Network Data ARs to lose £5m in commission
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In its administration proposals, Baker Tilly says that Network Data has secured debts of £3,856,440 owed to Bank of Scotland and that the Network Data director's report shows unsecured debts of £1,941,348.
Baker Tilly says it has had an estimated £5,172,836 of unsecured creditor claims but only £1,335,031 is listed as owed commission in the directors' report.
Baker Tilly assistant manager Robert Young says the disparity in unsecured claims is the result of differences between the administrator's report and the directors' report. He says: "In the future, we will be able to have a more exact number on unsecured claims."
A statement from Baker Tilly says: "We regret to advise that we do not anticipate a distribution to the unsecured creditors of Network Data Holdings."
Former AR, AnyMortgage principal Heather Furby, who is not a listed creditor but says she is owed money, says many more brokers are in a similar position.
Clocktower Mortgage principal Paul Halfyear, who says he is owed £2,937, believes this serves as a warning to other ARs whose commission is not ring-fenced by their network.
Baker Tilly says it is preparing to sell Network Data's HQ at Botleys Mansion, which is valued at £4.475m. This would pay off the secured debt plus staff costs.
The group owes the FSA £42,478. Other big creditors are listed as chief executive Richard Griffiths, who is owed £52,384, and directors Alex Cotton and David Blackmore, who are owed £17,851 and £15,381 respectively.
According to the report, there still remains £47, 721 in unpaid commission currently being held by providers. Baker Tilly says this will not be given dir- ectly to ARs as they are unsecured creditors.
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