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Settling for less.

Byline: Alan Plews

Creditors of a failed Teesside training centre are likely to receive less than originally expected, it emerged today.

Unsecured claims on the former Training Advice and Development (TAD) Centre, in Berwick Hills, Middlesbrough, have risen by pounds 76,000 to pounds 217,000.

This new figure followed a decision to extend the time allowed for creditors to submit their claims until November 30.

But now a number of creditors have asked for, and been given, extra time to put their claims together.

Joint liquidator Harvey Madden, of Yarm-based Taylor Rowlands, has set March 31 as the final deadline.

This move will bring in extra claims but Mr Madden does not believe they will be for "significant" amounts.

"We would hope to be able to assess everything from April and hope to announce a dividend by the end of July," he added. "But I would think there will be a shortfall on the original estimate of around 30p in the pound."

TAD Centre assets have been sold and equipment bought through Euro and other grant aid given to worthy causes in line with initial grant regulations.

"This means there is not as much money as thought, but at least local recipients have benefited from the equipment," said Mr Madden.

He added all preferential creditors have been paid in full.

Among new unsecured creditors are Choice Hotels, with a claim for the breaking of the franchise agreement it had with the centre, and from employees looking for protective awards in relation to salary and also for loss of pension.

The centre went into voluntary liquidation on January 2 2003 with initial debts of pounds 150,353 and assets of pounds 167,359. At a creditors' meeting shortly afterwards, Middlesbrough Council, the building's owners, waived its rights to a floating charge on the centre of pounds 93,469.

A company limited by guarantee, the TAD Centre began operating on council land, in 1994. It was funded by City Challenge and European grants totalling pounds 4.3m, and a further pounds 750,000 funding over three years.

By 1997 the centre had to be self-financing but it was hit, in part, by a decline in the conference market. It closed on December 20 2002.
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Title Annotation:Business
Publication:Evening Gazette (Middlesbrough, England)
Date:Feb 13, 2004
Words:373
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