Oddbins creditors will get less through administration

Published: 30 March, 2011

Accountancy firm Deloitte has revised to 7.5p in the pound the amount creditors will get if Oddbins goes into administration.

Previously the firm quoted that suppliers with unpaid invoices would be eligible for 13.6p back on every pound they are owed.

Creditors will vote whether or not to accept a company voluntary arrangement, which would see them get 21% of their debts paid off within a four-year period, tomorrow (Thursday March 31). Deloitte will announce the results of the vote, which requires a majority of 75% to carry the CVA, on Monday April 4.

In an earlier interview with Harpers, Baile described the CVA the "best possible way forward". He said the amount quoted by Deloitte to be paid out in the event of administration "may not quite be the reality of tomorrow, and these processes have a habit of taking a long time."

On the other hand, he said the CVA has a "very clear payment schedule" which offered "a minimum of 21%, with the potential additional upside of 50% from the court case (with Nicolas) if we get some relief."

Documents recently published by Deloitte show Oddbins is in arrears by £20 million. HMRC carries a powerful vote, as it's owed £8.6 million in unpaid duty, PAYE and VAT.

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