Be interested myself to hear how this goes Mark!
all the best

Hi Hamish

It will be interesting as it doesn't follow normal process. It will either be looked at and dealt with super efficiently or sit in someone's tray till the 5 weeks are up!

Mark

Whats the expected return?

Paul

Hi Paul

1.3p in the £. This would certainly fail a Trust Deed on current provisions, however it probably has a greater than 70% chance of going through ( always the optimist!)

Mark

Being really cheeky here Mark but how much as a p/£ are the total fees likely to be?

Paul

Hi Paul

I don't have an issue with fees as they now work on the scale we are provided with over the 4 years.

The case involves 3 properties in Ireland and 2 Ltd companies and other Personal Guarantees etc, so there will be a crossover rather than a normal standard Trust Deed. Fees have been stated at initial admin fee of £2,500 plus realisations for the 4 years at £4k, although you need to take in the outlays in this case which will be over £1000.

Mark

Definitely a bit of a different case. Good luck with it.

Paul

It's ceratinly interesting. A bit of a hybrid between a personal Trust Deed and a corporate case minus all the glamour of the Deloittes/KPMG private jet to Ireland cases. Ha!

Although if you look at it, if they do not agree, then the Trust Deed fails and the guy is happy to proceed with sequestration which will reduce the dividend to creditors as the outlays will be way above the normal TD outlays.

Mark

ok, I'll bite, can't resist.

1.3p in the pound? I wish!

if so my payments would only be about £16 per month for 3 years.

one can but dream, I suppose.

Hi rodney

Unfortunately the difference is that with debts of £1,400,000 the repayment amount to creditors will be around £18,200 or thereabouts so closer to £510 per month for 3 years (although this case is 4 years)

See, you were luckier than you thought!

Mark

Sounds like an interesting case Mark.

Regards the dividend, it got me thinking back before the days of TIX and IVA Watch with a minimum criteria where Trustees could propose any dividend they wanted to creditors and rarely would they object to it.

You'll need to let us know how the case gets on.

A wee update. Received one objection in the 5 week period which was insufficient for it to fail.

So it goes to show that even with debts in excess of £1,400,000 and if structured properly, a Trust Deed can still work.

Mark

That's quite a thing Mark!

I'm sure that your client is very pleased?

I was surprised as at first the claim represented more than a third. However they included the full mortgage, but did not deduct the value of the property! So this brought things back to a more favourable position.

All in all, it worked out pretty good.

Mark