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FRP Advisory update report received- As the FRP Advisory administration is officially terminated on November 20th 2022, the process has shifted into a new phase called liquidation (Creditors Voluntary Liquidation, or CVL). We have received an update on how things currently stand, which we will clarify below.
This new phase of investigation and asset recovery is still managed by the team at FRP Advisory.
Administration is typically utilised when there is a chance of saving a business which is currently experiencing high levels of financial or operational distress.\ Liquidation is often considered a more appropriate avenue for recouping debt and brings about the end of a company by selling -- or liquidating -- its assets before dissolving it entirely.
As a creditor you will notice no difference. Your documents have been submitted and accepted. They transfer automatically into the liquidation procedure.
This conversion from administration to liquidation is routine and legally correct.
It has no practical effect on ongoing matters whatsoever. The investigations (and any actions brought subsequently) are seamless and the same.
Whilst everyone involved would have preferred a swifter outcome in terms of fund retrieval, it can only be seen as positive that a firm as experienced as FRP Advisory would move forward into the liquidation at this stage.
This report is routine and legally required. As a strategic choice, a firm in FRP's position would generally prefer to publish the minimum information possible, as they will be aware that the target company could potentially be gleaning information that in the wrong hands could be used to thwart the efforts of the creditors.
FRP Advisory are therefore being professionally guarded with information about the status of investigations, as can be expected.
"we hope to be able to provide a more comprehensive update on our investigations in our next report to creditors, however at this stage in order not to prejudice our investigations we are unable to provide any further details."
As is usual, in even the most successful and fruitful administrations and liquidations, the language used by FRP Advisory is pointedly vanilla and noncommittal. FRP describe various outcomes as "uncertain" which is standard and traditionally the position right up until the point where funds are hopefully recovered.
This only indicates that at present the Office Holders (meaning administrators or liquidators ) cannot presently say more.
The use of this type of language is standard legalese, and should in no way be considered negative for the creditors. It is a continuance of the same professional tone as the previous report in June of 2022
What the FRP Advisory update does not say, indicate or suggest in any way is that the matter is being brought to an end. It is very much not. Matters are fully ongoing and will necessarily take time due to the very real complexities of the matter.
FRP Advisory are one of the most respected firms in their field. They are putting in a lot of work to locate and retrieve the considerable assets of Club La Costa UK PLC on behalf of their lawful creditors.
This investigation is exactly where it needs to be.
Andrew Cooper, CEO of European Consumer Claims added the following comment:
"The team at ECC are enthused by the news that the company has now moved into liquidation and remain as positive as ever that substantial funds will be recovered to help pay the creditors.
"It would have been the easy option for FRP to simply end the administration process and close matters there, the fact that this has now moved into a liquidation shows there are still matters to investigate and grounds to recover debts.
"Creditors will need to be patient a little while longer but should also be optimistic thanks to this latest update."
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