Just one Director ban to report on today and as you will see, it didn’t take the Insolvency Practitioner very long to work out the Director named had over-egged his turnover to get a BBL.
On 21 July 2020 Abid Iqbal (“Mr Iqbal”) caused Retro BM Spares Ltd (“the Company”) to obtain a Government backed Bounce Back Loan (“BBL”) totalling £50,000 which is more than the company was eligible for.
In that:
- The BBL Scheme enabled a business to obtain a BBL of up to 25% of a business’s turnover (for the calendar year 2019) up to a maximum amount of £50,000.
- The BBL was to be used for the sole economic benefit of the Company. Retro BM Spares Ltd was incorporated on 23 March 2015
- Filed accounts for the year ending 31 March 2020 show turnover of £62,508.
- The same accounts show turnover for year ending 31 March 2019 as £59,411.
- Mr Iqbal applied for a BBL from Lloyds Bank on 21 July 2020 stating that the Company’s turnover was £200,000
- The Company was eligible for a maximum BBL of £15,627.
- By applying for, and securing, a BBL of £50,000, the Company obtained £34,373 more BBL funding than it was entitled to.
- The Company received the BBL totalling £50,000 into its bank account on 23 July 2020.
- The statement of affairs shows that £52,390 remained outstanding to Lloyds at Liquidation
