pwc

Chelbury Homes LimitedHigh Court of Justice

Chancery DivisionBristo’ District Registry

Case No. 8;8 012012

Joint Administrators’ progress report forthe period from

1 December 2014 to 31 May 2015

2 June 2015

WWW.pWC.Co.uk/chelbury

PwCBenson House

33 Wellington StreetLeeds

LS14JP

Contact: Hugh RothwetlTel: 0113 289 4165

Fax: 0113289.4460Email: hughj.rnthwelt@ukpwc.com

www.pwc.co.uk/brs

1. Joint Administrators’ progress report

Section

1 Joint Administrators’ progress report - 3

2 Statutory and other information 4

3 Receipts and payments account 5

4 Expenses incurred in the period 6

5 Analysis of the Administrators’ time costs and Category disbursements 7-9

Abbreviations used in this report

“the Company” Chelbuiy Homes Limited

“the Administrators” or “we” Ross David Connock and Robert Nicholas Lewis

“the Bank” HSBC Bank Plc

“1A86” The Insolvency Act 1986

“1R86” The Insolvency Rules 1986

“Sch.Bi 1A86” Schedule 31 of the Insolvency Act 1986

“Proposals” Administrators’ statement of proposals dated 20

September 2012

Chelbury Homes Limited - in Administration

Joint Administrators’progress reportfor the period 1 December 2014 to 31 May 2015

1. Joint Administrators’ progress report

r.; Introduction

We write to provide an update on the progress of the Administration, covering the period from1 December 2014 to 31 May 2015. Our previous reports covered the period from appointment011 30 July 2012 to 30 November 2014, copies of which are still available atwww.pwc.co.uk/chelburv.

We are approaching the date of the end of the Administration and unless the period of theAdministration is extended, the Administration will automatically end on 29 July 2015. For thereasons set out in this report, we consider that a two year extension is required, and in thecircumstances of this case, it is for the Court to decide whether that extension is granted.

This report has been prepared to support our request for an extension. A notice of extension,if approved, will be subsequently circulated to all creditors and a copy of this report will beavailable at www.pwc.co.uk/chelburv.

Further background information on the Company and events leading up to our appointmentcan be found in our Proposals dated 20 September 2012, which are also available on the abovewebsite.

1.2 Progress in the period

Our previous reports explained our strategy for realising the Company’s assets. At the tune ofour last report, the plot of land at Cheapside, Stroud had yet to be sold, an update of which isset out below

1.2.1 Cheapside, Stroud

The Company owns a one acre plot of land located just to the south of the centre of Stroud,alongside the Thames and Severn Canal.

Subject to planning, an offer for the site has been accepted and contracts were exchanged inMarch 2015 with completion to occur once planning permission has been granted to thepurchaser. The contract has a long stop date of two years to allow for the planning process.

Due to the long stop date running to March 2017, an extension to the Administration istherefore required to progress and complete the sale, and to deliver the uplift in value, planningapproval provided.

1.3 Administrators’ remuneration

The following information is included in Section 5, covering the period of this report:

• An analysis of the time spent in dealing with matters arising in the Administration;

• A narrative explaining the key tasks and issues falling under each category ofwork;

• A summary of our policy for charging and recovering disbursements; and

• A suinmaiy of other professional firms working on this case during the period.

Chetbury Homes Limited - in AdministrationJointAdministrators’progress reportfor the period; December 2014 to 31 May 2015 1

1. Joint Administrators’ progress report

The secured creditor fixed our remuneration on a time cost basis on. 2 October 2013.

Remuneration of £150,000 has been drawn to date with £20,000 drawn during the period of

this report. This is shown in the attached receipts and payments account.

You will note that the time cost charges incurred since our appointment are £279,073. This

amount does not necessarily reflect the amount that will be drawn.

14 Creditors’ rights

Creditors can find information on their rights regarding Administrators’ remuneration, online

at the following address:

http://www.icpew.com/—JmedialFiles/Tecbnical/Iusolvencv/creditors-guideslcreditors

gu$de-to-administrators-fees-eugland-and-wales.pdf

Alternatively, a copy can be provided free of charge by telephoning Hugh Rothwefl on 0113 289

4165.

1.5 Statutory duties

We have also been dealing with the statutory consequences of an administration appointment.

Section 5 provides more detail on these matters which include the submission of quarterly VAT

returns to HM Revenue & Customs, and the preparation of this report.

1.6 Outcome for creditors

1.6.; Secured creditor

Distributions totalling £788,260 have been made to the Bank, including £100,000 distributed

during the period covered by this report.

The Bank was owed £2.8 million at the time of our appointment and is expected to suffer a

significant shortfall on its lending.

1.6.2 Preferential creditors

Preferential creditors principally arise in respect of unpaid wages, subject to statutory limits,

and holiday pay for employees.

As the Company did not have any employees at the time of our appointment, we do not expect

any preferential claims.

1.6.3 Unsecured creditors

There will be insufficient asset realisations to enable a distribution to unsecured creditors by

virtue of the Prescribed Part or otherwise.

In the unlikely event that funds do become available by virtue of the Prescribed Part, we reserve

the right to make an application to Court under Section 176(A) 1A86 for an order not to

distribute the Prescribed Part to unsecured creditors if we conclude the costs of agreeing

ecreditor claims and making the distribution would exceed the funds available.

Chelbury Homes Limited - in Administration

Joint Adminisrrators’progress reportfor the period .i December 2014 to 31 May 2015 2

1. Joint Administrators’ progress report

1.7 Extending the Administration

The Administration is due to automatically end on 29 July 2015. Due to the long stop date ofthe property sale, an extension of 2 years is requested (until 29 July 2017), to allow the propertysale to complete, a final distribution to be made to the secured creditor followed by closureprocedures.

1.8 Next report

Our next progress report will be at the earlier of the conclusion of the Administration or inapproximately six months’ time.

Ross ConuockJoint AdministratorChelbury Homes Limited

Ross David Connock and Robert Nicholas Lewis have been appointed as joint administrators of Chelbury HomesLimited to manage its affairs, business andproperty as its agents and act withoutpersonat liability. Both are licensedin the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England andWales.

The joint administrators are Data Controllers of personal data as defined by the Data Protection Act 1998.PricewaterhouseCoopers LL? will act as Data Processor on their instructions. Personal data will be kept secure andprocessed onlyfor matters relating to the administration

Clielbury Homes Limited - in AdministrationJointAdministrators’progress reportfor the period; December 2014 to 31 May 2015 3

L

2. Statutory and other information

Court details for the Administration: High Court of Justice, Bristol District Registiy

County Court 818 of 2012

Fuli name: Chelbuty Homes Lenited

Trading name: Chelbuty Homes Limited

Registered number: 02195417

Registered address: Benson Houe, 33 Wellington Street, Leeds

IS14JP

Company directors: Julian Magee, Christine Magee

Company secretary: Julian Magee

Shareholdings held by the directors and Julian Magee - 250,000 Li shares

secretary: Christine Magee — 250,000 Li shares

Date ofthe Administration appoIntment: 30 July 2012

Administrators’ names and addresses: Ross David Connock and Robert Nicholas Lewis of

PricewaterhouseCoopers LLP, 31 Great George

Street, Bristol, BSi 5QD

Appointor’s / applicant’s name and address: The directors of the Company, 35 Rodney Road,

Cheltenham, Gto nix

Objective being pursued by the Administrators: Objective Cc) — realising property in order to male a

distribution to one or more secured or preferential

creditors

Division ofthe Administrators’ responsibilities: In relation to Paragraph 100(2)8th. 51 1A1986,

during the period for which the Administration is in

force, any function as conferred by the Insolveiuy

Act 1986 to be exercised by the persons appointed to

act as administrators maybe done by any or all of

the persons appointed or any of the persons for the

time being holding that office.

Proposed end of the Administration: Dissolution

Estimated dividend for unsecured creditors: Nil

Estimated values ofthe prescribed part and the Nil

company’s net property:

Whether and why the Administrators intend to N/A

apply to court snider Section tlr6A(5) 1A86:

The European Regulation on Insolvency The European Regulation on Insolvency Proceedings

Proceedings (Council Reguladon(EC) No. applies to this Arintinistration and the proceedings

1346/2000 of 29 May 2000): are main proceedings.

Chetbury Homes Limited - in AdministrationJointAdministrators’progress reportfor the period i December 2014 to 31 May 2015 4

3. Receipts and payments account

Cheibsary Homes Limited(In adaninlateetlon)

Admlnlateat.ara’ abstract otreeelpt.e end payments

FIXED CHARGE REALISATIONSFunds held in solicitors cilent aacouot

1000000 land -Iladerford1.000,000 P1-sporty development - Princess Royal Road

50,000 Prnpert3’ development - aspic Edge ViewRental income - Princess Royal Rood

Cost OP BEAUSATION / PAYMENTSAgents disbursementsAgents foesInsuranceLagaidlebursementsLegal feesL.egal fees deducted from salicltornoient accountManagement chargescHte hoider feesCce holderS expensesPro-appointment fees and expensesRelease of retentionsRepairs and maintenanceRoad adoption castsSecurityUtilitiesBank chargesIrrecoverable VAT

(5,800,000) DISrRIBITEIONSTOFIXEDCHARGR CREDITORS

NET FIXED CIL4RGE REALIBATJONS/(PAYMENTS)

FLOATING CHARGE REAUSAT IONSFcc-appointment VAT refundRefunds

Cost OFREAUSATION/ PAYMENTSLend reglatty feesLegal disbursementsLegalfeesEtc clearance costsEatement of affaico costsEatutory advertisingHotoge oasIsWebalteIrrecoverable VAT

PREFERENTIAL CREDITORSEmployees arrears ofwages and holidays

DISrRIRUTtONSTO FLOATING CHARGE CREDITORSt*strlbution to secured credilors

NET FLOATING CHARGE REALIS&TIONS/(PAYMRNrS)

UNRECUREDCNEDITORS(11,735) Trodecreditors

£

DIrector’.30 July Zot2 to s December2014 to Total RerperlodHatementof

30 November 0014 SoMay 2005 30 July ooistoAffair.3aM.y 2055

£ £ £

1,79540- 1,795.40

576,000.00- 876,000.00

75,000.00‘ 75,000.00

66.51502 )4.17 66.seg.ns1,059,109.32 174.17 1,059,2S349

(255.28)- (255.28)

(l,65i.oo)- (1,6i.on)

(6,965.82). (6,965.62)

(564.00). (564.00)

(19,294.90). (19,294.90)

(1,795.40)- (1,79540)

(7,170.75) (13.92) (7,184.67)(130,000.00) (2o,000.Oo) (050,000,00)

(373.65)- (373.65)

(5,000.ao). (5,00o,oo)

(10,000.00). (00,000,00)

(3,263,60)- (3,263,60)

(2,872.50)- (2,572.50)

(640.00)- (640.00)

(243.71)- (243.71)

(146.72) (82.10) (228.85)(.5,063.84) (5.183.84)

(095,421.17) (20,096.02) a05.517.i)

(688,260.00) (100,000.00) (788,260.00)

135428.05 for9,921.85) 05,506.30

3.580,02- 3,580.02

644.40- 644.40

4,22442- 4,22442

(11.00). (11.00)

(35.00)- (35.00)

(1.894,00)- (0,894.00)

(74.30)- (74.30)

(i9o,oo)- (190.00)

(172.60)- 1172.60)

(1,393.99) (126,22) (1,520.21)(5o.oo)

- (50.00)(650.99)

- (650.99)(4476.88) (126.22) (4,595.60)

(24746) (126.22) (37348)

(,5.49) (3,587.16) (8.i22.6)

.30,645.20 (1.23,635.23) 7,009.97

VAT account

TOTAL RALANCEAT BANK

Chelbury Homes Limited - in AdministrationJointAdministrators’progress reportfor the period 1 December 2014 to 31 May 2015 5

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5. Analysis ofthe Administrators’ time costs and Category 2disbursements

5.1 Explanation ofwork undertaken

Earlier in this report and in our previous correspondence with creditors, we provided details on our strategy,progress to date and additional matters arising in the Adniinistration. Later in this Section, we have includeda table showing our time costs for the period, by grade of staff and area of work. This shows time costs of£24,406, the key elements of which are explained further below.

Area ofwork Work undertaken in the period includes:Strategy & Planning • Case progression and planning meetings

Secured creditors • Reporting and liaising with the secured creditor. Making distributions to secured creditor

Assets • Liaison with managing and sales agents• Accounting for rental income• Dealing with queries from tenants and purchaser

Accounting and treasury • Periodic bank recondliations. Payment of costs. Account postings for income received

Staffitozy and compliance • Preparing this extension report• Preparing progress report to creditors

Tax &VAT • Preparing and submitting quarterly VAT returns

Chelbury Homes Limited - in AdministrationJoint Administrators’progress reportfor the period; December2014 to 31 May 2015 7

5. Analysis of the Administrators’ time costs and Category 2

disbursements

5.2 Hourly charge-out rates

The charge-out rates applicable to this case are set out below. Time is charged to the Administration in units

of not greater than six minutes.

Administrators’ staff Specialist (max)

Grade£/hr £fhr

Partner 575 1,130

Director 480 1,040

Senior manager 415 875

Manager330 630

SeniorAssociate(qualzfied) 250 465

Senior Associate (unqualified) 180 -

Associate160 225

Support Staff85 130

Specialist departments within our firm (such as Tax, VAT, Property and Pensions) may charge a small number

ofhours if and when we require their expert advice. Such specialists’ rates do vary but the figures above provide

an indication of the maximum rate per hour.

All staff who work on this assignment (including cashiers, support and secretarial staff) charge time directly to

the assignment and are included within any analysis of time charged. Each grade of staff is allocated an hourly

charge out rate which is reviewed from time to time. Work undertaken by cashiers, support and secretarial

staff is charged for separately and is not included in the hourly rates charged by partners or other members of

staff.

5.3 Disbursements

The table below shows the approved policy for charging the different categories of expenses, together with

the costs incurred in the period.

Category Policy£

1 All disbursements not falling under Category 2 are recharged at cost 6.15

2Photocopying - At 5 pence per sheet copied, only charged for cfrculars to creditors -

and other bulk copying.

2Mileage - At a maximum of 71 pence per mile (up to 2,000cc) or 93 pence per

mile (over 2,000cc).

Total for the period6.15

Brought forward from previous period 460.02

Total for the case (to 31 May 2015) 466.17

Chetbury Homes Limited - inAdministration

JointAdministrators’progress reportfor the period i December2014 to 31 May 2015 8

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Rule 247Form 2.243The Insolvency Act 1986

Administrator’s progress report 2.24BName of Company

Chethmy Homes Limited

In the

High Court of Justice, Bristol District Registry

We Ross David Connock and Robert Nicholas Lewis of PricewaterhouseCoopers LLP, 31 GreatGeorge Street, Bristol, BS1 5QD

administrators of the above company attach a progress report for the period

fromto

; December 2014 31 May 2015

SignedJoint Administrator

Company Number

02195417

Court case number

8i8 of 2012

Dated