DELOITTE ADMINISTRATORS have charged more than £500,000 for their work on the pre-pack sale of collapsed listed firm RSM Tenon, to Baker Tilly.
RSM Tenon’s parent company entered administration on 22 August with practitioners Matt Smith, Nick Edwards and Clare Boardman, of Deloitte, appointed joint administrators of the public limited company, and its tax division Premier Strategies Limited (PSL).
On appointment the administrators immediately sold the trading entities to Baker Tilly in a pre-pack deal.
According to the six month progress report the remuneration for the administration so far is £588,782. This is made up of £378,186 for 681 hours for the PLC, with an average charge out of £556 from their appointment to 21 February. It also includes £210,596 for 399 hours of work at an average of £528 per hour for PSL.
Because there was no creditor committee the remuneration was arranged with the secured creditor to be time costs-based
Other professional costs include £27,677 for legal fees, from firm CMS, related to the PLC and £15,586 for those related to PSL.
The PLC has £971,618 left in its coffers after legal fees and bank charges, with PSL left with £80,000.
The administrators sold the PLC and its key trading subsidiaries to Baker Tilly for £1m with the aggregate transaction value of £30m and no other realizable assets. Out of that £30m, £1m was cash consideration, £22m settlement of secured debt, and a £7m working capital adjustment.
The client database was sold to Baker Tilly on 8 October for £80,000 as a cash consideration.
According to the report there will not be sufficient realisations for the secured creditors, therefore no dividend will be paid to the unsecured creditors. PLC shareholders will also receive no return on their holdings.
It is estimated that secured creditors were owed £86m at the date of the administrators’ appointment and unsecured creditors are owed about £1.6m, although client claims could result in a significant increase to the latter amount.
In a bid to keep administration costs down, future communications with creditors from the administrators, such as updates and progress reports, will be posted on the Deloitte website: www.deloitte.com/uk/rsmtenongroupplc.