A 6 year ban has been handed out to the Company Director named in this case for abusing a Lloyds Bank BBL.
Between 22 May 2020 to 2 September 2020, Mr Kyle Paul Thomas (“Mr Thomas”) caused payments totalling £20,504.24 to be made from Royston News Ltd’s (“RNL”) bank account for the benefit of a connected company of which Mr Thomas was sole director and shareholder.
These payments were to the detriment of creditors and made at a time when Mr Thomas knew or ought to have known that RNL was insolvent.
In that:
- Mr Thomas has stated that RNL commenced to trade on 03 March 2019 and that bank loans fell into arrears “within the first 6 months” of trading.
- Mr Thomas has confirmed that RNL’s accounts to 31 August 2019 were not professionally prepared. They record a marginally solvent position, with net assets of £2,414.
- The prepared accounts fail to include known loan and finance creditors of at least £16,606. Had these liabilities been included the balance sheet would have shown an insolvent position.
- Mr Thomas sought legal advice in November 2019 following the obtaining of a second loan from a Finance company, which “added extra pressure on the Company’s cash flow as the resulting repayments were higher than was originally anticipated and budgeted for”.
- RNL’s bank statements records the final payment to one finance company being made on 18 April 2020 with no further payments being made after this date.
- The Company’s Statement of Affairs record that £16,605.22 remained outstanding to that creditor at liquidation.
- Mr Thomas was the authorised signatory to RNL’s bank account.
- A Bounce Back Loan was received into RNL’s bank account on 5 May 2020.
- Immediately prior to receipt, the account balance was overdrawn in the sum of £5,514.24.
- Between 22 May 2020 and 2 September 2020, Mr Thomas made payments form the company bank account to the total sum of £20,504.24 for the benefit of a connected company.
- RNL’s creditors increased by £69,398 between the accounts dated 31 August 2019 and those recorded in the Statement of Affairs at liquidation.
- This amount includes the loan and finances creditors of £16,606 that was omitted from the accounts. RNL’s Statement of Affairs records a deficiency as regards to members in the sum of £70,320.52 on liquidation.
