RE: 1.75p/share possible5 Apr 2024 09:47
Aklee,
While that is correct, shareholders do rank last, the PLC, the company you have shares in is not in administration in this case. It is a subsidiary of the PLC, MDL (Made.com Design ltd), that is. This company structure changes things significantly for shareholders and even though shareholders rank last, the PLC has no significant creditors or payments to make.
Also note that the PLC is actually the largest unsecured creditor of MDL (With over 50% of total monies owed, circa £87m), so will get a chunk of cash (if anything is left over - current estimate of 1.6% puts this figure at circa £1.4m, or 0.35p/share).
The last accounts viewable on companies house show that the PLC has £5,803,990.78 of cash in the bank as of Jan 2024. They have no significant outgoings, no creditors to pay so they only payments that will need to be paid will as part of the liquidation process. During Jan 23 - 24, this amounted to circa £125K.
According to the declaration of solvency their best estimates of cash left at the end of the process, when the PLC entered the MVL (Members voluntary liquidation), was £5,659,997. Trade creditors settled for approximately 50% of the total owed, and the cash is now in an interest bearing account hence the slightly higher figure of cash in the bank at Jan 24.
It is, therefore, highly unlikely that the cash left for shareholders will be under the original estimate of circa £5.66M as the remaining cost of the liquidation should amount to less than £150K as there is very little for the liquidators to do. Therefore, shareholders should receive at least 1.4p/share. Note, that this 1.4p excludes any payment as a creditor of MDL, so the actual figure paid to shareholders is likely to be higher than this.
The company structure has, somewhat, saved investors here and will provide them with something. Although for most, the payment of 1.4-1.75p will still result in a massive loss. But the figures the company have provided, indicate the payment will be higher, not lower, than the 1p originally stated.