Hotcha Group Ltd (10344358): administration
- Status
- Administration ended
- Administration began
- 2017-10-18
- Administrators
- Simon Robert Thomas, Arron Simon Kendall
- Administrators' firm
- Moorfields
- Incorporated
- 2016-08-24
- Location
- London
- Industry
- 64209 Activities of other holding companies n.e.c.
Why it went into administration
- HMRC / tax arrears
- Over-expansion / investment not recovered
- Cash flow / liquidity pressure
- Sustained trading losses
- Management failings / irregularities
From the administrators' statement
The expansion of the Companies’ business had been partly funded by loans from GLAS Trust Corporation Limited (‘the Secured Creditor”) which totalled £7.5m. Security for the loans had been provided in the form of debentures conferring fixed and floating charges over the Companies’ assets and undertaking.
HL submitted a VAT return for the quarter ended December 2016 which indicated that a significant refund of VAT was due. HM Revenue & Customs (“HMRC”) undertook a VAT inspection and formed the opinion that false information has been included within the VAT return. The VAT refund was not paid to HL
As a consequence of these events, in February 2017, the Secured Creditor issued a breach letter in respect of the loan facilities and indicated that it required repayment. Over the period from May to August 2017, the Secured Creditor received payments totalling £5.2m from director Jian (James) Liang, who acquired an interest in the security granted by the Companies
Administrators' statement of proposals (2017-12-22) · Companies House register