Dispute over business rates brought down green machinery firm
An East Midlands recycling and waste management engineering firm went into administration after a dispute over business rates, according to a report seen by TheBusinessDesk.com
Nicholls Ecotech provided manufacturing, maintenance and installation services for recycled machinery and acted as UK agents for the Spanish Jovisa range.
Due to “uncertainties over the occupancy” over one of the company’s premises last year, Corby Council advised the director, Nigel Sims, that it had instructed bailiffs over a disputed business rates bill.
Miles Needham and Peter Wastell of FRP Advisory were appointed administrators of Nicholls Ecotech on 14 April.
Nicholls Ecotech had one secured creditor – Lloyds Bank Commercial Finance, which is owed £21,526.16 under a factoring agreement and unsecured debtors who are owed £25,866.44.
According to administrators, Lloyds has been chasing the money, but that a majority of these debts are subject to disputes and queries. Lloyds says it has put the administrators on notice and that they intend to use the non-factored debts to recoup what it owed to them.
The administrators say that unsecured creditors are unlikely to receive any of the cash owed to them.
In total, Nicholls Ecotech went into administration owing £145,750.95 – including over £33,000 to HMRC.
