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FINAL
SUMMARY
There is a
pressing need for the companies to enter a formal insolvency procedure
so that debts can be collected in and the assets of the companies
can be dealt with in an orderly manner.
The lack of banking facilities means that the companies are unable
to bank their own receivables and they are unable to pay their debts
as and when they fall due. The nature of the business of the companies
largely rests on the confidence that the companies enjoy in attracting
and dealing with investors monies. This confidence is fast evaporating
due to the recent adverse publicity.
We believe that the appointment of licensed insolvency practitioners
will assist in maintaining confidence and producing a better result
for creditors.
As licensed insolvency practitioners we forsee no difficulty with
obtaining banking facilities for the administrators with HSBC Bank
Plc.
Albeit that the businesses of the companies are somewhat complex
and we have not had an opportunity to review the businesses in detail
we believe that the making of an Administration Order is likely
to result in a better realisation of assets than in a winding up
and/or there is a real prospect of the companies surviving.
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