INSOLVENCY SERVICE
News Release (Ins/Coms/12) issued by The Government News Network on
16 June 2008
A successor
building company to those wound up on grounds of public interest
earlier this year (see Note 4) has been ordered into liquidation
in the High Court in the public interest following an
investigation by Companies Investigation Branch (CIB) of the
Insolvency Service.
As was the case with the above-mentioned liquidated companies,
construction work was started by the company but then deliberately abandoned.
The grounds for the winding up were that the company conducted
its business with a want of commercial probity, had operated
without insurance, had failed to co-operate with the enquiry, had
inadequate accounting records and had failed to register for Value
Added Tax.
In one contract that the company failed to disclose to the
investigation it was nevertheless discovered that after receiving
payment of £27,000, the company failed to perform the work
properly leaving behind a trail of destruction.
High Court Registrar Mr Nichols agreed with the
investigator's findings. The Registrar said this was a case
of insufficient records to explain the true financial position of
the company and non-co-operation with the enquiry which, taking
into account the failure to perform contracts and the considerable
amount of evidence showing the commercial standards of the company
fell below the standards of behaviour reasonably expected, ordered
the company into liquidation.
Notes to Editors:
1. Midland Construction Limited was incorporated on 7 February
2006. The registered office of the company until 24 January 2008
was at 25 Bodnam Road, Springbank, Cheltenham, Gloucestershire,
GL51 OWE and thereafter at Suite 307, Eagle Tower, Montpelier
Drive, Cheltenham, Gloucestershire, GL50 1TA. The company's
initial sole director was Mr Pablo Antonio Hortiguela who resigned
on 20 September 2007 whereupon Mr James Cornelius Killick was
appointed director. The company secretary is HCS Secretarial
Limited of 44 Upper Belgrave Road, Clifton, Bristol, BS8 2XN.
2. The petition to wind up the company in the public interest was
presented on 25 April 2008 under the provisions of section 124A of
the Insolvency Act 1986 following confidential enquiries carried
out by Companies Investigation Branch (CIB) under the provisions
of section 447 of the Companies Act 1985, as amended.
3. The company was ordered into liquidation on 11 June 2008.
4. Mr Killick has previously been connected with the operation of
Crestmere Construction Limited and Construction Management
Development Limited, two building companies which, amongst others,
were wound up on public interest grounds on 20 February 2008.
For further information see News Release: Ins/Coms/62 - issued on
21 February 2008.
5. The company was the successor construction company.
6. Companies Investigation Branch, part of the Insolvency
Service, carries out confidential enquiries on behalf of the
Secretary of State for Business, Enterprise & Regulatory
Reform (BERR).
7. 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.
8. All public enquiries concerning the affairs of the company
(and the earlier liquidations) should be made to: The Official
Receiver, Public Interest Unit, 21
Bloomsbury Street, London, WC1B 3SS, Tel No: 020 7637 1110.
Email: piu.or@insolvency.gsi.gov.uk .
9. Further information about the work of The Insolvency Service
is available from http://www.insolvency.gov.uk
Press Notice