Phones4U Finance £37.4 million of VAT liability deemed provable claim

By Caroline Salls

Pittsburgh, Aug. 8 – Phones4U Finance plc’s value-added-tax (VAT) liability ranks as a provable claim and not an expense of the administration of the company, according to a news release.

The company announced to the holders of its £430 million of 9 ½% senior secured notes due 2018 that the £37.4 million of VAT liability is related to bills of exchange.

According to the release, Phones4U’s administrators stated in a previous progress report that they intended to seek directions from the court as to whether the liability to account for VAT ranks as a provable claim or as an expense of the administration.

The administrators made an application on April 11 to seek these directions, and HM Revenue & Customs (HMRC) was joined as a party to the application.

Phones4U said HMRC confirmed the ranking as a provable claim.

Accordingly, the company said the administrators will administer the assets of the estate on that basis and will take the necessary steps to discontinue the application made to the court.

Phones4U is a mobile phone retailer based in Newcastle-under-Lyme, England.

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