At 17.15 this afternoon, in the High Court in London, the Honourable Mr Justice Snowden (pictured), put Hallam Estates Ltd, owners of the Grand since 1996 into administration.
This decision was reached after an application from the Tribunal-appointed Manager of the Grand responsible for the residential areas, Mrs Alison Mooney. She was seeking recovery of over £120,000 of unpaid service charges and court costs run up by Hallam since January 2019. The loss of these funds, it was alleged, have left the maintenance account in great difficulties when added to the unpaid service charges of Mr and Mrs Michael Stainer, former owners of 19 flats in the Grand, totalling over £320,000.
The Insolvency Act 1986 explains the purpose of administration, and the responsibility of an administrator are:
Rescuing the company as a going concern, or
Achieving a better result for the company’s creditors as a whole than would be likely if the company were wound up (without first being in administration), or
Realising property in order to make a distribution to one or more secured or preferential creditors
The decision is in effect saying to the current director Mr Robert Moss (below left), and his self-styled “consultant”, (his words not ours), Michael Stainer (below right), that they cannot be entrusted to carry out this function so we are appointing a professional company, in this case Begbies Traynor to do this.
The administrator is a very powerful animal and his rights, powers and duties are set out in The Insolvency Act 1986.
In everyday language an insolvency Administrator has the power to:
dismiss directors, managers and employees
close down outlets
negotiate the sale of the business of the company
put forward re-structuring proposals to creditors