Here are the details of another dodgy Metro Bank Bounce Back Loan.
On 8 June 2020, Abdulkareem Hashim Ali Al Ibrahim (“Mr Ibrahim) caused Apex Dining Ltd (“Apex”) to breach the terms and conditions of the Bounce Back Loan (“BBL”) scheme by overstating its turnover on the BBL application, as a result Apex received £26,002 more than it was entitled to from the BBL scheme.
Following receipt of £48,000 BBL monies, £28,700 of those monies were used for purposes that did not provide economic benefit to Apex.
In that:
- Under the BBL scheme businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of turnover.
- The turnover figure was self-certified by the applicant. The turnover figure required was that for the calendar year 2019, or where a business was established after 01 January 2019 it is their estimated turnover.
- Apex was incorporated on 2 October 2018. On 8 June 2020, Mr Ibrahim applied for a BBL of £48,000 on behalf of Apex declaring that its turnover for the calendar year 2019, or estimated annual turnover was £201,000.
- Accounts for Apex for the year ending 31 October 2019, record turnover for the trading period to be £87,993. Accounts for Apex for the year ending 31 October 2020, record turnover for the trading period to be £57,546.
- Mr Ibrahim states the turnover for the calendar year 2019 was £75,000.
- By making an application to borrow £48,000, Apex received £26,002 more than it was entitled to.
- On 23 July 2020 Apex received the BBL funds of £48,000 into its bank account.
- Between 24 July 2020 and 9 August 2020 sums totalling £28,700 were transferred to Mr Ibrahim.
- These payments did not provide economic benefit to Apex.
- Apex entered into Creditors Voluntary liquidation on 20 December 2022.
- Total liabilities at liquidation amounted to £163,760, of which £48,000 was the amount owed in respect of the BBL.
