FRP was appointed as the replacement officeholder – with the support of the Pension Protection Fund (PPF) – to conduct a large-scale, high-profile investigation into the insolvency and recent financial history of a major UK retailer.
The business was part of a larger group of companies, some of which were subject to separate insolvency proceedings. The company had a historic property portfolio of more than 200 leasehold and freehold properties, with potential claims of more than £400 million.
The FRP team carried out a detailed forensic collation and discovery of electronic and hard copy records, extensive interviews, and third-party requests for information from numerous sources.
A robust review of financial records, management decisions and historic dealings with advisers enabled the team to establish a picture of financial history and trace material transactions and key events. The investigations were carried out with ongoing, regular liaison and co-operation with the PPF to ensure key stakeholder management.
Our investigations led to the successful conclusion of landlord claims, achieving a mitigation of unsecured liabilities of more than £250 million. We were also able to reach agreement with a floating charge creditor, resulting in the release of charge and of more than £30 million from reserves into funds available for unsecured creditors.
Substantial investigations are continuing in this case, with further avenues of recovery being identified and pursued.
FRP’s investigations led to a mitigation of unsecured liabilities of more than £250 million