Invoice Backlog Found at Connaught
The administrators of KPMG found thousands of unprocessed invoices while investigating the statements at Connaught. KPMG says that the debts of Connaught might be far more than previously thought just because of these thousands of unprocessed invoices.
There were more than 50,000 unprocessed supplier invoices found at collapsed property services group. These invoices were not recognized in the creditor’s ledger. This information was given us by Financial Times.
Investigation is still going on but KPMG has already given an estimate that the amount to be paid to unsecured creditors might be more or equal to £100. The management accounts at Connaught before investigation indicated that only £46m was owed to unsecured creditors and only £22m was owed to HMRC.
The joint administrator and restructuring partner of KPMG said that the centrally held records of Connaught were not reliable and were also in very poor condition.
David Costley-Wood also said that these payroll records are the worst ones he has ever seen in 20 years.
There were also some secured lenders of Cannaught. These lenders mainly included Royal Bank of Scotland and Lloyds Banking Group of Ireland. These lenders will surely take over the ownership of the two divisions at Connaught. The estimated amount of money owed to secured lenders is close to £215.
There was another collapse which was faced by Connaught. The administration of Connaught collapsed around two months ago and the FSA also launched an investigation in order to find information and the main cause of collapse.