URGENT UPDATE: PPE Medpro, a company linked to Baroness Michelle Mone, has been officially liquidated following a court ruling on October 5, 2023. The decision was made at the Insolvency and Companies Court, marking a significant blow to the UK Government, which is unlikely to recover the £148 million owed to it.
The company, led by Doug Barrowman, was found to have breached a contract to supply 25 million surgical gowns during the COVID-19 pandemic. This ruling comes after a High Court battle against the Department for Health and Social Care (DHSC) in October. Notably, PPE Medpro filed for administration just one day before the ruling on September 30, leaving the substantial debt unpaid.
During the hearing, barristers representing the three joint administrators sought to maintain the company in administration to settle some creditor claims. However, the DHSC, as an unsecured creditor, argued for the company’s liquidation, citing its “hopelessly insolvent” status. Judge Sebastian Prentis ruled to wind up PPE Medpro, stating, “The correct course is now to discharge the administrators and to compulsorily wind up the company.”
Records from September revealed that, in addition to the £148 million owed to the DHSC, HM Revenue and Customs is also pursuing £39 million in tax claims against PPE Medpro. Alarmingly, the company had only approximately £600,000 available to pay its unsecured creditors.
In court, Simon Passfield KC, representing PPE Medpro’s administrators, indicated that while there was one secured creditor, Angelo (PTC) Limited, registered in the Isle of Man, the DHSC was the largest unsecured creditor and preferred immediate liquidation. Passfield noted that the company had “sufficient property” to cover a debt of about £1 million to Angelo, with potential returns for unsecured creditors, including the DHSC.
Despite this, David Mohyuddin KC, representing the DHSC, dismissed any alternatives to the liquidation, stating, “The only order that the court needs to, and should, make is that Medpro be wound up.” He underscored the company’s significant insolvency, emphasizing that there was no realistic path forward.
The implications of this ruling are profound, as it not only affects the financial landscape for the government but also raises questions about accountability and governance in pandemic procurement contracts. As this situation develops, observers will be keenly watching for any legal claims that PPE Medpro may pursue against third parties that could yield financial recoveries.
This unfolding story continues to resonate across the UK, reflecting broader themes of corporate responsibility and public trust. As details emerge, the urgency surrounding this case is palpable, with significant financial stakes and political ramifications at play. Stay tuned for further updates as they become available.
