Visit London
went into administration owing trade creditors in excess of £2.5m and with
pension liabilities of £7m, and Administrator Cork Gully has confirmed that, as things
currently stand, trade creditors will only receive in the region of just 35-45 pence
in the pound because Visit London’s assets will be distributed equally between
all liabilities including the pension fund.
However the Mayor’s Office is in talks with the Pension
Protection Fund (PPF) to see if it will pick up a greater share of the
liability and allow more cash to be distributed to trade creditors. Visit London
was placed in administration on April 1 after London & Partners, the new
agency designed to replace it by the Greater London Authority, decided it could
not take on its pension liabilities.
The responsibility for the £7m deficit would fall on the
PPF, which provides compensation when companies go into administration and
there are insufficient assets. But the Visit London Pensioners Action Group (VLPAG) does
not want the PPF to pick up the tab as the fund only pays 90 per cent
compensation to people below their scheme’s normal pension age.
Spokeswoman for the group, Louise Wood, said: “We understand
that the first meeting of the Mayor's Office, London & Partners, and the
British Tourist Board Pension Trustees has taken place. The action group is
waiting – with baited breath - to see if the parties can find a solution to our
pension situation that will deliver us from reliance upon the Pension
Protection Fund.”
Visit London’s
largest single trade debt was £444k owed to the Central Office of Information
Communications, closely followed by £423k owed to MCI Switzerland, while
various offices of VisitBritain were owed £150k. Organiser of the Best of
Britain and Ireland
travel trade forum, BoB Events, was owed in excess of £36k, while low cost
airline Ryanair was owed £60k, ICC London ExCeL was due £30k and a consultancy
firm advising how to market to gay people was owed £21k.
The next creditor’s meeting will take place on Monday 20
June.