Broker lead generator owes secured creditor Lloyds Bank approximately £1.8m, while claims from unsecured creditors total £1.9m.
Call Connection, which went into administration in July 2017, has had its administration period extended by a year to 13 July 2019.
In a document filed on Companies House, Call Connection’s joint administrators Martha Thompson and Colin Haig of accountancy firm BDO stated that the decision had been made with the consent of the company’s creditors.
Call Connection went into liquidation shortly before the collapse of broker Ignition Select, which has its registered office in the same building as Call Connection. The two are legally separate but both are majority owned by entrepreneur Graeme Kalbraier.
Uncertainty
In a separate notice of administrator’s progress report dated 9 February 2018, it was revealed that Call Connection director Kalbraier owes the firm £1.05m following a personal loan.
But according to the joint administrators Kalbraier has recently been declared bankrupt and they stated it was uncertain that the money would be recovered.
In addition, an entity owned by Kalbraier, Anglia Countrywide Management (ACM), owes Call Connection £2m.
However, ACM has since gone into voluntary liquidation and the report detailed that “the ability to recover any sums from ACM is uncertain”.
Creditors
According to the report, Call Connection owes its secured creditor Lloyds Bank approximately £1.8m. While a distribution will be paid to Lloyds, the administrators stated it will still “suffer a significant shortfall”.
Preferential creditors have filed claims totalling £161,966, primarily consisting of the Redundancy Payments Services’ claim against the company following payments made to former employees in respect of unpaid wages and holiday pay.
Meanwhile claims from unsecured creditors totalling £1.9m have been received.
The administrators estimated that after allowing for costs and claims from preferential creditors, the value of the company’s net property will be between nil and £200,000.
It added that there may be sufficient funds to “enable a small dividend distribution” to the unsecured creditors, however the timing and amount is uncertain.
The administrators also noted that a confidential statutory report had been sent to the Secretary of State, following their investigation of the company’s affairs.
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