The Statement of Proposals from PWC reveals that bank pulled plug before HMRC served winding-up order
The Statement of Proposals from PWC has revealed that contrary to the publicity, HMRC didn’t actually serve a winding-up order which caused the administrators to be brought in. The £58 million turnover company went into administration on October 22, but the report reveals that PWC had been in discussion since early summer with WR’s parent company Huurre Group and Icelandic bank Kaupthing.
PWC said discussions had been initiated because of the ‘difficult trading conditions’ which had led to a £1.5 million funding call to cover HMRC’s demands and amidst ‘some concerns that the underlying financial position and profitability may not be appropriately and fully reflected.’
It said that although HMRC had issued a winding up order, the company had secured an additional £2.5 million from Kaupthing in early September, subject to further funder approval while a buyer was sought. However it emerged that the company needed another £2 million to fund a sale process and it was decided by Kaupthing not to provide that further funding. Thus the bank withdrew before HMRC served the winding-up order.