Read on for the Insolvency Practitioners comments and an overview of the case.
Insolvency Practitioners Comments
Overview of the Case
Nicholas John Epps (“Mr Epps”) caused Astoria Property Services Limited (“APS”) to breach the terms of the Bounce Back Loan (“BBL”) by overstating its turnover on the BBL application.
As a result APS obtained a loan of £16,250, which was more than it was entitled to receive.
In that:
- The BBL scheme allowed businesses to apply for a BBL if they were engaged in trading or commercial activity in the UK at the date of the application, were carrying on business on 01 March 2020 and had been adversely affected by Covid.
- A business could receive a loan of up to 25% of their annual turnover for the 2019 calendar year, which the applicant would self-certify when completing the BBL application.
- APS was incorporated on 22 January 2016.
- The company accounts for period ending 31 January 2019 declare a turnover of £37,511.
- The company accounts for period ending 31 January 2020 declare a turnover of £33,457.
- On 29 May 2020, APS received a BBL of £16,250 to which it was not fully entitled to, after Mr Epps declared in the BBL application that the turnover for the 2019 calendar year was £65,000. APS entered Creditors’ Voluntary Liquidation on 7 December 2022.
- At liquidation, APS owed £16,250, the full amount being owed to the Bank in respect of the BBL.
