Unsecured creditors of a collapsed payday lender must await the results of a legal investigation into the firm’s former chief executive to see if they will receive any money back.
Speed-E-Loans collapsed into administration on 28 June 2013 following an unsuccessful financial restructuring and the departure of chief executive Gary Miller-Cheevers, now a director at pawnbroker Albemarle & Bond.
The company’s loan book – valued at £1.9m – has been sold to a Croydon-based business called Safeloans for £50,000, facilitating a payment to Fluid Capital Japan Limited which held a fixed and floating charge over the assets of Speed-E-Loans.
However, administrators Accura Accountants have since instructed solicitors to investigate the possibility of recovering outstanding amounts owed to the company by Miller-Cheevers, which would be used to make a return to unsecured creditors.
“During the period (of insolvency) I have been made aware of outstanding amounts due to the company from the former director Mr Gary Miller-Cheevers,” said administrator Alan Simon in a statement.
“I have instructed solicitors to review the position with a view to any potential recoveries for the benefit of the company’s creditors. Unfortunately at the time of writing I am unable to disclose any further information in this regard as I do not want to prejudice the position.”
The revelations contradict a statement released by Speed-E-Loans last year, which said the debts owed to the business by Miller-Cheevers following his departure had been settled.
Unsecured creditors of Speed-E-Loans are currently owed around £10.2m, according to the administrator’s update.
To date, claims have been made for £3.16m of that total from 22 creditors, but there are still 31 creditors who are owed debts totalling £7.1m but have not made a claim.
Simon also revealed he has submitted a report on the conduct of the company’s directors to the Department for Business, Innovation & Skills (BIS), but did not disclose details due to the confidentiality of the report.
The administrators have charged £77,666.50 for their work on the case, of which £18,000 plus disbursements of £1,095 have been drawn.
Both Gary Miller-Cheevers and Albermarle & Bond have chosen not to comment on this story.
Credit Today has contacted the administrators and Safeloans for comment and will update the story should comment be forthcoming.
By Alex Cardno