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Two car dealership directors are disqualified over missing motors

News Release issued by the COI News Distribution Service on 25 November 2011

Two directors of a used car dealership in Northwich, Cheshire have been disqualified for eight years each by Crewe County Court following an investigation by The Insolvency Service’s Company Investigation team in Manchester.

Jonathan Crawford and John Ryan (also known as John Crawford) both of Ollershaw Lane, Northwich, , were disqualified on 7 November 2011 from managing or controlling a company or being a director until 2019 by District Judge Wallace.

Both men were the only directors of Premier Car Credit Limited, which traded from premises at Station Road, Northwich. The company was placed into administration in March 2009, with an estimated deficiency of £1,339,102. Investigators were also unable to find any of the cars which were listed in the company’s books.

The court found that: -

The directors failed to ensure that the company maintained, preserved, or delivered adequate accounting records for Premier, and that they failed to satisfactorily account for the disposal of the company’s stock and/or its sale proceeds.

As a result investigators were unable to:

· Trace the sale or disposal of 73 vehicles in stock with a value of £498,821.

· Verify an apparent shortfall in sale proceeds of around £530,920.

· Verify the purpose of cash withdrawals totalling £195,490 made between 01 November 2008 and 10 March 2009.

The directors caused the company to enter into transactions which were to the detriment of its creditors when they knew or ought to have known that the company was insolvent. In fact, John Ryan had sought insolvency advice on or around 23 February 2009.

Between 23 February 2009 and the date of administration £217,587 was withdrawn from Premier’s bank accounts.

Claire Entwistle, Director of Company Investigations North, said: -

“The directors of this company failed to keep proper accounting records, which meant that it was not possible for the Administrators to ascertain what had happened to the company’s assets in the run up to insolvency. Whilst this hampered the Administrators in taking any action against the directors for the benefit of creditors, the public may be reassured that this type of behaviour will meet with robust action from The Insolvency Service.”

Ends

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Notes to Editors

1. Premier Car Credit Limited was incorporated on 7 January 2005 and traded from premises in Northwich. The directors of the company were Jonathan Crawford and John Ryan, also known as John Crawford. The company was placed into Administration on 10 March 2009.

2. Premier Car Credit Limited was wound up in the High Court on 17 February 2010 following a petition presented on 23 November 2009.

3. The Insolvency Service administers the insolvency regime investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice. Further information about the work of The Insolvency Service is available from www.bis.gov.uk/insolvency

4. Media Enquiries should be directed to:

Ade Daramy, Press Officer on 020 7596 6187

Contacts:

Ade Daramy
Phone: 020 7596 6187
ade.daramy@insolvency.gsi.gov.uk