Savage Diamond Blue Logistics

I received a document which is titled

“Financial Information to Creditors and Members of Savage Blue Limited

Pursuant to Statement of Insolvency Practice 6”

The front page has a statement signed by Graham Wright (Director). “I confirm that the contents of this report have been prepared from information provided by me and that they are true to the best of my knowledge and belief”. It looks like the toytown dictionary has been used again. True!!!

• I have a number of issues with this document; I resigned as a director on 3^rd November 2017. I was made redundant, I didn’t resign. Where is the paperwork to say that I resigned?
• Administrative expenses increased from 166,273 to 239,275 in a single year. Why? Where did these additional costs come from? In the same period, sales were only slightly down.
• The accounts were approved by the board. No they weren’t. Board meetings? I think not. The were only approved by Graham and/or Donna.
• Since incorporation, the Company has grown year on year. Why then a sudden loss and liquidation?
•  A new contract was due to be agreed with DHL in October 2017. No it wasn’t you were resigning the routes.
• Unbeknown, here’s that word again.  I’ve already covered this.
• Revision to the new contract offered by DHL, whereby a 33% reduction was offered. Not vindictive? 33% reduction sounds very vindictive to me. However, why would ABG take over these routes if they weren’t profitable? Unless……  they were offered a different rate. However, Why did a proposed rate change in October 2017 affect the profit and loss for that year.
• If the Company had tendered for this contract at the reduced rate, this would have led to serious cash flow problems. Would have, not did, because the contract was lost to ABG.
•  “During the notice period….the former director persisted in submitting further complaints”. Persisted and further, that toytown dictionary got some hammer, didn’t it?. One complaint, One, which but of one can’t they understand?
• The Company had no alternative but to cease trading on 31^st October 2017. Why? Savage Blue had always made a profit, the payment from DHL when it came in halfway through the next month was always, in effect cash in hand as all the bills/wages had been paid.
• The Director advised that the Franchise fee related to the contract with DHL. Did it really Graham? Savage Blue a franchise of DHL?

Roll up all my observations and have a guess what my opinion is? The clue is in the last observation. I believe that the set-up and operating costs of Diamond Logistics were put through Savage Blue’s accounts. The accounts on Companies House website confirm the profitability of Savage Blue up until the start of Diamond Logistics. This would explain the rise in administrative expenses of £73,002. Franchise fees, building costs, electric, gas, wages, etc.

If providing false information to an Employment Tribunal is perjury. What is providing false information to the liquidators?