protection for the consumer, the Sale of Goods Act 1979 was part of a shift from the general principle of caveat emptor, according to which it was for the buyer to ensure goods did not suffer from any defects (see s.14(1), discussed in 5.5 below), to a position where the seller is obliged to ensure that goods do not suffer from certain types of defects, or that the buyer is made aware of such defects before the sale. This shift affects all buyers, including business people.

The change of emphasis from sale for trade to sale for consumption is also illustrated by the change in the main implied term as to quality. In the 1893 Act goods were required to be of ‘merchantable quality’, which assessed quality according to their value in trade. This has been replaced by a requirement that goods be of satisfactory quality (s.14(2)), which emphasises issues of consumption.
This shift in the Act has been reinforced by the Unfair Contract Terms Act 1977 and by the Sale and Supply of Goods to Consumers Regulations 2002, which restrict the ability of sellers to contract out of their obligations and which give greater protection to consumers (as opposed to commercial buyers, who are, however, not ignored by the 1977 Act).

Yet it would be wrong to characterise the recent history of sales law as simply concerned with the problems of buyers. For instance, there has been some relaxation of the rules in the context of sales between business people: for example, s.15A (introduced into the SGA in 1994) has made it more difficult for the non-consumer buyer to reject defective goods (see Chapter 6). In spite of the development of distinctions between the law applying to commercial (business-to-business sales) and the law applying to consumer sales (business-to-privatebuyer sales), the rules remain mixed together in the same legislation: the SGA and related statutes, such as the Unfair Contract Terms Act 1977. This has led to confusion and to calls for separate codes for the different types of sale.

4.1.2 Interpreting the Sale of Goods Act 1979
Essential reading
Sealy and Hooley, Part III: ‘Domestic sales law’, Chapter 7: ‘Introduction and definitions’, pp.245–47.

The Sale of Goods Act 1893 was meant to codify the common law on contracts for the sale of goods, although in truth it is only a partial code because key areas of contract law are not fully covered or are entirely omitted (for example, formation and misrepresentation). The general principles of contract law are, therefore, still relevant (see s.62(2)).

The approach to interpreting codifying statutes was laid down by Lord Herschell in a case on the Bills of Exchange Act 1882:

I think the proper course is in the first instance to examine the language of the statute and to ask what is its rational meaning, uninfluenced by any considerations derived from the previous state of the law, and not to start with inquiring how the law previously stood, and then, assuming that it was probably intended to leave it unaltered, to see if the words of the enactment will bear an interpretation in conformity with this view. (Bank of England v Vagliano Brothers [1891] AC 107). Atkin LJ confirmed that this was the correct approach to the SGA: ‘Inasmuch as we are now bound by the plain language of the Code I do not think that decisions in cases before 1893 are of much value’ (Re Wait [1927] 1 Ch 606; Sealy and Hooley, p.246). Yet, what this means ¢ page 58 University of London External Programme
is not always clear. Indeed, Atkin LJ followed the statement quoted above by referring to two pre-1893 cases. In Young & Marten Ltd v McManus Childs Ltd [1969] 1 AC 454, Lord Upjohn explained, ‘Your Lordships were properly referred to authorities in the nineteenth century, for section 14(2) only put the common law as it had been established into a statutory code.’ (Also Carlos Federspiel & Co SA v Charles Twigg & Co Ltd [1957] 1 Lloyd’s Rep 240; Sealy and Hooley, pp.320–22.)

The most recent version of the Act was passed in 1979 and that Act has been amended in 1994, 1995 and 2002. Interpreting the legislation rests on the pretence that the Act, including provisions drawn from the 1893 Act, was written at one time. Potter LJ explained (Stevenson v Rogers [1999] QB 1028):

The [Sale of Goods] Act of 1979 forms a single code; however, that is upon the basis simply that it consolidates and enacts within one statute and without material amendment a number of disparate statutes previously governing the field of sale of goods. While, in the first instance, a consolidating Act is to be construed in the same way as any other, if real doubt as to its legal meaning arises, its words are to be construed as if they remained in the earlier Act. Thus, in terms of the proper construction of its provisions, the Act of 1979 is not to be regarded as more than the sum of its parts.
Lord Diplock (Ashington Piggeries Ltd v Christopher Hill Ltd [1972] AC 441) proposed a different method of interpretation. He drew attention to the danger of not allowing the law to develop and so restrict the freedom of the parties to engage in more sophisticated agreements than were envisaged by the courts in the nineteenth century. He urged that, the Act ought not to be construed so narrowly as to force upon parties to contracts for the sale of goods promises and consequences different from what they must reasonably have intended. Instead, [its provisions] should be treated as illustrations of the application to simple types of contract of general principles for ascertaining the common intention of the parties as to their mutual promises and their consequences, which ought to be applied
by analogy in cases arising out of contracts which do not appear to have been within the immediate contemplation of the draftsman of the Act in 1893…I believe that the basic principle of the English common law of contract, including that part of it which is codified in the Sale of Goods Act 1893, is to give effect to the common intention of the parties as to their mutual promises in the sense that I have just described, I prefer to deal with each appeal by considering first the transaction between the buyer and the seller in the light of common sense and good faith in business, before examining the particular provisions of the code upon which the parties rely.

Article Courtesy: http://www.londoninternational.ac.uk/current_students/programme_resources/laws/subject_guides/commercial/commercial_ch4.pdf
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Office Furniture Liquidators

Image Courtesy: http://www.the-experts.co.uk/article-218031-what-can-i-expect-from-furniture-liquidators.html

BY JOAN VERDON
STAFF WRITER
A slumping housing market put Domain Inc. out of the furniture business. Now it has to fight for customers in another crowded area:
the going-out-of-business field.

The same housing slowdown that claimed Domain has made life tougher for companies such as Hudson Capital Partners LLC, which is handling the liquidation of the seven Domain stores in New Jersey. "You are seeing a huge amount of furniture liquidations," said Jim Schaye, president and chief executive officer of Hudson Capital.

Liquidators, Schaye said, now have to be cautious in bidding on liquidation opportunities because of the multitude of furniture clearance sales. "You have to be very careful in evaluating what the recoveries are going to be, because they're going to be different than they were six months ago," he said. Domain, the latest furniture retailer to fall victim to the housing slump, will be holding a going-out-of-business sale at its Paramus showroom, and six other New Jersey locations for the next six to eight weeks.

The Domain bankruptcy and liquidation follows the bankruptcy filings and liquidations of The Bombay Co., Levitz and Sofa Express. Another large chain, Wickes Furniture, with 43 stores in the Midwest and
West, filed for bankruptcy this month. "That's a huge amount of liquidations in just CHRIS PEDOTA / THE RECORD The Paramus store is one of seven Domain locations in the state going out of business, hurt by low sales due to the housing crunch.

FAST FACTS
* During the first three quarters of 2007, furniture imports declined by 4.6 percent.
* A 4.6 percent drop in furniture deliveries is the equivalent of 72,000 20-foot-long shipping container boxes.
* The Bombay Co., formerly the ninth-largest importer of furniture, and Levitz, which was the 10thlargest, both filed for bankruptcy in 2007.

However, real estate experts believe the still-vibrant North Jersey market can absorb the increase. Schaye said he expects Domain's sale will attract customers because "it was a really nice store" with a good brand name. "When you put a going-out-of-business sign in front of a very nice store, customers react.''

He said the sale will continue until everything is sold. "There will be nothing left at the end of the sale," he said. "There is a price for everything." Bankruptcy documents valued the inventory for the 27 Domain stores nationwide at $20 million. Hudson Capital and liquidation firm Great American jointly pledged to give Domain 64 percent of the proceeds of the going-out-of-business sales. Schaye said the glut of furniture going-out-of-business sales is an obvious result of the housing slowdown. Furniture, he said, "is one of those purchases that people will tend to put off. The last thing you need to do is to redo your house or to spend money on furniture."

Michael Andrews, chief economist for PIERS, a research company that tracks port imports, said furniture imports declined 4.6 percent in the first three quarters of 2007. The closing of Bombay and Levitz stores most likely will contribute to declines this year as well, because they were the ninth- and 10th-largest U.S. importers of furniture, respectively.

"A lot of furniture is bought when homes change hands," Andrews said. He thinks it will be some time before the housing market bottoms out. "First it's got to stabilize, or stop falling," he said. "It's going to be a while before housing gets back on its feet."
E-mail: verdon@northjersey.com
Source: PIERS Global Intelligence
Article Courtesy: http://www.piers.com/news_docs/16.pdf
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Motors Liquidation Company

Image Courtesy: http://www.4wheelsnews.com/gm-shuts-down-willow-run-manufacturing-plant/

Here is a sample Question and Answer document that helps explain Motor Liquidation...

MOTORS LIQUIDATION COMPANY

INVESTOR FAQ
Q. What is Motors Liquidation Company? How does it relate to GM?
A. After it sold substantially all of its assets in the section 363 sale to General Motors Company to create the “new GM,” General Motors Corporation was renamed “Motors Liquidation Company.” For the operations, assets and liabilities that were not transferred to General Motors Company,” the chapter 11 bankruptcy case will continue in order to resolve creditors’ claims and wind down those operations in an orderly way.

Q. I have noticed recent changes in the stock price and trading volume. What’s happening?
A. Management continues to remind investors of its strong belief that there will be no value for the common stockholders of Motors Liquidation Company in the bankruptcy liquidation process, even under the most optimistic of scenarios. Stockholders of a company in chapter 11 generally receive value only if all claims of the company's secured and unsecured creditors are fully satisfied. In this case, management strongly believes all such claims will not be fully satisfied, leading to its conclusion that the common stock of Motors Liquidation Company will have no value.

Q. I want to sell my remaining shares. How will the common stock be traded going forward?
A. Since the common stock is not traded on the NYSE and soon be delisted, market makers not affiliated with us may conduct limited trading on the Over-the-Counter Bulletin Board (OTCBB) and/or the Pink Sheets even while we are involved in a liquidation process under chapter 11. We will not be involved in initiating or supporting trading on the OTCBB or the Pink Sheets. Management continues to remind investors of its strong belief that there will be no value for the common stockholders of Motors Liquidation Company in the bankruptcy liquidation process, even under the most optimistic of scenarios. You should contact your broker for further information.

Q. What will happen to my current stock and bond holdings? Will I receive General Motors Company stock?
A. All of the publicly owned stocks and bonds previously issued by General Motors Corporation are still securities of that company, which has been renamed “Motors Liquidation Company,” and will be treated in accordance with the provisions of the U.S. Bankruptcy Code and the rulings of the Bankruptcy court. None of Motors Liquidation Company’s publicly owned stocks or bonds (including the common stock that formerly traded on the NYSE under the ticker “GM”) are or will become securities of General Motors Company, which is an independent separate company.

Q. Why can't stockholders file claims with the court?
A. Stockholders do not receive a claim because they are owners of the company, not its creditors. Generally in a bankruptcy, all secured and unsecured claims of creditors would have to be fully satisfied first for stockholders to recover any value. Motors Liquidation Company management strongly believes that this will not occur here, and that the common stock will have no value.

Q. How can bondholders and other unsecured creditors better understand the bankruptcy process and status of the proceedings?
A. The office of the United States Trustee has appointed the statutory Unsecured Creditors Committee (the “UCC”), which is charged with representing all unsecured creditors in the proceedings (including unsecured bondholders). Questions for the UCC should be directed to its attorneys, who can be reached at:
Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036
Telephone: (212) 715-3275
Facsimile: (212) 715-8000
Thomas Moers Mayer
Kenneth H. Eckstein
Robert T. Schmidt
Adam C. Rogoff
Gordon Z. Novod

Q. Will I be receiving interest payments on my notes/bonds?
A. It is very unlikely that cash interest payments will be made on Motors Liquidation Company securities. All parties, including bondholders, will be treated in accordance with the provisions of the U.S. Bankruptcy Code and the rulings of the Bankruptcy court.

Q. What will happen to my “preferred shares”?
A. Motors Liquidation Company does not have any preferred stock, although many investors mistakenly use that term to refer to several series of convertible debentures that the company issued. These securities are actually series of unsecured bonds, and will be treated similarly to other unsecured bonds in the court proceedings.

Q. Where can I go to get more information on the bankruptcy proceedings?
A. Additional information, including court documents, can be found on the bankruptcy court docket at http://www.motorsliquidationdocket.com.

Q. Where can I go to get more information on Motors Liquidation Company?
A. Information may be found on the company’s website, http://www.motorsliquidation.com or by calling 800-414-9603 or emailing motorsliquidation@alixpartners.com.
Mailing address for Motors Liquidation Company Fulfillment Center:
Motors Liquidation Fulfillment Center
c/o AlixPartners, LLP
2100 McKinney Avenue, Suite 800
Dallas, Texas 75201

Q. Where can I find more information about General Motors Company?
A. Please refer to General Motors Company’s website, http://www.gm.com.

Article Courtesy: http://graphics8.nytimes.com/packages/pdf/gmliquidation.pdf
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Liquidation Stock

Image Courtesy: http://www.iloveagoodmystery.com/photos/bouchercon_2005/fri_auction2.jpg

How many hours will be spent on a particular liquidation process? What is the value of that time? What are the fees that will have to be paid for the many options available to you?

These factors have to be considered in your strategic plan. Let’s say for example that you have 100 items to sell, and that you could make $20 more per item if you sell them one at a time than you could if you offered them as a wholesale lot. Sounds great right? What if it takes you 2 hours to list each item and package and ship it after the sale, and that the associated fees of the listing and collection are $10 per item. You really then are only making $5 per hour for your efforts! Determining the true cost of liquidation is therefore, very, very important.
Without market research you may not be able to know where these dollar amounts really lie for your particular product. You can see how you might be wasting a lot of time to get a small amount of money if you make some poor decisions due to the lack of information.

Choose the Best Type of Listing

The next step is to decide what type of listing to use. One, or a combination of several of the following types of listings, may be appropriate:

1. Individual item sale – Selling off inventory one item at a time with an emphasis on low or no reserve to ensure listing success.
2. Small lot sale – Combine product into groups of 3, 5, 10, 20, or whatever number is appropriate for the specific product and is acceptable to your customer base.
3. Large wholesale lot sale – Selling off an entire inventory in one or more very large lots. Let’s look at a real-life example from eBay. Let’s say that you have a few hundred disposable Kodak Cameras that you want to liquidate by selling them on eBay. How do you do it? You
have any number of choices when it comes to lot size. You may want to sell them one by one, in groups of 5 or 10, or maybe you just list them in one enormous lot. Without market data you will make a guess and roll the dice. Let’s see what some actual listing data suggests that you do.

Editorial Courtesy: http://www.hammertap.com/my_files/pdf/ebayradio/Liquidation%20Report.pdf
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Liquidation Sales

Image Courtesy: http://www.flogit4u.com/

Regardless of the type of business you have or what you want to do with your business; keep it, sell it, retool it, expand it, downsize it, change it, or simply retire from it, you'll be able to do so much more profitably using accurate information when making liquidation decisions. Careful market research is probably the most effective solution to help you get the information you need to generate cash by liquidating unwanted inventory.

Imagine that you have a hundred items to sell. Do you list them individually or all at once? How about in small lots? What lot size will generate the most profit? All of these questions would be difficult to answer without proper market research. Accurate market research will help you know:
· How to get the best response to each and every listing.
· How to sustain your sales volume and keep customers coming back.
· How to maintain the highest profit margin with minimum expense.

This report will discuss some tips to generating and executing an effective liquidation strategy. Market research is key in this effort and will help you reduce your time, effort and risk. It is important that each of these strategies and tips are customized for your store and implemented correctly.

eBay Product Liquidation Tips

Rarely does anyone begin a business planning to one day sell off a large portion of their assets, but the reality is that it happens all the time. Many eBay sellers undertake this task with very little effort toward researching best practices. It is amazing to see so many business owners go it alone without this important information since they often have a good amount of cash tied up in the inventory, and since converting this inventory to cash can be critical to his or her business and financial future.

The following tips are aimed at helping people understand a bit more about the process of liquidating inventory in a profitable and professional manner.

Editorial Courtesy: http://www.hammertap.com/my_files/pdf/ebayradio/Liquidation%20Report.pdf
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Liquidate

Executive Summary

At one point or another, almost any small business is confronted with a problem: excess inventory and a lack of positive cash flow. Keeping pace in today's fast-moving and unpredictable marketplace isn't easy. Usually liquidation is just a normal step that comes about in the regular course of business. Sometimes it is because a company is in need of an effective turnaround or exit strategy from one area of their
market or from the business arena altogether.

Whether you are using eBay listings in the process of reorganizing, transforming, liquidating, or going out of business, a little market research and strategic thinking can make a significant difference in the amount of positive profit you are able to generate.

Regardless of the type of business you have or what you want to do with your business; keep it, sell it, retool it, expand it, downsize it, change it, or simply retire from it, you'll be able to do so much more profitably using accurate information when making liquidation decisions. Careful market research is probably the most effective solution to help you get the information you need to generate cash by liquidating unwanted inventory.

Inventory Liquidation Logic

Excess inventory liquidation is a challenge that must be overcome to create a successful turn -around or exit strategy.

It is a well established fact that businesses simply can't survive without cash flow. Cash is the lifeblood of any business and is the vital component that keeps a business financially healthy. Similarly, the function of your inventory is to generate sales and ultimately money. Inventory can be properly characterized as a business’ money sitting on a shelf. Success comes from maintaining a proper balance between the right amount of merchandise and probable customer demand. Often finding this balance can be compared to finding the proverbial “needle in a haystack”.

At one point or another, almost any small business is confronted with a problem: excess inventory and a lack of positive cash flow. Keeping pace in today's fast-moving and unpredictable marketplace isn't easy. Usually liquidation is just a normal step that comes about in the regular course of business. Sometimes it is because a company is in need of an effective turnaround or exit strategy from one area of their
market or from the business arena altogether.

Whether you are using eBay listings in the process of reorganizing, transforming, liquidating, or going out of business, a little market research and strategic thinking can make a significant difference in the amount of positive profit you are able to generate.

eBay has been a tool for retail storefronts to liquidate excess inventory effectively. It is also a great tool for eBay based businesses to effectively multiply sales, turn inventory quickly into cash, and to recover the maximum value for items sold. The goal of both these groups is the same: maximize the net worth of business assets and generate positive cash flow with a “liquidation” business strategy.
 
Market Research is the Key to Successful Liquidation

It is generally accepted that the main reason many new businesses fail within the first few years is not the lack of money, but in failing to find and implement key information and knowledge. Success is often determined by simply knowing how to make correct decisions based on correct information (including accurate market research) and by implementing an effective business plan. Remember, if you fail to plan, you
probably should plan to fail. “Whether you are using eBay listings in the process of reorganizing, transforming, liquidating, or going out of business, a little market research and strategic thinking can make a significant difference in the amount of positive profit you are able
to generate.”

Editorial Courtesy: http://www.hammertap.com/my_files/pdf/ebayradio/Liquidation%20Report.pdf

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Liquidation Auctions

POLICE GOVERNMENT & BAILIFF AUCTIONS DIRECTORY
Below is a list of auctioneers around the country who often undertake the resale of property from the police, bailiffs and other public authorities. Your next simple step is to visit the websites or contact the nearest ones to you and find out the next viewing times and auction dates! Many of them can supply catalogues of current and previous auctions. You will be truly amazed at the savings you can make!

Towards the end of the guide, you may find 10-15 places not necessarily connected to public authorities. Some of them are renowned Auctioneers or Salesrooms where you can find outstanding items or bargains; the rest are really useful Internet portals that provide lists, catalogues, news etc. for hundreds of auctions nationwide. I hope you find this extra information helpful. I’m sure you appreciate the possible value this information could mean to you and that the data contained in this document is not easy to come by! If your happy with this information please do leave feedback and I will do the same.

Wingetts
Auction Room
29 Holt Street
Wrexham LL13 8DH
Tel: 01978 353553
Fax: 01978 353264
auctions@wingetts.co.uk
http://www.wingetts.co.uk/

Auction galleries in Wrexham that hold weekly general sales and monthly antique, fine art and collectable sales. Weekly Auctions of Victorian, Edwardian and Modern furnishings and effects. Also general household sales including electrical goods, furniture, metalware
etc.

Monthly Auctions of Fine Art and Antiques.
Online sales search/listing facility available.
Wingetts act for Banks, Building Societies, County Courts, Leading Law Firms, and Private Individuals.
Valuation services for Executors, trustees and individuals, for purposes of:
Sale, Probate, Insurance, Family Division and Financial planning. Stock that includes most house clearance contents.

Scarborough Borough Council
Estates Manager
Estates Services
Town Hall
Scarborough YO11 2HG
Tel. 01723 232464
Fax 01723 232433
estates@scarborough.gov.uk
http://www.scarborough.gov.uk/

The Council does not generally auction its property, but has tended to use the informal tendering route. If the Council uses external agents then it would use only Chartered Surveyors only. The Council will generally invite agents to tender for the commission and depending upon the property will use local or regional agents. Examples of agents used in the past are as follows:
Regional: DTZ Debenham Tie Leung – Chestertons - Humberts Leisure – Donaldsons – Carter Jonas
Local: Chapman Preston & Hastie - Ward price – Staintons - Edward Astin & Co – Cundalls - Boulton & Cooper UK Police Property Disposal – Surrey Police Online

Mount Browne
Sandy Lane
Surrey
GU3 1HG
01483 571 212
http://www.bumblebeeauctions.co.uk

Continuous Online UK Police Property Disposal virtual website Lost and found - Stolen/recovered In November 1997, Surrey Police and the Metropolitan Police mounted a display of property at Epsom Race Course. It was a great success and the comments from Victims led to work commencing on the creation of this site.

Items include: Electrical equipment – Computer equipment – Mobile phones – Cameras - Clocks & watches – Vehicles & bicycles – Hi-fi’s, car stereos – CDs & DVDs – Clothes & textiles – Jewellery – Sports equipment – Toys & games – Tools - Miscellaneous

Free registration allows for the real-time search and management of the complete database for all current and previous auctions.

Fellows & Sons Auctioneers
Augusta House
19 Augusta Street
Birmingham
B18 6JA
Tel: 0121 212 2131
Fax: 0121 212 1249
info@fellows.co.uk
http://www.fellows.co.uk

Corporate Asset Recovery
Experience in dealing with the disposal of both retailing and manufacturing businesses to handle large consignments of: Retail Jewellery Stocks - Manufacturing Jewellers - Fancy Goods - Retail & Wholesale - Gem merchants & Lapidaries - Reproduction & Modern Furnishings - Wines & Spirits - Costume Jewellery & Fashion Accessories Auctions Specialist areas: Antique & Modern Jewellery - Pawnbrokers Unredeemed Jewellery Pledges - Antique & Modern Silver - Antique & Later Furnishings - Pictures & Prints – Collectables - Ceramics, Porcelain & Glass - Clocks & Watches – Plated Ware, Coins & Medals - Toys & Dolls - Scientific Instruments Lost & Found Property Department

Grampian Police
Force Headquarters,
Queen Street,
Aberdeen AB10 1ZA
Tel: 0845 600 5 700
http://www.grampian.police.uk/customercentre/lostprop/lostproperty.cfm

All found property is retained by the Police for a period of 2 months to allow time for the loser to reclaim it. The finder is then given a further month in which to claim back the property after which the property is set aside for disposal as directed by the Chief Constable, usually by sale at auction. There are normally four such auctions per year at approximately three month intervals.

Editorial Courtesy: http://homepage.ntlworld.com/pda.nib/ebook.pdf
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Government Liquidation

Be wary of offers to sell you “inside” information about Federal Government sales.

Some Federal agencies maintain mailing lists with na mes of people inter ested in being notified about upcoming sales. In these cases, agencies may charge a subscription fee to maintain the list and cover mailing costs. Non - governmental organizations that sell information about these sales often don’t tell consumers that they can r eceive sales information just by contacting the agency ’s local or regional
office. You may see advertisements offering to sell you access to little - known sources of Federal G overnment property. It’s likely that
they are selling the na mes and addr esses of the Federal Government agencies listed in this publication. Be aware that the information sold by non - governmental entities may not be accurate or up - to - date.

l Know where to f ind current Federal Government sales information. To find information about specific upcoming sales, check the classified
or business sections of national or local newspapers. Some sales programs may even advertise on local radio and television. Notices may also
be also posted at post offices, town halls, and other local and Federal G overnment buildings. 

Marshals Service sales program, look under the Department of Justice in the “U.S. Government” listings in the phone directories of major cities in your state. If you have difficulty locating the local office of a particular sales progra m, call the Federal Citizen Information C enter ’s National Contact Center (NCC) for assistance. This service, provided by GSA, can tell you the location of the sales office closest to you.

Consumer Tips

Do your homework before going to a Federal Government sale or auction.

Before attending, research the sale by contacting the sponsoring agency. Find out how and when the sale or auction will be held, what bidding procedure will be used, and what special restrictions or unusual conditions apply. It’s important to ask what forms of payment are
accepted. Most sales require a guaranteed method of payment such as money order, certified check, or cash. Credit cards are sometimes
accepted. Also, look for information prior to the sale on the buyer’s responsibility for property removal, inspection times prior to the sale,
and zoning rules if purchasing land in an urban area. In most cases, the “Invitation For Bid” will answer these types of questions. It is an
informational piece released by the sponsoring Federal agency that contains a description of the property being offered for sale with the sale
terms and conditions. It’s wise for potential buyers to attend several sales to get a feel for the auction process.With just a little research,
you can get the information that you need to make a successful purchase.

Article Courtesy: http://www.pueblo.gsa.gov/cic_text/fed_prog/fedsales/finalfsg.pdf
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Liquidator

Image Courtesy: http://bridgenewland.com/close-down-liquidation/

COMPULSORY LIQUIDATION

What are the powers of the liquidator?

A liquidator's powers are wide and include powers to sell the company’s assets, to bring and defend legal proceedings and to pay dividends to the company’s creditors. Some of the liquidator’s powers can only be exercised with the agreement of the liquidation committee (or if none the DTI) or the court.

Does the liquidator pay unsecured creditors the money owed to them?

Secured and preferential creditors are paid before unsecured creditors. Secured creditors are those that have some form of security over a company’s property (for instance a bank with a fixed and floating charge debenture). Secured creditors are entitled to be repaid their debt out of the proceeds of sale of the secured assets in priority to ordinary unsecured creditors.

Preferential creditors are a special category of unsecured creditor. They consist mainly of certain debts due to employees and the Redundancy Payments Service and are paid in priority to all other unsecured creditors.
The liquidator will pay a dividend to unsecured creditors if enough funds have been realised from the company’s assets after paying costs incurred.

When all claims have been adjudicated or provided for, the liquidator will declare a dividend. The dividend will be a percentage (pence in the pound) of each creditor’s total admitted claim, based on the cash available for distribution to the creditors and the total of all creditors’ claims. All unsecured creditors are treated equally.

Six months after writing off the debt in your accounts you can claim VAT Bad Debt Relief from HM Customs and
Excise for VAT you have paid. How do I make a claim in the liquidation?

The liquidator will write to all known creditors asking them to submit their claims. You should submit your claim to the liquidator in writing within the specified time limit. You should also send enough supporting evidence of your claim, e.g. copy statements, invoices, correspondence etc. to allow the liquidator to decide whether or not your claim is valid. The liquidator will not necessarily acknowledge receipt of your claim, but will advise you when he  has adjudicated your claim. Any costs incurred in submitting your claim will not be reimbursed.


COMPULSORY LIQUIDATION

When is the liquidation complete?

The liquidation is complete when all the assets have been realised, all creditors' claims have been adjudicated (where there are sufficient funds) and net realisations after expenses of the liquidation have been distributed to the creditors. The liquidator will call a final meeting of creditors and present his final receipts and payments account, together with a report showing how the liquidation has been conducted.

What should I do if I am dissatisfied with the liquidator's handling of the case?

You should contact the liquidator to try to resolve the problem. If you are still not satisfied you may be able to make an application to court. If you believe that the liquidator is guilty of professional misconduct, you should contact his regulatory body.

The unsecured creditors can form a liquidation committee to help the liquidator Liquidation committee members are not paid, but will receive their reasonable travelling expenses as a cost of the liquidation.

As an unsecured creditor, what information am I entitled to?

The Official Receiver will have sent a report to creditors. If you would like information on progress at any time, you should contact the liquidator. Meetings of creditors are normally convened only at the beginning and the end of the liquidation. Creditors may demand a meeting of creditors if they constitute 10% in value of the creditors as a whole.

How can I help the liquidator to achieve the best possible outcome for creditors?

The unsecured creditors can form a liquidation committee to help the liquidator.

You should also tell the liquidator if you believe that the company has assets, income or business interests that the directors have not disclosed, or if you think you may have any information that might be useful to the liquidator.

Can the unsecured creditors form a liquidation committee?

Yes. A liquidation committee may be appointed at a meeting of creditors and must consist of at least three and not more than five creditors. The liquidation committee receives reports from the liquidator and may meet periodically. It assists the liquidator, approves his remuneration and sanctions the exercise of some of his
powers.

Liquidation committee members are not paid, but will receive their reasonable travelling expenses as a cost of the liquidation.

How is the liquidator's fee determined?

The liquidation committee (if there is one) or the creditors agree the liquidator's fee, failing which it will be  determined in accordance with a statutory scale or fixed by the court. Although the fee can be fixed as a percentage of the assets realised or distributed (or both), it is normally based on the following factors: the time properly spent by the liquidator and his staff; the complexity of the case; any exceptional responsibility borne by the liquidator; the effectiveness with which the liquidator carries out his duties; and the value and nature of the company's assets.

Creditors may demand a meeting of creditors if they constitute 10% in value of the creditors as a whole R3 is the UK’s leading trade association for licensed insolvency practitioners and business recovery professionals. R3 does not license or discipline its members; this is the responsibility of the practitioner’s regulatory body. The regulatory bodies are:
The Association of Chartered Certified Accountants
Tel: 020 7396 7000 www.accaglobal.com
The Institute of Chartered Accountants in England and Wales
Tel: 020 7920 8100 www.icaew.co.uk
The Institute of Chartered Accountants in Ireland
Tel: 00 353 1 637 7200 www.icai.ie
The Institute of Chartered Accountants of Scotland
Tel: 0131 347 0100 www.icas.org.uk
The Insolvency Practitioners Association
Tel: 020 7623 5108 www.ipa.uk.com
The Law Society of England and Wales
Tel: 020 7242 1222 www.lawsoc.org.uk
The Law Society of Northern Ireland
Tel: 028 9023 1614 www.lawsoc-ni.org
The Law Society of Scotland
Tel: 0131 226 7411 www.lawscot.org.uk
The Insolvency Service
Tel: 020 7291 6895 www.insolvency.gov.uk

Article Courtesy: http://www.r3.org.uk/media/documents/publications/professional/Creditors_CL.pdf
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