The investigation after the Cornwall firm went bankrupt with huge debts

Investigations are underway after a plumbing business in Cornwall went bust with debts of more than £750,000. M&T Heating and Plumbing Services Ltd was established in 2007 but went into liquidation last May, with 10 workers losing their jobs.

A new progress report from liquidators at Brailey Hicks reveals that investigations are ongoing and there is unlikely to be cash on hand to pay more than £600,000 owed to unsecured creditors. The heating and air conditioning installer has left assets of £145,697 but still expects a shortfall to creditors.

Much of the debt is owed to the company’s own four directors, but Lloyds Bank is claiming £56,000, Sheffield’s Plumbase £133,291 and trade specialist Wolseley Group is claiming £47,576. Documents filed at Companies House say it is not known when the liquidation will end due to investigations, PlymouthLive reports.

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A confidential statutory report was submitted to the Insolvency Service as usual. But an initial assessment of whether there was anything that could lead to the cash being recovered for the benefit of creditors highlighted “matters which the liquidator felt merited further investigation”. The report said: “The liquidator will not disclose any details of the report as it could prejudice any recoveries.”

The company’s assets were sold for £14,000 and a VAT refund of £19,387 was recovered. But there were book debts of £77,931 and £14,544 of retained earnings.

But the liquidators were told there were disputes from debtors over the work not being completed and because he had to get another firm to complete the work, they would write off any debt owed. Lawyers are currently looking to see if any of the debts can be claimed.

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Ten workers were made redundant when the firm, which operated from the Moorland Trading Estate in Saltash, went into voluntary liquidation last year. They were owed £5,300, which was paid by the Redundancy Payments Office, which has yet to lodge a claim. There are expected to be pension contributions of £1,000 but the liquidators believe all these preferential claims will be paid.

A claim for £21,005 in unpaid tax has yet to be received, but even if it is, there may be enough cash to pay it. But unsecured creditors’ claims totaled £607,216 and could rise as proof of debt is still being received.

The liquidators’ report said: “It is anticipated that there will be no dividends available to unsecured creditors.”

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