Creditors expecting any recompense out of Berkeley Berry Birch look set to be disappointed, with only 8.9p in the pound likely to be recovered.
Administrators PricewaterhouseCoopers’ latest update is a blow to creditors, who were told in April that they were likely to get 13p in the pound. Most had been hoping for 20p in the pound.
PwC’s fee has been set at £199,467.01 for 1,062.85 hours at an average hourly rate of £184.84. This includes £71,265.87 already paid out to cover its remuneration.
PwC is currently administering BBB Group Support Services and is set to recover net cash of £137,236.25 from the subsidiary which, after PwC’s fees, would leave only £9,035.11 to be shared between creditors. The biggest creditor, Berry Birch & Noble staff pension fund, of which GP Noble is the trustee, is owed £11.2m.
GPN managing director Graham Pitcher says the 8.9p figure could yet rise as more cash could be realised from other BBB subsidiaries.
He says: “These groups are commercial organisations so I understand they need to charge these amounts. We will not know how much we might receive for at least another year.”
PwC spokeswoman Stephanie Howel says: “Fees have to be agreed by the creditors committee before they are taken and this is only a six-month update.”