Creditors of BHS Set for Payout Amounting to £36m Against the £1bn Worth of Debts

By Mstott4 (Own work) [CC BY-SA 4.0] via Wikimedia Commons

According to reports, the unsecured creditors of BHS are set for an interim payout amounting to £36m against the debts of more than £1bn.

In a document that was sent to creditors last week, the liquidator of the former stalwart of the high street, FRP Advisory, revealed a 3.6 percent dividend.

In April of 2016, BHS collapsed into administration. As much as 11,000 people lost their jobs during the said collapse.

FRP is in the process of winding up the collapsed retailer and paying the proceeds of residual assets to its creditors.

Most of the interim dividend that is included in the FRP report that was seen and reported by some reporters today has been funded by an agreement that was finalised last summer in which the Arcadia Group of Sir Philip Green agreed to release a claim amounting to £35m against the company.

Around a year before the company failed, Green sold BHS for £1. He has agreed to pay £363m into the pension scheme of BHS following months of outcry from the public and criticism from various MPs.

The interim payout follows the previous estimates that were made by the administrators of BHS that a maximum of 8p/£ would be returned to unsecured creditors which are totalling to £998m.

FRP has since been approached for comment and is yet to issue a response regarding the matter.