Resorthoppa administrators investigate transfer provider’s failure

The administrators of Resorthoppa are investigating the company’s failure and “possible claims” of “transactions at undervalue”, “wrongful trading” and “transactions to defraud creditors”, according to their latest progress report.

Joint administrators James Saunders and Michael Lennon of KR8 Advisory have produced a confidential report following a review of the company’s banking records, accounts, books and records, and analysis of its “relationship with creditors”, in line with their statutory obligations to pursue any claims they can bring.

They have also reviewed “all creditor complaints” and compared “the directors’ reasons for insolvency against the joint administrators’ findings”. They urge any creditor with “concerns about the way in which the company’s business has been conducted or information on any potential recoveries” to contact them.

More: Resorthoppa had just £343k in assets at time of March failure

Analysis: Resorthoppa brought low by liquidation of Lowcost Travel Group

Resorthoppa entered administration in March, owing unsecured creditors £8.2 million following a ‘pre-packaged sale’ for £398,000 to the newly formed Hoppa Group – set up in February by California-registered transfer technology firm Elife Tech. Directors Ronaldo Scheepers and Matthew Hall transferred to the new company along with other employees.

The transfer provider had only emerged from a corporate voluntary arrangement in November 2024. But by March its debts included six-figure sums owed to 18 transport providers among 471 unsecured creditors. Elife was a creditor, owed about £97,000.

The pre-pack sale left creditors angry, although KR8 Advisory described it as “the only option” and warned there were not enough funds to pay preferential creditors, let alone those unsecured.

A ‘transaction at undervalue’ is one where an asset changes hands for significantly less than it is worth.

A ‘transaction to defraud creditors’ is one where a debtor intentionally transfers assets to hide them from creditors. Both can be reversed by a court and directors involved may face penalties or disqualification.

‘Wrongful trading’ refers to a company continuing to trade beyond the time when directors knew, or should have known, it had no reasonable prospect of avoiding liquidation. Directors can be found personally liable for this, although it’s a civil offence whereas fraudulent trading is a criminal act.

The administrators are also investigating possible ‘preference’ payments, where an insolvent company pays a particular creditor ahead of others. On completing their investigation, they must submit a report to the secretary of state, who decides whether to pursue action through the Insolvency Service.