UKLI Limited (In Liquidation)

 

 

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FREQUENTLY ASKED QUESTIONS

 

            What is Liquidation?

I purchased a plot from UKLI but have not heard from the Liquidators - what should I do now?

Does the Administration affect my ownership of the plot(s)?

Can I sell my plot?

I purchased my plot from a company called Regents Land - What is the relationship between UKLI and Regents Land?

Are the Liquidators dealing with Regents Land?

So who should I contact at Regents Land in relation to my plot?

I purchased my plot from Regents Land - do I still own my plot of land?

Will I have claims against UKLI?

When will the Court make that decision?

If I do have a claim against UKLI, what does that mean?

What should I do with my plot?

Is there any thing else I can do at the moment?

If I am unsure if my plot is legally registered in my name how can I find out?

I paid in full / a deposit for a plot but have not received the land registration documents. Where do I stand?

Is there any preference or priority among creditors of UKLI?

Where can I get professional advice?

Are there any other options for dealing with my land open to me?

Do plotholders have any rights to receive government subsidies in relation to farming land?

Are there any potential liabilities which plotholders might face if they keep their land? 

           

 

Q.        What is Liquidation?

 

A.        Liquidators are appointed to a company that is unable to pay its debts. In this case Administration preceded Liquidation.

 

The Administrator's primary goal is to rescue the company as a going concern. If this isn't possible, the Administrator will try to get a better result for the company's creditors than would be possible if the company was wound up.

 

If neither of these is possible, the Administrator will sell the company's property for the benefit of its creditors.

 

In this case it was not possible to rescue the company and as per the proposals approved at the Creditors Meeting on 24 June 2008 the Administrator proceeded to sell the company's property for the benefit of its creditors.

 

The Liquidator’s are now carrying out this function. There is no specific time limit by which the liquidation should be concluded, although reports on progress are distributed to all known creditors on an annual basis.

 

If there are funds available to distribute to unsecured creditors and as and when Investors need to make a decision on whether to submit a claim we will write to you and make all the necessary documentation available on this website.

 

 

Q.        I purchased a plot from UKLI but have not heard from the Liquidators - what should I do now?

 

A.        As a priority please return the questionnaire so that we can ensure that we have your full correspondence details and are able to gauge investors initial (without commitment) intentions regarding your land.

 

You can download the questionnaire here.

 

Returning the questionnaire will enable the Liquidators to more accurately outline the options available to creditors and potential returns.

 

 

 

Q.        Does the Liquidation affect my ownership of the plot(s)?

 

A.        No. If you have plots of land registered with the Land Registry Office in the UK in your name, then ownership of those plots remains with you. However, it should be noted that as UKLI has ceased to trade no further work to gain planning consent is being carried out.

 

 

Q.        Can I sell my plot?

 

A.        You remain free to sell your plot, if you have received full title, i.e. your land is registered at the Land Registry in your name. However, it is likely that plots sold individually will have a value substantially lower than the price paid.

 

Q:        I purchased my plot from a company called Regents Land - What is the relationship between UKLI and Regents Land?

 

A:        Regents Land appears to have entered into an agency relationship with UKLI whereby UKLI sales staff negotiated and arranged plot sales on Regents' behalf, but ultimately Regents Land Investors bought plots from Regents Land and not from UKLI. 

 

Unless a Court orders otherwise Regents Land legally owned the land sold to Regents Land Investors and continues to own the land it has retained in each development being land at either:-

 

1. Earl Shilton

 

2. Finchampstead

 

3. Rearsby

 

4. Severn Beach  

 

 

Q:        Are the Liquidators dealing with Regents Land?

 

A:        At present the Liquidators of UKLI (and any member of Deloitte's staff or their advisers) have no legal authority to deal with the affairs of Regents or its investors which includes the signing or locating of TP1/TR1 land transfer forms.  Any claims investors believe they have against Regents Land are at this stage claims solely against Regents Land.

 

 

Q:        So who should I contact at Regents Land in relation to my plot?

 

A:        Regents Land has now been wound up. The Official Receiver’s Office (which is part of Her Majesty’s Civil Service and overseen by the UK Government) is responsible for dealing with enquiries in respect of the winding up proceedings and can be contacted on 01727 832233, or at the following address:

 

Mr M Arnold

Official Receiver's Office

1st Floor

Trident House

42-48 Victoria St

St Albans

AL1 3HR

 

Tel: 01727 832233

Fax: 01727 732400

 

 

Q:        I purchased my plot from Regents Land - do I still own my plot of land?

 

A:        Yes, if you have completed your purchase you will be the registered owner of a plot of land.  This is yours, and will remain so until you chose to sell it or otherwise hand it back.

 

However, Regents Land Investors may find that the planning prospects for the sites are different to what they were led to believe by UKLI sales teams.

 

 

Q:        Will I have claims against UKLI?

 

A:        Many of the Regents Land Investors we have spoken to describe how they believed that they were dealing with UKLI and not Regents Land.  The Liquidators believe that Regents Land is owned and controlled by Mr Chohan, although he is not a statutory director.

 

Those creditors who attended the meeting on 24 June 2008 will be aware that the Liquidator’s proposed inviting the Court to determine whether or not UKLI was operating a "Collective Investment Scheme" (CIS) within the definition of FSMA, and if it was, whether creditors would have s.26 remedies (to return their land for a nominal dividend).

 

The Liquidators are also proposing to invite the Court to determine whether Regents Land Investors have potential claims against UKLI which may entitle them to lodge a claim as an unsecured creditor in UKLI's liquidation and ultimately receive a dividend based upon that claim.

 

 

Q:        When will the Court make that decision?

 

A:        The Court will be invited to give the Liquidators directions as to the kind of evidence it requires to determine if UKLI and Regents were operating a Collective Investment Scheme, and who should present those arguments.

 

The evidence will likely include Witness Statements from sample investors.

 

Before this happens the Liquidator’s await further information from the FSA as to its position on Regents Land, and will also be dependent on funds becoming available to distribute to unsecured creditors, as it would be premature to determine this issue if there are no funds to distribute to unsecured creditors.

 

 

Q:        If I do have a claim against UKLI, what does that mean?

 

A:        You will be able to lodge a "Proof of Debt" in the liquidation of UKLI.

 

If Regents Land Investors are found to be creditors of UKLI then this will dilute the assets which are available to be distributed to creditors by way of dividend.

 

By way of example, if the Liquidators were to declare a dividend of, say 2 pence in the £ and you had paid £10,000 for your plot, you would be entitled to receive £200 of your original by way of dividend distribution.

 

 

Q:        What should I do with my plot?

 

A:        The Liquidators are unable to advise investors as to the best course of action.  Regents Land investors must make their own decisions.

 

 

Q:        Is there any thing else I can do at the moment?

 

A:        The Liquidators require evidence of the sales techniques and practices employed by staff employed by UKLI/Regents Land.

 

Regents Land Investors are invited to prepare and send to the Liquidator’s a short summary of the circumstances surrounding the purchase of their plot.  The Liquidators would be especially interested to learn of what representations were made to investors about the land and its planning potential, and how the scheme would work.

 

The Liquidator’s are aware that UKLI creditors particular to each site have created internet forums/chat rooms to allow them to keep in touch and to share ideas about how best to deal with their plots in the future. We are in the process of opening forums on our website to facilitate this endeavour.

 

 

Q:        If I am unsure if my plot is legally registered in my name how can I find out?

 

A:        A form PN1 can be downloaded from the Land Registry website.  This form allows a person to search for any land they own.  The form should be filled in and sent with a fee of £10 to The Land Charges Department, Plumer House, Tailyour Road, Crownhill, Plymouth, PL6 5HY.  The results will take a few days to arrive and will show all the title numbers and Land Registry office dealing with those property titles owned by the individual named on the PN1 form.

 

If you want to see the official copies of register of title, you must contact the Land Registry Office which deals with that particular property.

 

All the contact details of the various Land Registry offices can be found on the Land Registry website.

 

 

Q.        I paid in full / a deposit for a plot but have not received the land registration documents. Where do I stand?

 

A.        You will be an unsecured creditor in the Liquidation. Please write to us, providing full details, so that we have a record of your claim.

 

You may have additional rights if you paid for your land (in full or in part) by credit card.

 

You may wish to visit the DTI's Consumer Website here for further information.

 

If your claim against your credit card is successful they will have a claim in the Administration instead of you (a subrogated claim).

 

Q.        Is there any preference or priority among creditors of UKLI?

 

A.        Different creditors have different rights; with secured creditors having priority over other creditors.

 

Secured creditors with a 'fixed charge' over assets - for example, a mortgage from a Bank that is secured on a property - will be paid first from the Company's assets.

 

Then come preferential creditors who are the employees (for holiday pay and up to four months' arrears of wages to a set maximum).

 

In the case of UKLI it is anticipated that the debt due to secured creditors (and any preferential creditors) will be repaid from the realisations from UKLI's assets.

 

Funds left after paying secured and preferential creditors and the Liquidators’ expenses will be shared (distributed) on a pro-rata basis amongst the unsecured creditors. This is known as paying a dividend.

 

Unsecured creditors share equally in any funds available for distribution. 

 

This includes the normal trade creditors of the Company, people who have paid deposits and those claims made from people who return their plots to the Company under Section 26 of FSMA.  There is no difference between trade creditors and land purchasers who return land to the company in return for an unsecured claim; all unsecured dividends receive the same percentage return on their debt.

 

Q.        Where can I get professional advice?

 

A.        Unfortunately we are unable to advise you with regard to which option is best for you. You may wish to contact the Citizens Advice Bureau and/or a Solicitor. Click here for a link to the Citizens Advice Bureau.

 

 

Q.        Are there any other options for dealing with my land open to me?

 

A.        Possibly. But the recent planning pieces produced by DTZ would appear to suggest that planning prospects at all of the UKLI owned sites are minimal.

 

 

Q.         Do plotholders have any rights to receive government subsidies in relation to farming land?

 

A.        No. All the contracts for sale state that the purchaser of the land does not acquire the right to such subsidies.

 

 

Q.        Are there any potential liabilities which plotholders might face if they keep their land?

 

A.        Under UK law there are a number of potential liabilities which might arise against on the registered  owners of           land. These include such things are being responsible for water drainage, or environmental clean up costs, or removing fly-tipping waste. As freehold owners             each   and every plot holder will be individually responsible for such charges as they affect their land.

 

            Please note we are not responsible for the content on any external website referenced above.

 

            Please also note that we will continue to update this website on a regular basis as and when relevant information becomes available.