Willenhall gears maker entered moratorium three days before first UK lockdown
AlphaDrive Engineering Services, a Willenhall bearings and gears maker, entered a moratorium on 16 March 2020 with BCRS-linked lenders holding charges registered weeks earlier.
Information for general guidance, drawn from the public record. Not legal, financial, or insolvency advice. If you are affected by an insolvency, consult a licensed practitioner or qualified solicitor.
A moratorium authorisation was signed on 16 March 2020 for AlphaDrive Engineering Services Limited, a Willenhall manufacturer of bearings, gears and driving elements, just three days before the UK government announced its first national lockdown on 19 March.
A moratorium is a formal breathing space under the Insolvency Act 1986 that pauses most creditor enforcement action, giving a company time to explore a rescue or restructuring without the immediate threat of legal proceedings. The notice was published in the London Gazette on 18 March 2020.
The company
AlphaDrive Engineering Services was incorporated on 2 July 2010 and operated from Springvale Street, Willenhall, WV13 1EJ in the West Midlands. Its SIC classification covers the manufacture of bearings, gears and driving elements. The company has since entered liquidation.
The office holder
Andrew Fender of Sanderlings LLP was named as office holder, carrying IP number 6898. The firm's address is listed as Sanderlings, Becketts Farm, Alcester Road, Birmingham, B47 6AJ, which also appears as the company's registered address at Companies House.
The director
Anthony Mark Chisholm was the sole director at the time of the moratorium, having held the role since 31 March 2015. Earlier directors, Penelope Anne Chisholm and Kurt Luke Wainwright, had both resigned by February 2013, and Philip Peter Hall resigned in January 2016.
Secured charges
Three outstanding charges were registered against AlphaDrive Engineering Services in the months immediately before the moratorium. Advantedge Commercial Finance Limited registered its charge on 2 October 2019, delivered to Companies House on 7 October 2019. Two further charges, both created on 18 November 2019 and delivered on 5 December 2019, were held by Bcrs Cief Limited and Bcrs Meif Gp Limited, entities linked to BCRS Business Loans, a Midlands-focused community development finance institution. All three charges remained outstanding at the time of the moratorium notice.
What this means for creditors and suppliers
Once a moratorium comes into force under Schedule B1, paragraph 43 of the Insolvency Act 1986, most creditor enforcement action is paused. Creditors generally cannot start or continue court proceedings against the company without the court's permission during that period.
Creditors wishing to record amounts owed to them do so by submitting a proof of debt, the formal claim form used in UK insolvency proceedings to record the sum a creditor says is outstanding. Correspondence is handled through the office holder at the firm address on the notice.
Trade suppliers and others without security rank as unsecured creditors and sit behind secured charge holders in any distribution of assets. Employee claims for unpaid wages, notice pay and redundancy are treated separately under employment legislation. The Redundancy Payments Service handles statutory payments to employees where an employer cannot meet those obligations.
Common questions
Are you owed money by Alphadrive Engineering Services Limited?
You are an unsecured creditor unless you hold a registered charge or retention of title. The administrators will write to known creditors in due course with a proof-of-debt form and timetable for the first meeting. Until that letter arrives, no formal action is required from you. Read more about proof of debt and where you sit in the creditor hierarchy.
Did you work at Alphadrive Engineering Services Limited?
Wages owed up to a statutory cap, holiday pay, notice pay and redundancy may be claimable from the Redundancy Payments Service if the company is unable to pay. The administrators will normally coordinate the RP1 claim with the affected staff. See gov.uk: your rights if your employer is insolvent.
Do you hold a deposit, gift card or undelivered order from Alphadrive Engineering Services Limited?
Customers with paid-but-undelivered orders, gift cards or deposits typically rank as unsecured creditors. Where you paid by credit card and the amount was over £100, Section 75 of the Consumer Credit Act 1974 may let you claim from the card issuer for breach of contract or misrepresentation by the supplier; the rules apply per item, not per transaction, and the card must be a regulated credit card. Debit-card payments may be recoverable via chargeback.
Are you a director of a company connected to Alphadrive Engineering Services Limited?
Watch for Section 216 of the Insolvency Act 1986 if you intend to keep trading under a similar name in a successor company. The rule prohibits a director of a liquidated company from being involved in another company using the same or a similar name for five years, unless one of the statutory exceptions applies. Read more about Section 216.
Sources
- The London Gazette notice (code Moratoria, Prohibited Names and Other: Moratorium: Coming into Force)
- Companies House record 07302839
- Editorial standards: how we source and review; five-pass pipeline.
