FEES CHARGED BY HAWKINS INSOLVENCY LIMITED
This statement of additional information provided by Hawkins Insolvency Limited is produced in accordance with the Insolvency Amendment Rules 2015 ( Transitional Provisions ; the new regime applies to cases where an administrator, liquidator (not MVL) or trustee in bankruptcy is appointed on or after 1 October 2015 and Statement of Insolvency Practice 9, dated 1 November 2011 (“SIP9”). For further information on fees charged by Insolvency Practitioners please go to the following link and navigate to SIP9at the website: www.icaew.com
If creditors have any queries concerning fees, they are invited to contact Samantha Hawkins direct at email@example.com with any queries.
Fees may be set upon the following basis or bases:
- Time costs
- Fixed fee
- A combination of time costs and fixed fees for various tasks
- A percentage basis
When seeking approval, Fee Estimate will be provided at the outset of each assignment and if not at the outset it will be provided at the earliest practicable moment. Details of expenses that will be, or are likely to be, incurred will also be provided.
Details of the work proposed to be done will also be provided.
A Fee Estimate will specify:
- The work proposed to be undertaken
- The hourly rate or rates that the office holder proposes to charge for the work ( see below for current prevailing hourly rates)
- The time the office holder anticipates the work will take
- Whether the office holder anticipates it will be necessary to seek subsequent approval to exceed the estimate
- The reasons why subsequent approval will be necessary
Please note that there is a cap imposed upon time costs as follows :
- Office holder’s fees based upon time costs cannot exceed the Fee Estimate without further approval from the committee, if there is one, or the creditors if no committee
- Approval is sought from whoever initially fixed the basis on time costs, i.e. Creditors Committee, Creditors, or the Court
Please note that any request to exceed the Fee Estimate must be approved by the Creditors Committee ( if there is one) or the creditors and must include:
- Reasons why the fee estimate is or is likely to be exceeded
- The additional work undertaken or proposed to be undertaken
- The time the additional work has taken or will take
- Whether additional approval is expected
- Reasons for further approval
All reports to creditors on matters commencing on or after 1 October 2015 will include a statement setting out whether :
- The office holders remuneration is likely to exceed the fee estimate or any subsequently approved increase
- Expenses have or are likely to exceed the details given when the remuneration was fixed
- Reasons for the excess
Staff Allocation - In accordance with Insolvency Guidance Paper – Control of Cases
In accordance with the up to date professional guidance and published rules of best practice we have listed our firms policies in dealing with the following:
- Staff Allocation
- Professional advisors
- Charge out rates
Staff are allocated to tasks based upon the level of skill and experience they have and depending upon the complexity of the task. Hawkins Insolvency Limited have staff across all grades.
Some of the work may be sub contracted out and time charged to the estate in accordance with Statement of Insolvency Practice 9. This will always be reported in full to the creditors in reports. Payment will be made from Hawkins and Company and not the estate.
Due to the nature of insolvency appointments it may be necessary to instruct other professional advisors. Listed below are details of those we will usually instruct as this firm has developed a professional relationship with them as they have been instructed before and this firm considers the firms listed below to be the best. We have also indicated alongside, the basis our usual fee arrangement with them, which is subject to review on a regular basis and is also subject to disclosure in accordance with the Insolvency Amendment Rules 2015.
Name of Professional Advisor
DACBeachcroft LLP - legal advice
Willis Risk - insurance
Gordon Brothers Europe Limited- chattel asset valuers
Edward Symmons LLP- property valuer
Basis of Fee Arrangement
Hourly rate and disbursements
Premium based on assets
As advised above, our choice is based on our perception of their experience and ability to perform this type of work, the complexity and nature of an assignment and the basis of our fee arrangement with them.
Disbursements – Category 1 and Category 2
As advised above, disbursements are subject to disclosure and review in progress and final reports.
Category 1 Disbursements
Do not require approval by creditors. The type of disbursements that may be charged as a Category 1 disbursement to a case generally comprise of external supplies paid direct to a third party and typically comprise, case advertising, external printing, bridge tolls and other direct payments. It also includes payment to the firms listed above.
Any charges properly incurred by staff in connection with the administration will be re-charged to the estate and paid accordingly. For example, subsistence and out of pocket expenses.
Insolvency Practitioner and staff mileage is calculated at 85p per mile.
Category 2 Disbursements
This type of disbursement requires approval from creditors by way of a specific resolution.
These are costs which are directly referable to the appointment in question but are not payments which are made to an independent third party and may include shared or allocated costs that can be allocated to the appointment on a proper and reasonable basis such as internal room hire, document storage or business mileage.
We would advise that the following Category 2 disbursements are currently charged by Hawkins and Company:
Stationary/Fax/Printing/Photocopyingis charged as a one off fee of £10 per member/creditor
Internal storage of working papers £3 per week to a maximum of 10 years – total £1,560
(Based upon prevailing rates of Big Yellow Storage as at 7 October 2015)
Files and Indecies are charged at £30 as a one off fee
Internal meeting room hire is charged at £100 per hour
A schedule of the hourly charge-out rates, exclusive of VAT which is effective from 1 October 2015 is detailed below. Rates are subject to annual review on the 1st of January each year. It is not anticipated that rates will increase in 2014.
Other Senior Professionals
For the avoidance of doubt VAT will be charged on fees, time costs and disbursements where applicable. Time is recorded in a minimum of 6 minute units.
Hawkins Insolvency Limited
1 October 2015