STATEMENT OF ADMINISTRATOR'S PROPOSAL
The deficit is so mind-numbingly huge for this ‘unlawful’ operation. Certainly the most obvious question is “How was this allowed to happen?” and for this insolvent and unlawful company to hold people and planet to ransom for so long?
Clearly the shareholders (pages 37-40 ) have lost everything and presumably their shareholder loans too.
Privilege Loans (£37 million) have jointly and severally been guaranteed by Leon Mekitarian and William Luttman-Johnson. It is beyond belief that William Luttman-Johnson would have risked losing everything by signing these guarantees.
The administrator seems to say that the accounts are incomplete, inter-company balances don’t reconcile and basically the whole situation has been out of control for months, with the company existing hand to mouth.