Our ref: PDW/LQE/AF/BM/JG/AC/AM/NWL027

Duff & Phelps Ltd.

The Shard

32 London Bridge Street

London SE1 9SG

T +44 (0) 20 7089 4700

F +44 (0) 20 7089 4701

www.duffandphelps.co.uk

Duff & Phelps Ltd. Registered in England

(05568550). Registered office:7

Albemarle Street, London, W1S 4HQ -

Privacy Policy:

www.duffandphelps.com/privacy

UK Licensed Insolvency Practitioners acting as

office holders act without personal liability, are

bound by the Insolvency Code of Ethics and

unless otherwise stated are authorised by the

Insolvency Practitioners Association

Our ref: PDW/LQE/AF/BM/JG/AC/AM/NWL027

TO ALL KNOWN CREDITORS When telephoning please ask for:

Alex Marshall

e-mail:

[email protected]

Direct Line:

020 7089 0988

5 February 2021

Dear Sirs

Crown Holdings (London) Limited and Crown Currency Exchange Limited (In Liquidation)

(together “the Companies”)

Company Numbers: 05204837 and 05167427

Please find enclosed the Joint Liquidators’ Progress Report for the period ending 8 December

2020.

This document will be available at the above website address for not less than 2 months after the

end of these insolvency proceedings or the release of the last person to hold office as Liquidator.

You may request a hard copy of the documents, in writing at the address below, or by contacting

Alex Marshall on the details above.

A copy will be sent within five business days of the receipt of your request to the address you

specify. No fee will be charged for supplying the report.

Should you have any queries please do not hesitate to contact Alex Marshall of this office.

Yours faithfully

For and on behalf of

Crown Holdings (London) Limited

Crown Currency Exchange Limited

Geoffrey Bouchier

Joint Liquidator

Enc.

Duff & Phelps Ltd.

The Shard

32 London Bridge Street

London

SE1 9SG

Progress Report to

Creditors Crown Holdings (London) Limited Crown Currency Exchange Limited (Both In Creditors’ Voluntary Liquidation)

Joint Liquidators’ Progress Report to Creditors

for the period from 9 December 2019 to 8 December 2020

)

reminderscccccccccc

5 February 2021

Crown Holdings (London) Limited and Crown Currency Exchange Limited (Both in Liquidation)


5 February 2021

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Definitions

Word or Phrase Definition

the Act The Insolvency Act 1986 (as amended)

Bankruptcy Estate Peter David Benstead (Deceased Estate in Bankruptcy)

Barclays Barclays Bank plc (with whom the Company banked)

Barclays Monies Funds previously held by Barclays and subject to the Trust Monies

Order

Category 1 Disbursements The Joint Liquidators’ external and incidental costs and expenses in

dealing with the Liquidations

Category 2 Disbursements The Joint Liquidators’ internal costs and expenses in dealing with the

Liquidations

CHL Crown Holdings (London) Limited

(In Creditors’ Voluntary Liquidation)

(Company Number: 05204837)

CCE Crown Currency Exchange Limited

(In Creditors’ Voluntary Liquidation)

(Company Number: 05167427)

the Companies Together CHL and CCE

the Cumulative Period The period from the commencement of the Liquidations on 31 March

2011 to 8 December 2020

Duff & Phelps Duff & Phelps Ltd., The Shard, 32 London Bridge Street, London SE1

9SG

Edwin Coe Edwin Coe LLP, the Representatives’ solicitors

the First Order Block Transfer Order (High Court of Justice No. 2623 of 2013)

appointing Geoffrey Wayne Bouchier of Duff & Phelps as

replacement Joint Liquidator and which provided for the formal

removal of Matthew Peter Bond from Office

the Former Joint

Administrators

Matthew Peter Bond and Paul John Clark of Duff & Phelps, Harold

Sorsky of Streets SPW and Stella Davis of Opus

Grant Thornton Grant Thornton LLP, 30 Finsbury Square, London EC2P 2YU

HMRC HM Revenue and Customs

Isadore Isadore Goldman LLP, solicitors acting on behalf of the Joint

Liquidators

the Joint Liquidators Geoffrey Wayne Bouchier and Paul David Williams of Duff & Phelps



5 February 2021

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Kennedys Kennedys Law LLP, solicitors acting on behalf of the Joint Liquidators

the Liquidation Committee Committee of Creditors of CHL, composed of Tony Forrester, Delme

Roberts and Mike Spencer, representing the body of creditors as a

whole

Opus Opus Restructuring LLP, Evergreen House North, Grafton Place,

London NW1 2DX

POCA Proceeds of Crime Act 2002

the Police Devon & Cornwall Police

Previous Reports Reports supplied by the Joint Administrators dated 15 November

2010, 28 March 2011 and also the reports supplied by the Joint

Liquidators dated 24 May 2012, 6 June 2013, 12 May 2014, 30

January 2015, 5 February 2016, 7 February 2017, 5 February 2018,

7 February 2019 and 6 February 2020

the Reporting Period the period from 9 December 2019 to 8 December 2020

the Representatives Steve and Sally Jones, being former customers with an interest in the

Trust Assets, who are represented by Edwin Coe

the Rules The Insolvency (England & Wales) Rules 2016 (as amended)

the Second Order Block Transfer Order (High Court of Justice Manchester District

Registry No. 3401 of 2014) appointing Paul David Williams as

replacement Joint Liquidator and which provided for the formal

removal of Paul John Clark from office

SIP 9 Statement of Insolvency Practice 9 – Industry Best Practice for

Insolvency Practitioners in relation to disclosure of remuneration and

disbursements

TUPE The Transfer of Undertaking (Protection of Employment) Regulations

2006

Streets SPW Streets SPW, Gable House, 239 Regents Park Road, London N3 3LF

Trust Assets Funds received from customers after 1.03pm on 29 September 2010,

which remained in the Companies’ bank accounts at the date of the

Joint Administrators’ appointment

Trust Beneficiaries Creditors who are considered to have a proprietary interest in the

Trust Assets

the Victims Victims of Crime – Customers of the Companies who had

outstanding currency orders at the appointment date who

subsequently submitted a witness statement to the Police in respect

of their loss



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________________________________________________________________________________________________________

Name of Joint

Liquidators:

Harold

Sorsky

Stella Davis Matthew

Peter Bond

Paul John

Clark

Geoffrey

Wayne

Bouchier

Paul David

Williams

Date of Joint

Liquidator’s

Appointment:

31 March

2011

31 March

2011

31 March

2011

31 March

2011

9 April

2013

8 December

2014

Date of Joint

Administrator’s

Appointment:

4 October

2010

4 October

2010

4 October

2010

4 October

2010

N/A N/A

Date of

Vacation:

24

September

2019

14 May

2020

16 March

2013

8

December

2014

N/A N/A

Appointed by: the Director the Director the Director the Director the First

Order

the Second

Order

Date of Report: 5 February 2021

Court

Reference:

High Court of Justice, Chancery Division, Companies Court, London

Court Numbers: 8006 of 2010 and 8008 of 2010.

As previously reported, Matthew Peter Bond sadly passed away on 16 March 2013 and in accordance

with the First Order, his appointment ceased to have effect on that date. Geoffrey Wayne Bouchier was

appointed as replacement Joint Liquidator on 9 April 2013.

The Second Order was obtained on the 8 December 2014, providing for the formal removal of Paul John

Clark from office and appointing a replacement office holder, Paul David Williams, a licensed Insolvency

Practitioner of Duff & Phelps, as Joint Liquidator. Paul John Clark received his release from office from

the Secretary of State on 20 April 2015.

Harold Sorsky resigned as Joint Liquidator with effect from 24 September 2019. His release took effect

on 23 October 2019, being 21 days from filing of the notice with Companies House, on 2 October 2019.

Stella Davis resigned as Joint Liquidator with effect from 14 May 2020. Her release took effect on 11

June 2020, being 21 days from filing of the notice with Companies House, on 21 May 2020.

Mr Sorsky and Ms Davis’ resignations were on the basis that it was no longer expedient that there should

be the number of liquidators who were then appointed. The remaining work streams in the Liquidations

are being dealt with by Duff & Phelps, so replacement liquidators were deemed unnecessary.

Geoffrey Wayne Bouchier and Paul David Williams of Duff & Phelps continue in office as Joint

Liquidators.

Certain aspects of the Liquidation were dealt with prior to the passing of Matthew Peter Bond,

replacement of Paul John Clark and resignation of Harold Sorsky and Stella Davis, as such, all

references in this report shall remain the Joint Liquidators to prevent confusion.



5 February 2021

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Contents

1. Introduction

2. Progress of the Liquidation

3. Investigations and Legal Proceedings

4. Liabilities and Dividends

5. Costs and Expenses

6. Joint Liquidators’ Receipts and Payments Account

7. Statement of Creditors’ Rights

8. Conclusion

Appendices

1. The Joint Liquidators’ Receipts and Payments Account

2. Analysis of Time Charged and Expenses Incurred


4. Proof of Debt Form



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1. Introduction

1.1 The purpose of this progress report is to detail the Joint Liquidators’ acts and dealings together

with the conduct of the Liquidations during the Reporting Period.

1.2 This report should be read in conjunction with the Previous Reports.

1.3 The Companies’ registered offices are at Duff & Phelps Ltd., The Shard, 32 London Bridge Street, London, SE1 9SG.

1.4 The Companies’ former registered offices were 43-45 Portman Square, London, W1H 6LY and John Harvey House, Foundry Square, Hayle, Cornwall TR27 4HH, the latter also being the former trading address.

1.5 As previously reported, in accordance with Rule 1.50 of the Rules and in accordance with a High Court Order dated 11 October 2010, the Joint Liquidators will deliver the majority of future documents to the members and creditors by making them available for viewing and downloading on their website: https://micro.duffandphelps.com/ukrestructuring/cases?caseId=423.

2. Progress of the Liquidation

Contact with Customers and Creditors

2.1 The Joint Liquidators continue to receive calls and emails from creditors with general queries on

the progress of the Liquidations.

2.2 The Joint Liquidators will continue to provide creditors with updates via their website when applicable. Creditors should refer to the Duff & Phelps website for further updates in the first instance.

Liquidation Committee

2.3 The Joint Liquidators have provided several updates on the progress of the Liquidation during the Reporting Period to the Committee. The Joint Liquidators will continue to provide updates to the Liquidation Committee and arrange further meetings as required.

Trust Assets

2.4 As previously reported, following the Joint Liquidators’ application to Court, a hearing took place between 19 November 2019 and 21 November 2019 in respect of the distribution of the Trust Assets. This application sought ratification of the Joint Liquidators’ proposal for the identification of Trust Beneficiaries and the distribution procedure of the Trust Assets to the Trust Beneficiaries. The hearing also considered the respective positions put forward by the Representatives and the Joint Liquidators in relation to the quantum of Trust Assets, and in particular the cheque clearance issue, which as set out previously sought to increase the value of the Trust Assets at the expense of funds held within the main Liquidation Estate.

2.5 At the hearing, the Judge found in favour of the Joint Liquidators’ argument when determining cheque clearance and which of the cheque deposits should be included in the Trust Assets. It was found that cheques which were deposited on or after 27 September 2010 would form part of the Trust Assets and cheques deposited earlier would form part of the assets attributable to the main Liquidation Estate. The Judge also ruled on the onward process to be applied to the distribution of the Trust Assets. The judgement was largely in line with the approach proposed by the Joint Liquidators. It was also ruled that the Joint Liquidators’ properly incurred costs of the application before the Judge in November and of that hearing all would be payable out of the Trust Assets, as would the properly incurred Representatives’ costs. Edwin Coe on behalf of the



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Representatives sought leave of the Judge to appeal the part of her order dealing with the cheque clearance issue which was refused.

2.6 When the previous progress report (dated 6 February 2020) was circulated to creditors, the Joint Liquidators’ and the Representatives’ Counsel were finalising the terms of order following the hearing and it was expected that the updated order would be submitted to the Court and a sealed order would be received shortly thereafter.

2.7 However, agreeing the final terms of the order proved to be a protracted process for a number of reasons including the need to join the financial institutions of the Trust Beneficiaries to the order, one of which was based in Jersey which complicated matters as to how that bank was to be bound by the order. Further, there were differences of opinion on certain key areas of how the judgment was to be put into effect through the order which necessitated discussions with Edwin Coe.

2.8 In the absence of an agreement with Edwin Coe, Counsel for both parties sent submissions to the Judge on 5 August 2020. These submissions outlined the key areas of differences of opinion between parties, together with the respective parties’ submissions in relation to those differences, and the matters which were able to be agreed.

2.9 Following these submissions, the order was finalised and a sealed order was handed down by the Court on 28 September 2020.

2.10 The order provided for the application of legal tracing principles to the Barclays Monies to be considered by parties in order to determine the quantum of funds which are to be classified as Trust Assets and the funds which are available to the Liquidation Estate. Should such principles apply, then this may have the effect of reducing the Barclays Monies which form the Trust Assets and consequently increase the value of assets in the Liquidation Estate. The Joint Liquidators together with Kennedys are in the process of corresponding with Edwin Coe as to these tracing principles in order to determine the level of funds that are attributable to the Trust Assets and the Liquidation Estate. At this stage, the Joint Liquidators are unable to provide any further details on these discussions but will provide an update in due course.

2.11 In the event that agreement as to the relevant principles cannot be reached, the parties have liberty to apply to court for further directions.

2.12 An update will be provided on the Joint Liquidators’ website in due course.

3. Investigations and Legal Proceedings

Criminal Proceedings

3.1 As previously reported, five people associated with the Companies and Mayfair & Grant Ltd were

found guilty of various criminal offences at Southwark Crown Court.

3.2 The Police obtained confiscation orders under POCA totalling approximately £1m against Edward James and Susan Benstead to be paid into Court to compensate the Victims.

3.3 A total of £839,192 has been paid into Court under the confiscation orders with Edward James having settled his compensation order in full totalling £115,924 and Susan Benstead having paid a total of £723,269 following the sale of a property in France. Edward James has also paid £85,324.90 in accordance with a compensation order. The Police are exploring whether Mrs Benstead has any other assets in order to satisfy the balance of her confiscation order.

3.4 Compensation payments to the Victims via POCA are separate from any distribution which may be made to creditors in the Liquidations and the Police have completed their own claim adjudication procedure based on claims submitted directly to them by the Victims.



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3.5 An initial distribution was made to the Victims in 2018 and the Joint Liquidators understand that a further distribution will be made shortly.

3.6 Should creditors have any queries relating to recoveries made from the criminal proceedings, please contact the Police in the first instance.

Civil Proceedings

3.7 As previously reported, civil proceedings were undertaken by the Joint Liquidators (and later supported by the Joint Trustees of the Bankruptcy Estate) against third parties in possession of assets believed to have been improperly taken from the Companies. Please see the Previous Reports for further details in this regard.

3.8 A settlement was reached with the third parties in respect of the civil proceedings and funds were recovered by both the Companies and the Bankruptcy Estate.

3.9 The Companies are the main creditors of the Bankruptcy Estate and are therefore the main beneficiaries of recoveries into the Bankruptcy Estate. The independent Joint Trustee of the Bankruptcy Estate agreed the Companies’ claim totalling £10.4m, which represented over 99% of the claims in the Bankruptcy Estate as a whole.

3.10 A distribution has been received by the Companies in the Reporting Period in the sum of £1,422,949, representing a distribution of 13.68p in the £. The Joint Trustees hold a small residual balance which the Joint Liquidators expect to distribute shortly. This is expected to be c£8,500 so will not materially impact the funds available in the Liquidation Estate but will allow the Bankruptcy to be concluded.

3.11 As previously reported, Edward James received a criminal conviction and served a custodial sentence for fraudulent trading. The Joint Liquidators have explored commencing civil proceedings against Edward James and sought information on the value of Mr James’ available assets to assess the potential recovery prospects for the Liquidations. During the Reporting Period, further clarity has been obtained in relation to the value of the Mr James’ available assets, and the Joint Liquidators have contacted Mr James’ solicitors with a view to recovering funds from him. It is not possible to provide further information at this point as this may prejudice the recovery process. A further update will be provided in the Joint Liquidators’ next progress report to creditors.

4. Liabilities and Dividends

Secured Creditors

4.1 The Companies have no secured creditors.

Preferential Creditors

4.2 All preferential claims received by the Joint Liquidators have been paid in full.

Prescribed Part

4.3 Pursuant to Section 176A of the Act, where a floating charge is created after 15 September 2003, a Prescribed Part of a company’s net property (floating charge realisations less the costs of those realisations) shall be made available to its non-preferential unsecured creditors.

4.4 As the Companies did not grant any floating charges, the Prescribed Part does not apply.



5 February 2021

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Trust Beneficiaries

4.5 As detailed in Section 2 of this report, the order from the November 2019 hearing has now been finalised. The quantum of the Trust Assets is dependent on the application of legal tracing principles and subject to the finalisation of costs due to the Joint Liquidators, Kennedys and Edwin Coe solicitors who represent the Representatives. The Joint Liquidators are unable to provide further information on the timing or quantum of any distribution at this juncture but will provide an update to the Trust Beneficiaries as soon as possible, via the Joint Liquidators’ website.

Non-Preferential Unsecured Creditors

4.6 The non-preferential unsecured creditor claims received total £20,340,472, which mainly relate to claims received from former customers of the Companies.

4.7 Notwithstanding the outstanding matters to be finalised in respect of the Trust Assets and the other workstreams which may impact on the final quantum of funds to be distributed, there will be sufficient assets within the Liquidation Estate to enable a dividend to be paid to the non-preferential unsecured creditors of the Companies.

4.8 As such a small but dedicated team have recommenced work on completing the claims review and pre-adjudication process. The Joint Liquidators expect the review of claims and pre-adjudication process to be concluded in the coming weeks and therefore expect to be in a position to issue a Notice of Intended Dividend prior to the end of March 2021. The Notice of Intended Dividend will specify a last date for proving (which must be at least 21 days from the Notice), and the dividend must be declared within two months of the last date for proving. As such, the Joint Liquidators expect the dividend to be paid during summer 2021. The dividend will be paid to non-preferential unsecured creditors with agreed claims by cheque.

4.9 However, it should be noted that reaching agreement in respect of the legal tracing principles concerning the Barclays Monies will affect the split of funds between the Trust Assets and the Liquidation Estate and could therefore impact the level of funds available for distribution. Agreement of the legal tracing principles is therefore required to be finalised before the dividend can be paid. This Joint Liquidators are liaising with the Representatives through their respective solicitors to conclude this matter at the earliest opportunity.

4.10 The dividend rate will also be dependent on the total level of claims received and agreed (there are over 2000 creditors who are expected to participate in the eventual distribution who have not submitted a claim to date).

4.11 To assist in the planned adjudication and distribution process and ensure that this is completed as efficiently as possible, if you have not yet submitted your proof of debt, attached at Appendix 4 is a Proof of Debt form which should be submitted as soon as possible to the Crown Currency inbox at [email protected]. Creditors should also ensure that if their address has changed since the outset of the Administration that they have advised the Joint Liquidators of their current address.

4.12 Please note that following a court order dated 31 July 2019, the Joint Liquidators are not required to make any adjustment when making a distribution to the non-preferential unsecured creditors for any funds they have received relating to their claims against the Companies as Victims (via the POCA process) or as beneficiaries of the Trust Assets.



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5. Costs and Expenses

Liquidation

5.1 The Liquidation Committee determined in 2011 that the Joint Liquidators’ remuneration be fixed by reference to the time properly given by them and their staff in attending to matters arising in the Liquidations. The time costs to be drawn by the Joint Liquidators are based on the charge out rates as at 2010 with a 10% discount.

5.2 The Joint Liquidators’ time costs for the Reporting Period and the Cumulative Period are summarised below. Details of the time charged for the Reporting Period are attached at Appendix 2. Time has been charged in six-minute units.

Duff & Phelps

• Upon a review of Duff & Phelps hourly rates, inflation and industry averages, Duff & Phelps’ hourly charge out rates have been revised to reflect market rates in the Cumulative Period. The time costs detailed below are based on the Joint Liquidators’ prevailing standard hourly charge out rates and therefore the amount to be drawn will be discounted to reflect the rate agreed by the Liquidation Committee.

• Time costs for the Reporting Period at the Joint Liquidators’ standard hourly charge out rates total £71,313 and time costs at the rate agreed by the Liquidation Committee total £44,131.

• Time costs for the Cumulative Period at the Joint Liquidators’ prevailing standard hourly charge out rates total £1,332,003 and time costs at the rate agreed by the Liquidation Committee total £999,676.

• Duff & Phelps have drawn £150,000 in the Reporting Period.

• Duff & Phelps have drawn £670,000 in the Cumulative Period.

Streets SPW and Opus

• As noted in the summary page at the start of this report, Stella Davis has resigned as Liquidator.

• No time costs have been incurred in the Reporting Period.

• Time costs for the Cumulative Period for Streets SPW and Opus are as set out in the previous progress report and total £83,265.

• £31,153 of this was drawn in the Reporting Period.

• Streets SPW and Opus have collectively drawn £78,653 in the Cumulative Period. No further remuneration will be paid to Streets SPW or Opus.

5.3 The time costs incurred in the Reporting Period by Duff & Phelps relate to the following activities at the prevailing standard rate:

Administration and Planning - £39,305

• Preparation of the progress report to creditors dated 6 February 2020 and Companies House filings, including correspondence relating to the resignation of Stella Davis.



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• Considering case strategy, including meetings with both Duff & Phelps’ case staff, Kennedys and Isadore.

• Monitoring and updating the case management diary, conducting compliance and case reviews bi-annually.

• Preparing and submitting Corporation Tax returns and undertaking treasury functions in respect of receipts and payments into and from the Liquidation bank account and maintaining the cash book.

• Liaising with Isadore and other professionals regarding potential civil claims against Edward James.

• Following up with Grant Thornton regarding the distribution from the Bankruptcy Estate.

The role of a liquidator is highly regulated, being required to conform to insolvency legislation, industry best practice policies (Statements of Insolvency Practice) and relevant case law. Consequently, the Joint Liquidators are obliged to undertake the activities set out above, which in some cases do not provide a financial benefit to creditors. Creditors - £21,809

• All duties relating to the Liquidation Committee, including the preparation of updates and correspondence with the Liquidation Committee.

• Telephone calls with creditors and responding to enquiries from creditors via the Crown Currency Exchange Inbox.

Investigations - £7,714

• Investigations into the value of land owned by Edward James and the mechanics of extracting value from the same, including correspondence with Isadore

• Liaising with the Police in relation to the confiscation orders and their distributions to the Victims.

Creditor Claim Adjudication and Dividend - £2,425

• In anticipation of making a distribution to non-preferential unsecured creditors, the Joint Liquidators have recommenced work on completing the claim review and pre-adjudication process.

• The Joint Liquidators have developed a strategy to streamline the process, adopting a materiality-based approach to ensure that all claims are captured and supporting documentation is obtained for larger claims.

5.4 The Joint Liquidators anticipate that further costs will be incurred in relation to the following

activities. It is not currently possible to provide an estimate of the time costs which will be incurred.

• Continued correspondence with Edward James’ solicitors and liaising with Isadore in respect of potential recoveries from Mr James.

• Following up with the Joint Trustees of the Bankruptcy Estate in respect of the further distribution to the Companies.



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• In respect of the dividend to be paid to non-preferential unsecured creditors, issuing a notice of intended dividend, adjudicating upon claims received, seeking supporting paperwork for certain claims and declaring and paying the dividend. The dividend will be paid by cheque.

• Preparation of statutory reports, Companies House filings, completion of bi-annual case reviews and submitting Corporation Tax returns.

Expenses

5.5 The Joint Liquidators’ expenses and disbursements in relation to the Liquidation for the Reporting and Cumulative Periods are analysed at Appendix 2.

Trust Assets

5.6 In accordance with the court order dated 5 August 2015, Joint Liquidators’ remuneration is based on their time costs incurred at their relevant standard rates as set out in the schedule appended to that order.

5.7 The time costs detailed below are based on the Joint Liquidators standard hourly charge out rates and therefore the amount to be drawn will be less than their total time costs at their standard rates.

5.8 The Joint Liquidators’ time costs for the Reporting and Cumulative Periods in relation to the Trust Assets are summarised below.

• Time costs for the Reporting Period total £55,626.

• Time costs for the Cumulative Period total £486,928.

• Duff & Phelps have drawn £150,000 in fees relating to the Trust Assets in the Reporting Period.

• Duff & Phelps have drawn £362,913 in the Cumulative Period. In accordance with an order of the court, £250,207 has been paid from the Trust Assets and £112,707 from the Liquidation Estate.

5.9 Time costs in the Reporting Period relate to the following activities:

• Liaising with Kennedys in order to finalise the Trust Monies Order following the 2019 Court Hearing.

• Consideration of legal tracing principles together with Kennedys, including preparing witness statements, analysis and exhibits. Together with Kennedys, corresponding with Edwin Coe as to these tracing principles in order to determine the level of funds that are attributable to the Trust assets and the Liquidation Estate.

• Responding to creditor correspondence relating to the Trust Assets, including enquiries as to whether creditors are Trust Beneficiaries.

• Undertaking treasury functions in respect of receipts and payments into and from the Trust Assets.

5.10 While the Joint Liquidators continue correspondence with Edwin Coe in respect of legal tracing principles, the Joint Liquidators are not able to provide an estimate of the further costs in dealing with the Trust Assets. It should be noted that Trust Asset time costs relating to adjudication and



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distribution are to be drawn entirely from the Trust Assets in accordance with the court order dated 5 August 2015.

6. Joint Liquidators’ Receipts and Payments Account

6.1 A detailed Receipts and Payments Account for the Reporting and Cumulative Periods is shown in Appendix 1. As at the period end date there was a cash balance of £2,100,527, of which £1,466,527 related to the Liquidation Estate and £634,001 related to the Trust Assets.


7.1 Information regarding the fees and disbursements of Liquidators, including the rights to

challenge such costs, are attached at Appendix 3.

8. Conclusion

8.1 Creditors will receive formal reports annually until the conclusion of the Liquidations. The next

progress report will be for the period 9 December 2020 to 8 December 2021 and will be made available no later than 7 February 2022 on the Joint Liquidators’ website, or earlier should the Liquidation have been concluded prior to then.

8.2 The next communication with creditors will be the Notice of Intended Dividend which will be sent by post and email. As detailed in paragraph 4.11, creditors should ensure that the Joint Liquidators have been provided with their current address.

8.3 Any creditors who have not yet submitted details of their claim, should complete the attached proof of debt form at appendix 4 and return to [email protected].

8.4 In the meantime, if you require any further information please visit the Joint Liquidators’ website or email [email protected].

Yours faithfully For and on behalf of Crown Holdings (London) Limited Crown Currency Exchange Limited

Geoffrey Bouchier

Joint Liquidator



5 February 2021

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Appendix 1

Joint Liquidators’ Receipts and Payments Account



5 February 2021

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Crown Holdings (London) Limited and Crown Currency Exchange Limited (In Creditors' Voluntary Liquidation)

Joint Liquidators' Summary of Receipts & Payments

Statement

of Affairs £

From 09/12/2019

To 08/12/2020

£

From 31/03/2011

To 08/12/2020

£

Trust Assets

Bank Interest - Trust 1,776.83 8,213.19

Cash at Bank - Trust Monies Application - 1,711,813.80

1,776.83 1,720,026.99

Costs of Realisation

Joint Liquidators' Remuneration - Trust Monies Application (150,000.00) (250,206.70)

Joint Liquidators' Legal Fees and Disbursements - Adjudication & Distribution (98,400.66) (317,925.48)

Joint Liquidators' Legal Fees and Disbursements - Trust Monies Application (15,549.36) (170,780.60)

Representatives Legal Fees and Disbursements - Trust Monies Application - (164,378.81)

Bank Charges - Trust (3.33) (8.51)

Corporation Tax - Trust - (930.89)

Irrecoverable VAT - Trust Monies Application (52,790.00) (181,795.47)

(316,743.35) (1,086,026.46)

Uncharged Assets

Antecedent Transactions 1,422,949.26 1,462,949.26

Bank Interest 1,210.94 15,148.68

Cash at Bank - General - 150,716.32

Cash at Bank - Travellers Cheques - 138,595.41

Cash from Saunders - 55,000.00

Freehold Land and Property - 685,000.00

Furniture and Equipment - 1,166.67

Motor Vehicles - 2,500.00

Rates Refund - 132.31

Refund of Petition Fee - 1,000.00

Settlement Monies - 116,753.80

Sundry Refund - 389.34

Transfer from Administration - 638,207.25

1,424,160.20 3,267,559.04

Costs of Realisation

Joint Administrators' Remuneration - (80,000.00)

Joint Administrators' Disbursements - (370.35)

Joint Liquidators' Remuneration (150,000.00) (670,000.00)

Joint Liquidators' Disbursements (77.83) (2,915.89)

Joint Liquidators' Fees and Disbursements - Trust Monies Application - (112,706.70)

Joint Liquidators' Legal Fees and Disbursements - Trust Monies Application (15,549.36) (169,708.99)

Representatives' Legal Fees and Disbursements - Trust Monies Application - (171,350.81)

Agents/Valuers Fees - (3,055.55)

Bank Charges (4.44) (301.05)

Bordereau - (210.50)

Committee Expenses - (4,073.97)

Corporation Tax Charges - (9,995.66)

Insurance of Assets - (4,114.46)

Irrecoverable VAT (39,811.58) (204,502.30)

Irrecoverable VAT - Trust Monies Application (3,109.87) (90,534.07)

Joint Liquidators' Remuneration - SPW (31,152.68) (78,652.68)

Legal Disbursements - (70,601.70)

Legal Fees - Civil Proceedings (16,586.30) (98,021.44)

Mail Re-Direction - (136.12)

Property Agents' Disbursements - (4,290.71)

Property Agents' Fees - (11,987.50)

Rates - (3,350.57)

Security - (674.00)

Stationary and Postage - (111.00)

Statutory Advertising - (2,511.00)

Storage Costs (1,241.06) (5,694.73)

Sundry Expenses - (128.98)

(257,533.12) (1,800,000.73)

Preferential Creditors

DE Arrears and Holiday Pay - (940.99)

HMRC - (90.43)

- (1,031.42)

851,660.56 2,100,527.42

Represented By

Fixed Trust Account 634,000.53

Floating Current Account 1,466,526.89

2,100,527.42



5 February 2021

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Notes to Receipts and Payments Account

1. The value of the Trust Assets is based on the value of funds cleared after 1.03pm on 29 September 2010, which includes direct payments into the Companies' bank

accounts after this time and cheques deposited into the Companies' bank accounts on 27, 28 and 29 September 2010.

2. The remaining Barclays Monies are outside the scope of the Trust, and belong to each of the Companies beneficially.

3. The final calculation of the Trust Assets is subject to consideration of legal tracing principles, which could reduce the Trust Assets.

4. In accordance with Paragraph 8 of the Rosen Order, the proper costs of the Joint Liquidators and the Representatives which were incidental to the Trust Monies

Order, were to be paid as follows:

50% of the costs are to be paid out of the Trust Assets, in priorirty to the distribution of any sums to the creditors; and

50% of the costs are to be paid as an expense of the Liquidation from the Companies' general assets.

5. In respect of the costs of the Trust Monies Order, the Judge found that all costs which were incurred since the Rosen Order in August 2015 were to be paid out

of the Trust Assets.

6. As an SOA was provided for CHL during the Administration, there was not a requirement to provide a further SOA during the Liquidation. The Joint Liquidators

do not believe it is appropriate to provide a comparison of realisations during the Lioquidation to the Administration SOA.



5 February 2021

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Appendix 2

Analysis of Time Charged and Expenses Incurred



5 February 2021

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Crown Holdings (London) & Crown Currency Exchange Limited (Both in Creditors' Voluntary Liquidation)

Analysis of the Joint Liquidators' Time Costs (Excluding Trust) for the Reporting Period

Classification of Work Function Managing

Director

Manager Senior Assistant Support Total

Hours

Time

Cost (£)

Avg Hourly

Rate (£)

Administration and Planning

Case review & Case Diary management - 0.60 4.60 7.50 - 12.70 3,305.00 260.24

Cashiering & accounting - 1.70 11.20 21.00 - 33.90 8,370.00 241.53

Dealings with Directors and Management - - - - - - - -

IPS set up & maintenance - - - 0.70 - 0.70 112.00 160.00

Insurance - - - - - - - -

Statutory matters (Meetings & Reports & Notices) 4.60 9.80 17.80 12.00 - 44.20 17,167.00 388.39

Strategy planning & control - 7.25 11.35 5.45 - 24.05 9,813.50 408.05

Tax Compliance / Planning - 0.20 1.10 - - 1.30 537.00 413.08

Creditors -

Communications with Creditors / Employees - 1.30 10.80 61.60 - 73.70 14,366.00 192.72

Creditors committee 0.80 9.60 0.40 - - 10.80 6,411.00 593.61

Non Pref Creditor claims adjudication & dist'n - - 0.60 - - 0.60 228.00 380.00

Non Pref Creditors / Employee claims handling - - - 5.65 - 5.65 804.00 142.30

Investigations -

CDDA & reports & Communication - - - - - - - -

Financial review and investigations (S238/239 etc) - 7.00 9.40 - - 16.40 7,714.00 470.37

Forensic Sales Ledger Investigation - - - - - - - -

Realisation of Assets -

Book debts - 0.10 - - - 0.10 59.50 595.00

Freehold and Leasehold Property - - - - - - - -

Other Intangible Assets - - - - - - - -

Plant & Machinery & Fixtures & Motor Vehicles - - - - - - - -

Creditor Dividend -

Creditor claims strategy 0.20 2.30 2.10 0.60 - 5.20 2,425.50 466.44

Total Hours: 5.60 39.85 69.35 114.50 - 229.30 311.00

Total Fees Claimed: £ 4,170.00 23,386.50 25,567.00 18,189.00 - 71,312.50

Analysis of Duff & Phelps' Disbursements for the Reporting Period

Category 1 Disbursements Incurred (£) Amount Paid (£)

Travel & Subsistence - 66.88

Courier - 10.95

Total Category 1 Disbursements - 66.88

Category 2 Disbursements

There have been no Category 2 Disbursements incurred during the Cumulative Period

Hours



5 February 2021

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Crown Holdings (London) & Crown Currency Exchange Limited (Both in Creditors' Voluntary Liquidation)Analysis of the Joint Liquidators' Trust Application Matters Time Costs for the Reporting Period


Director


Hours

Time

Cost (£)

Avg Hourly

Rate (£)


Case review & Case Diary management - - - - - - - -

Cashiering & accounting - 1.40 1.10 - - 2.50 1,070.50 428.20

Strategy planning & control 5.90 64.25 31.70 0.10 - 101.95 53,513.75 524.90

Creditors

Communications with Creditors / Employees - - - - - - - -

Non Pref Creditor claims adjudication & dist'n - - 0.10 - - 0.10 38.00 380.00

Non Pref Creditors / Employee claims handling - - 1.00 - - 1.00 320.00 320.00

Investigations

Financial review and investigations (S238/239 etc) - - 1.80 - - 1.80 684.00 380.00

Total Hours: 5.90 65.65 35.70 0.10 - 107.35 518.18

Total Fees Claimed: £ 4,425.00 38,069.25 13,104.00 28.00 - 55,626.25

Analysis of Duff & Phelps' Trust Disbursements for the Reporting Period


There have been no Category 1 Disbursements incurred or paid during the Reporting Period


There have been no Category 2 Disbursements incurred or paid during the Reporting Period

Hours



5 February 2021

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Crown Holdings (London) & Crown Currency Exchange Limited (Both in Creditors' Voluntary Liquidation)

Analysis of the Joint Liquidators' Time Costs (Excluding Trust) for the Cumulative Period


Director


Hours

Time

Cost (£)

Avg Hourly

Rate (£)


Case review & Case Diary management 6.00 42.80 38.90 138.65 - 226.35 55,580.25 245.55

Cashiering & accounting 0.90 23.55 59.70 109.65 - 193.80 51,209.50 264.24

Dealings with Directors and Management - - 2.40 1.40 - 3.80 1,050.50 276.45

IPS set up & maintenance - 2.00 0.55 9.40 - 11.95 2,194.25 183.62

Insurance 0.20 - 0.30 0.60 - 1.10 277.00 251.82

Statutory matters (Meetings & Reports & Notices) 25.90 51.00 104.15 188.30 - 369.35 100,505.00 272.11


Tax Compliance / Planning - 4.60 7.15 10.50 - 22.25 6,260.00 281.35

General Admin - 4.20 - 13.00 - 17.20 3,330.50 193.63

General Correspondence - - - 0.80 - 0.80 88.00 110.00

Meetings 0.20 - - - - 0.20 109.00 545.00

Creditors

Communications with Creditors / Employees 14.50 57.40 179.70 491.45 - 743.05 153,829.25 207.02

Creditors committee 62.40 113.40 125.55 128.00 - 429.35 152,287.00 354.69

Non Pref Creditor claims adjudication & dist'n 3.20 13.20 0.60 22.00 - 39.00 12,266.00 314.51

Non Pref Creditors / Employee claims handling 2.20 3.70 14.80 133.75 - 154.45 32,405.75 209.81

Pref claims adjudication & distribution 0.40 0.70 3.50 - - 4.60 1,359.00 295.43

Employee Matters - - - 0.90 - 0.90 193.50 215.00

Unsecured Creditors - - - 3.80 - 3.80 796.00 209.47

Investigations

Investigations - - 10.90 21.70 - 32.60 7,208.00 221.10

CDDA & reports & Communication - - - 6.50 - 6.50 1,156.00 177.85

Financial review and investigations (S238/239 etc) 83.10 251.50 211.20 81.70 - 627.50 245,154.50 390.68

Forensic Sales Ledger Investigation 0.90 4.30 0.90 0.40 - 6.50 2,698.50 415.15

Financial Review - - - 1.90 - 1.90 251.00 132.11

Realisation of Assets

Book Debts 3.90 1.00 0.30 2.50 - 7.70 3,267.50 424.35

Freehold and Leasehold Property 2.90 - 7.80 2.30 - 13.00 3,849.00 296.08

Other Intangible Assets - 2.70 - - - 2.70 1,184.50 438.70

Other Tangible Assets - 41.90 2.90 0.40 - 45.20 18,789.00 415.69

Plant & Machinery & Fixtures & Motor Vehicles - - 0.30 1.00 - 1.30 192.50 148.08

Pre-Appointment Tax Reclaims - - 0.70 - - 0.70 213.50 305.00

Trading

Trading - Operations - - - 2.40 - 2.40 264.00 110.00

Creditor Dividend

Adjudication & Distribution - 235.15 - - - 235.15 101,114.50 430.00

Correspondence with creditors 0.10 - - - - 0.10 60.00 600.00

Creditor claims strategy 5.80 35.25 27.40 53.60 - 122.05 42,138.50 345.26

Dividend Audit - - 5.70 - - 5.70 1,824.00 320.00

Initial review of files for creditor claims - 7.40 2.80 892.60 - 902.80 168,086.00 186.18

Total Hours: 276.20 1,008.65 890.70 2,540.65 - 4,716.20 282.43

Total Fees Claimed: £ 161,124.00 448,822.00 267,401.50 454,655.00 - 1,332,002.50

Analysis of Duff & Phelps' Disbursements for the Cumulative Period


Travel & Subsistence 912.25 874.22

Committee Expenses 50.77 -

Bordereau 2,056.25 2,056.25

Courier 25.80 25.80

Storage 41.62 41.62

Sundry Expenses 28.44 28.44

Total Category 1 Disbursements 3,115.13 3,026.33



Hours



5 February 2021

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Crown Holdings (London) & Crown Currency Exchange Limited (Both in Creditors' Voluntary Liquidation)Analysis of the Joint Liquidators' Trust Application Matters Time Costs for the Cumulative Period


Director


Hours

Time

Cost (£)

Avg Hourly

Rate (£)


Case review & Case Diary management - 19.40 0.70 8.50 - 28.60 10,018.00 350.28

Cashiering & accounting - 22.30 6.60 48.50 - 77.40 22,485.25 290.51

Dealings with Directors and Management - - - 0.30 - 0.30 148.50 495.00

IPS set up & maintenance - 0.10 - 0.50 - 0.60 138.00 230.00

Insurance - - - - - - - -

Statutory matters (Meetings & Reports & Notices) - 0.80 1.20 1.30 - 3.30 1,161.50 351.97


Tax Compliance / Planning - - - - - - - -

Creditors

Communications with Creditors / Employees 1.20 9.50 10.40 70.50 - 91.60 21,379.00 233.40

Creditors committee 0.80 1.20 0.80 2.00 - 4.80 2,079.00 433.13

Non Pref Creditor claims adjudication & dist'n - 0.80 6.20 47.20 - 54.20 11,881.50 219.22

Non Pref Creditors / Employee claims handling - - 11.00 39.80 - 50.80 11,865.00 233.56

Pref claims adjudication & distribution - - - 47.40 - 47.40 9,006.00 190.00

Investigations

Financial review and investigations (S238/239 etc) 14.30 2.90 43.65 88.55 - 149.40 45,262.00 302.96

Realisation of Assets

Book debts - - - 0.30 - 0.30 163.50 545.00

Freehold and Leasehold Property - - 0.80 - - 0.80 192.00 240.00

Total Hours: 144.70 460.50 262.70 457.55 - 1,325.45 367.37

Total Fees Claimed: £ 86,726.00 214,337.75 86,701.50 99,162.75 - 486,928.00

Analysis of Duff & Phelps' Trust Disbursements for the Cumulative Period


Travel & Subsistence 36.36 -

Committee Expenses - -

Bordereau - -

Courier 22.48 -

Storage - -

Sundry Expenses - -

Total Category 1 Disbursements 58.84 -



Hours



5 February 2021

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Crown Holdings (London) Limited & Crown Currency Exchange Limited (Both In Creditors Voluntary Liquidation)

Analysis of the Joint Liquidators' Costs and Expenses During the Reporting Period

Company Type of Expenses Activity Fee Basis Amount

Incurred

(Excl. VAT)

Amount Paid

(Excl. VAT)

(£) (£)

Kennedy's Law LLP Legal Fees Legal Fees and Disbursements in respect of the Legal advice in relation to the Joint

Liquidators' Application for ratification of the proposal for the identification of Trust

Beneficiaries and the distribution procedure of the Trust Assets. Payable 50/50

between the General Estate and the Trust Assets. These costs were incurred in

2015 and 2016.

Time costs - 31,098.72

Kennedy's Law LLP Legal Fees Legal Fees and Disbursements in respect of the Legal advice in relation to the

adjudication and distribution of the Trust Assets, further consideration of tracing

matters and preparation of a witness statement in respect of the same and further

liaising with the Representatives' solicitors. All costs paid out of the Trust Assets.

Time costs 93,299.00 98,400.66

Isadore Goldman Limited Legal Fees Legal Fees and Disbursements in respect of negotiations with Mr James' solicitors,

advising on ad-hoc matters pertaining to the Liquidation.

Time costs 7,700.00 16,586.30

Total Data Management Storage Costs Storage Agents - Instructed to store the Companies' books and records as well as

the Joint Liquidators' records.

Unit costs 1,241.06 1,241.06

102,240.06 147,326.74

Where the amount paid during the Reporting Period exceeds the amount incurred, this is due to payment of costs which were outstanding in previous Reporting Periods.

Reporting Period

The Joint Liquidators’ choice of agent was based on their perception of the ability and experience to perform this type of work, the complexity and nature of the assignment and the basis of the Joint Liquidators’ fee

arrangement with them.

These costs exclude VAT and are VAT Irrecoverable

Costs incurred by Edwin Coe in the Reporting Period are to be confirmed. These costs relate to the legal fees and disbursements in acting for the Representatives of the Trust Beneficiaries and are subject to review

and to the extent they are payable will be paid out of the Trust Assets



5 February 2021

________________________________________________________________________________________________________

Appendix 3

Statement of Creditors’ Rights



5 February 2021

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STATEMENT OF CREDITORS’ RIGHTS

Rule numbers refer to Insolvency (England & Wales) Rules 2016 (as amended)

Section numbers refer to Insolvency Act 1986

‘Office-holder’ is the current Administrator or Liquidator as applicable

Information for creditors on remuneration and disbursements of liquidators

Information regarding the fees and disbursements of liquidators, including details of the Duff & Phelps

disbursements policy and hourly charge out rates for each grade of staff that may undertake work on this

case, is in a document called “A Creditors’ Guide to Liquidators’ Fees”. This can be viewed and

downloaded from the Duff & Phelps website at

https://www.duffandphelps.co.uk/services/restructuring/corporate-restructuring-and-debt-

advisory/creditor-guides-and-emplyee-fact-sheets

(click on the document ‘Liquidation (appointment from 1 October 2015)’. Should you require a copy,

please contact this office.

Creditors have the right to request information from the office-holder under rule 18.9

A secured creditor, an unsecured creditor with the concurrence of at least 5% in value of the unsecured

creditors (including the creditor in question) or any unsecured creditor with the permission of the court

may make a written request to the office-holder for further information concerning remuneration or

expenses. Such a request must be made within 21 days of receipt of this report and a response will be

provided within 14 days of receipt of the request.

Creditors have recourse to court, application to be made within 21 days of the office-holder giving

reasons for not providing all the information requested or the expiry of the 14 days within which an office-

holder must respond to a request.

Creditors have the right to challenge the office-holder’s remuneration and expenses under rule

18.34

A secured creditor, an unsecured creditor with the concurrence of at least 10% in value of the unsecured

creditors (including that creditor) or any unsecured creditor with permission of the court, may make an

application to court on the grounds that the remuneration charged or expenses incurred are excessive

and/or that the basis fixed for the office-holder’s remuneration is inappropriate. The application to court

must be made no later than eight weeks after receipt of the progress report where the charging of the

remuneration or the incurring of expenses in question occurs.



5 February 2021

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Appendix 4

Proof of Debt Form



5 February 2021

________________________________________________________________________________________________________

Crown Holdings (London) Limited (In Creditors’ Voluntary Liquidation)

Company No. 05204837

Relevant Date for Claims: 4 October, 2010 (Administration)

1. Name of creditor

(If a company please also give company registration

number and if non-UK, country of registration)

2. For correspondence:

Address of creditor

REF:

Contact telephone number of creditor

Email address of creditor

3. Total amount of claim, including any Value Added Tax

and outstanding uncapitalised interest (please advise of

any set off claimed)

4. Details of any documents by reference to which the debt

can be substantiated (please attach)

5. If amount in 3 above includes outstanding uncapitalised

interest please state amount.

£

6. Particulars of how and when debt incurred

(If you need more space append a continuation sheet to

this form).

7. Particulars of any security held, the value of the security,

and the date it was given.

8. Particulars of any reservation of title claimed in respect of

goods supplied to which the claim relates.

9. Signature of creditor or person authorised to act on his behalf

Name in BLOCK LETTERS DATE

Are you the sole member of the creditor?

YES / NO

Position with or in relation to creditor:

Address of person signing (if different from 2 above):

Admitted to vote for Admitted for dividend for

£

£

Date

Date

Liquidator

Liquidator

Rule 14.4

IR 2016 Proof of Debt – General Form

Documents

Our ref: PDW/LQE/AF/BM/JG/AC/AM/NWL027