Here are the details of this case.
6 Year Ban
On 13 October 2020, Jordana Imogen Lynch (“Ms Lynch”) caused Middle East UK Advertising Ltd (“Advertising”) to breach the conditions of a Coronavirus Business Interruption Loan (“CBIL”) by failing to use the CBIL funds of £92,000 received to repay a Bounce Back Loan (“BBL”) facility of £50,000 received on 8 May 2020, as was required by the CBIL terms and conditions
In that:
- Following an application by Ms Lynch, Advertising obtained a BBL of £50,000 on 04 May 2020, which was paid into Advertising’s bank account on 08 May 2020.
- On 13 October 2020, Ms Lynch applied for a CBIL with another financial institution on behalf of Advertising.
- Ms Lynch signed a declaration that Advertising met the eligibility criteria of the loan and that Advertising did not have an existing loan under the Bounce Back Loan Scheme, the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme(CLBILS) or the Covid Corporate Financing Facility (CCFF) or, if it did, the CBIL Loan would be used to repay any of existing facilities in full.
- Ms Lynch was informed on 20 October 2020 by the CBIL provider that Advertising would need to settle the BBL after the CBIL was drawn down.
- On 4 November 2020, the company received £92,000 into its bank account in relation to the CBIL.
- Advertising failed to repay the existing BBL after the CBIL was drawn down.
- On 1 March 2023, Advertising entered Creditors Voluntary Liquidation. At liquidation, Advertising had liabilities totalling £177,879 of which £44,280 is in respect of the BBL and £87,316 is in respect of the CBIL.
6 Year Ban
On 13 October 2020, Anand Shanker Hira (“Mr Hira”) caused/and or allowed Middle East UK Advertising Ltd (“Advertising”) to breach the conditions of a Coronavirus Business Interruption Loan (“CBIL”) by failing to use the CBIL funds of £92,000 received to repay a Bounce Back Loan (“BBL”) facility of £50,000 received on 8 May 2020, as was required by the CBIL terms and conditions.
In that:
- Following an application by a co-director, Advertising obtained a BBL of £50,000 on 04 May 2020, which was paid into Advertising’s bank account on 08 May 2020.
- On 13 October 2020, the co-director applied for a CBIL with another financial institution on behalf of Advertising.
- The co-director signed a declaration that Advertising met the eligibility criteria of the loan and that Advertising did not have an existing loan under the Bounce Back Loan Scheme, the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme(CLBILS) or the Covid Corporate Financing Facility (CCFF) or, if it did, the CBIL Loan would be used to repay any of existing facilities in full.
- On 19 October 2020, Mr Hira informed the CBIL provider that he had informed the co-director of the importance of repaying the BBL upon receipt of the CBIL.
- The co-director was informed on 20 October 2020 by the CBIL provider that Advertising would need to settle the BBL after the CBIL was drawn down.
- On 4 November 2020, the company received £92,000 into its bank account in relation to the CBIL. Advertising failed to repay the existing BBL after the CBIL was drawn down.
- On 1 March 2023, Advertising entered Creditors Voluntary Liquidation.
- At liquidation, Advertising had liabilities totalling £177,879 of which £44,280 is in respect of the BBL and £87,316 is in respect of the CBIL.
