We were appointed Joint Administrators of Nektan Gibraltar Limited (NGL), which was a wholly owned subsidiary of Nektan plc, an AIM listed company registered in Gibraltar and the main operating company of the Group.

NGL provided a white label B2C service to gaming operators, licensed by the UK Gambling Commission (UKGC) and the Gibraltar Licensing Authority.

The business had been impacted by reduced turnover & margins and increased taxation and compliance costs which led to the accrual of in excess of £5million in relation to unpaid Remote Gaming Duty (“RGD”) due to HMRC. The underlying trading issues meant it unlikely this debt could be repaid under the existing structure and, given that HMRC have the ability to seek the withdrawal of the UKGC operating licence for non-payment of duties, could have led to the collapse of the parent company Nektan plc.

As the culmination of a wider Group restructuring, NGL sought the protection of an administration to enable a transfer of the business without affecting the customers and to provide the best possible outcome for all stakeholders. Significantly, this administration appointment made history by being the first time that a Gibraltar registered company had been subject to an Administration Order in the jurisdiction of England and Wales. 

We were appointed Joint Administrators of Full Circle Asset Management Limited following litigation against the Company. The investment management firm had circa £72 million under management on behalf of 272 clients.

It was necessary for the administrators to trade the business for in excess of 12 months, which enabled the successful sale of the Company’s client base to Charles Stanley & Co. Limited, one of the UK’s leading wealth management companies.

Following the issuing of a regulatory penalty by the Phone Service Authority (“PSA”) in December 2016, the company (“DKC”) during the course of 2017 was struck off the register. The PSA believed that a restoration would not be a viable option as the directors retained no apparent assets.

Over the next 6 months, the investigation team conducted an in-depth research into the Directors and continued to monitor their profiles. In mid-2018 the team successfully identified a property which had been purchased by the Directors some considerable time after the PSA initial assessment. This property had apparently been purchased for cash.
Following receipt of this information a strategy was put together with the solicitors representing the PSA and the proposal was put forward that the PSA should apply to have the company restored. Following the successful restoration of DKC, it was compulsorily wound up.

We were appointed as Liquidators and we obtained copy documents from the Regulator in relation to a fine handed down to DKC for breach of Regulations and upon which the Petition debt was based. The case involved a service marketed to the public the result of which caused numerous individuals to suffer losses.

We were able to identify different levels of service provider and the breaches of Regulations leading to the fine.  We noted large payments out of the account of DKC corresponding with timetable of the fine and traced those to a connected organisation.

A number of interviews were conducted which established potential claims for antecedent recoveries. Following the issuing of proceedings settlement negotiations were entered into which resulted in an agreed settlement.
This recovery should lead to a return to creditors of circa 60p in the £.

Following a routine regulatory inspection by the IPA, it was considered that the incumbent insolvency practitioner was not able to continue the management of their portfolio of cases.

The IPA inspector team had tried on several occasions to work with the insolvency practitioner to finalise the portfolio. Unfortunately voluntary all steps were unsuccessful and the IPA were left with no choice but to make an emergency application to replace the insolvency practitioner.

We were approached by the IPA to take on all corporate appointments on this emergency basis and without knowledge of the cases. An application was made and granted in the Court of session for all corporate cases to be transferred to us.

Following appointment we have sought to engage with the former insolvency practitioner for the delivery of the books and records of the practice in relation to the appointments as well as delivery of funds held. A failure to corporate has led to an application in the Sheriffs Court for an order to deliver up information. This has been partially adhered to in that books and records have now been delivered up. This is matter and the investigation into the cases remains ongoing.

In this matter it was essential that the appointments were taken in order that they could be progressed and creditors were not disenfranchised by the action of the former insolvency practitioner. Investigation work remains on going to consider if any further action was required against the former insolvency practitioner.

The Client Issue
Rambler Metals and Mining Plc is a UK stock market listed company with a copper mining operation in Newfoundland. The impact of Covid-19 on physical mining operations and a subsequent fall in the price of copper due to the economic slow-down caused by the pandemic had rendered the company in a difficult financial position. At the time of our appointment the company had creditors of US$18 million.

Our Solution
We were appointed to investigate and advise on a restructuring of the company debt to meet the requirements of the funders and protect the existing investment of the company shareholders. Having reviewed the company finances alongside the CFO we proposed a restructuring of the existing debt and successfully negotiated terms with the majority of the creditors which brought financial stability and enabled a subsequent fundraising.

The Outcome
The company was able to secure a US$13million refinancing package without the need for a formal insolvency process that would have significantly impacted on the investment held and secured the long-term future of the company.

The Client Issue
In Zambia we were engaged by Consolidated Nickel Mines Ltd, the UK Shareholding Company of a mining operation in Zambia to investigate the overall debt position and consider the financial management controls of the company. Shareholders had concerns about systemic financial failings on site. Our Solution

At short notice, our investigation team attended site to execute a thorough review of the financial operation. The level of mismanagement uncovered by SKSi resulted in preparing and delivering plans for the management of significant debt levels. Reporting to the shareholders on the issues uncovered resulted in taking control of day-to-day financial management from the incumbent team.

The Outcome
Working with a new Senior Management Team, SKSi revised and implement new financial Standard Operating Procedures and ensured proper controls were instigated, so allowing for the continued support from investors enabling a financial restructuring which provided long-term financial stability for the mine.

The Client Issue
Black Dragon operate across 3 geographical locations (Australia, Europe & Canada). The departure of their CFO led to the appointment of SKS to assist with a review of the accounting processes and the transition to the current reporting set up.

The initial phase was quite challenging due to the reporting requirements, including quarterly cash flow, half year reporting and restatement of the FY19 Annual Report to both the ASX and Sedar.

The Outcome
All reports and financial statements were prepared ahead of schedule and within budget.

Gabriel Chiappini, CFO & Company Secretary commented;

“With the SKS team assisting me, the transition went extremely well, and we now have a professional set up. As a result, we have streamlined our reporting function which has improved our internal decision making. In addition, we are saving nearly 40% compared to our previous finance team costs. I could not have managed nor taken on this new role without SKS and as a result, I can highly recommend them for your requirements.”

“Mark Phillips and the SKSi team are true experts. Their passion to genuinely understand a business as well as get to know the people who operate it enables them to build a multi-faceted approach in order to achieve the best results over short, mid or long term projects. I am privileged to have worked with them and am delighted to recommend them.”

Warren Jacobs CEO, Betable Group.

The following email was sent to SKSi Director Sam Talby by a client :

“Dear Sam,

I just wanted to write to you personally in order to thank you and your team in Bristol for the superb service and consideration we have received.

These are extremely uncertain ( and in many ways unprecedented ) times. The decision to place our family business into liquidation - a company that we had built up over several decades - was not a decision into which we entered lightly. In a world of internet experts and “do it yourself” video tutorials, I can only say that finding a proper licensed insolvency practitioner with your experience and know-how will rank as one of the best commercial decisions we ever made in our long trading history. I really mean this.

We came to talk to you at a time of huge personal stress, pressure and heartache. You were there to talk us calmly through the process and to lay out a proper roadmap. A roadmap where we could see beyond all of the immediate worries and where we could ensure the best possible outcome for the business and its creditors.

You were there to give us that day-to-day help and guidance when we needed it most. The timetable that you set out at the beginning was brilliant and your team met every single one of those dates exactly as promised and to the letter. There were no hidden costs and no nasty surprises at any point because you had been absolutely transparent from day one.

And I must also commend you for the way you conducted meetings in a Covid secure manner on those occasions when we needed to sign documentation and discuss details on a face-to-face ( or rather mask to mask ) basis. Your professionalism and courtesy has enabled us to move on with our lives through what would normally have been an extremely distressing and difficult process. Your team have made that process far more stress-free than we could possibly have imagined in those initial dark days.

I don’t want to embarrass you further by thanking you too for the little things that you did over and above our initial arrangement. You took every phone call we ever made to you - even at weekends. You were always able to provide a calm overview and reduce our anxiety with extra support and advice.

So sincere thanks again Sam to you and the team. If you ever need me to recommend you to other businesses who find themselves in the same position as we then I would do this wholeheartedly and without reservation.

With very best wishes,

PM, Director of a Ceramics Company trading in both UK and Europe. 

Testimonials sent to Shona Maxwell, Personal Insolvency Scotland

"I approached Shona in 2018 with financial difficulties and asked if they could help me, which they did. SKSi have been very helpful and discreet and have taken care of me and all my affairs professionally. I have been, and remain, very happy with their service."

George McCafferty, Forfar.

"I could not see light at the end of the tunnel until you shone a torch for me. Over-whelmed by debt, I was at my wit`s end till I met Shona, I cannot thank you enough."

E.

"Shona Maxwell has been exceptional in a time of difficult personal and financial circumstances offering guidance and support throughout my sequestration."

Elizabeth, Glasgow.