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The return for creditors when companies fall insolvent is often pitifully low, writes The Furnishing Report editor Richard de Melim.

So, as a general rule, administrators doing all they can to recover funds for creditors should be applauded.


In January 2014, the European Commission handed down fines of €114m following an investigation into an alleged pricing cartel in the foam sector.


By that time, KPMG was a few months in to its job of tidying up the affairs of Horatio Myer & Co and Hilding Anders UK PLC, having been appointed administrator in March 2013.


It pursued a damages claim, which resulted in a recent settlement that will see £2.1m paid out by foam companies to the estate of the two bed companies.


KPMG says it will now look to make an additional payment to unsecured creditors, on top of the £600,000 shared under the UK’s Prescribed Part rules back in the middle of 2014.


Unsecured claims had totalled £43.3m, meaning creditors received just over 1 pence in the pound from that payout.


Law firms Quinn Emanuel Urquhart & Sullivan LLP and Squire Patton Boggs (UK) LLP were paid £1.1m* and £54,000* respectively for their assistance in the foam company settlement, according to KPMG.


In it latest report to creditors, KPMG also noted that its own time fees incurred between its March 2013 appointment and November 2015 totalled £962,292** for its work on Horatio Myer & Co and £373,034 for Hilding Anders UK.


If I were an unsecured creditor of either of those two companies, I might just resist the temptation to pop the champagne cork.


* combined legal fees across the two companies

** KPMG had drawn £809,973 by the time of its 27th May 2015 report to creditors, but nothing for the period since

Related Story: Damages claim: Foam suppliers & Ex-Bedco settle