Coldseal in liquidation - Derby Evening Telegraph

An investigation into the way in which Coldseal Group Ltd acquired the assets of Alfreton double-glazing company Coldseal Ltd in December 2003 has revealed that no money changed hands. As a result, administrator Begbies Traynor, of Southend, Essex, has filed a report to the Department of Trade and Industry, suggesting that further investigations be carried out into the legality of the transaction.

Despite boasts of turnover of around £75m for the year and an order book worth £16m, Coldseal Group Ltd was unable to pay creditors and claimed assets of only £60,000 to £70,000. It has been alleged that "crown liabilities", tax and VAT, were not assumed by Coldseal Group Ltd when it "bought" Coldseal Ltd, which trades as Coldseal and has its main sales office on the Meadow Lane industrial estate.

There is nothing illegal about winding up a company, nor for a director of a company in liquidation to be a director of a company that acquires the assets of the liquidated company. However, to close a company and transfer the assets to another firm at less than a realistic value, to avoid honouring guarantees or paying debts, particularly tax and VAT, could be illegal.

The allegation, in the administrator's reporter, against at least some of the directors of Coldseal Ltd, who were also directors of Coldseal Group Ltd, came to light when it was revealed that Coldseal Group Ltd had followed Coldseal Ltd into liquidation, after just eight months.

None of the directors named in the allegation have been identified and the details of the allegation have not been disclosed. A spokesman for Begbies Traynor said only, "We have filed a report to the Department of Trade and Industry." The Coldseal brand has now transferred to a company called The Carthium Group Ltd, which has its registered offices at solicitors Wollastons, of Brierly Place, New London Road, Chelmsford, Essex.

George Haddow, of Bower Mount Road, Maidstone, Kent, Barry Raymond Westwood, of Harrow Road, Leighton Buzzard, and Carl Williams, of Bridge Avenue, Upminster, Essex, were all directors of both Coldseal Group Ltd and are directors of The Carthium Group Ltd. Mr Williams resigned as a director of Coldseal in August 2004, four months after The Carthium Group Ltd was incorporated. The date on which Coldseal group Ltd's assets transferred to The Carthium Group Ltd has not been revealed.

Coldseal Solicitors:

Wollastons
Brierly Place
New London Road
Chelmsford CM2 0AP

Tel: 01245 211 211
FAX 01245 354 764


The name of the people dealing with Coldseals liquidation:

Stewart Bennett
Berg Kapron Lewis
35 Ballards Lane
London N3 1XW

Tel: 020 8922 9222

Source Derby Evening Telegraph