Tradedrive Limited (04379821): administration
- Status
- Administration ended
- Administration began
- 2013-09-19
- Incorporated
- 2002-02-22
- Location
- London
- Industry
- 46120 Agents involved in the sale of fuels, ores, metals and industrial chemicals
Why it went into administration
- HMRC / tax arrears
- Creditor pressure / legal action
From the administrators' statement
The Company acted as the exclusive agent of Chemical Initiatives (Pty) Limited (“CI”), a company registered in South Africa, in arranging the distribution of sulphur on behalf of CI within the Copperbelt (comprising the Democratic Republic of Congo (the "DRC"), Malawi, and Zambia) (the Partnership") The Partnership's operation was supported from 2008 onwards by
Zamchem Limited (“Zamchem”), a company registered in Zambia which operated a store based in Ndola, Zambia (the "Store") Zamchem ts a related company, being 80% owned by the Company's Director Zamchem operated as an affiliate of the Company The Store was used by the Partnership as a transhipment base where bulk sulphur was re-bagged before being transported on to, inter alia, end customers of the Partnership in the Copperbelt (the "End Customers") Zamchem would store and re-bag the product, and would invoice the Company in respect of services which it had provided the Partnership in this regard (together the "Services") The Company would in turn invoice CI in respect of the Services
In late 2008, a dispute arose between the Company and CI (the "Dispute") Sulphur prices had increased rapidly in the first half of 2008 Generally, there was a 260 day lead time on sulphur imports made by CI, as the sulphur which it imported was predominantly shipped from Saudi Arabia, where its major supplier was based, and then unloaded at various ports in Southern Africa and supplied to its end customers, or the End Customers, via either road or rail Given the length of this lead time, a large quantity of sulphur was ordered by CI at a rate which tt thought to be below the top of the market (the "Sulphur"), in anticipation of it making a significant profit by virtue of having secured the Sulphur at a preferentral rate It ultimately anticipated selling the Sulphur directly to an end customer of its own Freeport McMorran Copper & Gold, Inc ("Freeport") which operated the Tenke Fungurume Mine (the "Mine") in the DRC, rather than to the End Customers However, once CI had ordered the Sulphur, the world price of sulphur then plummeted
Administrators' statement of proposals (2013-10-23) · Companies House register