URGENT UPDATE: PPE Medpro, the controversial company linked to Baroness Michelle Mone, has been officially liquidated following a court ruling on October 26, 2023. The decision, made by Insolvency and Companies Court Judge Sebastian Prentis, means that the UK Government is unlikely to recover the £148 million owed after the company failed to supply 25 million surgical gowns during the COVID-19 pandemic.
This decision comes just weeks after a High Court ruling in October found PPE Medpro in breach of contract. The company had filed for administration on September 30, 2023, a day before the adverse ruling, leaving the Government and other creditors in a precarious position.
At the court hearing, barristers for the Government’s Department for Health and Social Care (DHSC) argued that PPE Medpro was “hopelessly insolvent.” Judge Prentis concurred, stating, “the only order that the court needs to, and should, make is that Medpro be wound up.”
PPE Medpro’s filing also revealed that the company owes HM Revenue and Customs an additional £39 million in tax, but currently possesses only around £600,000 to pay its unsecured creditors. This has raised serious concerns about the financial recovery for those owed money, particularly the DHSC.
The joint administrators for PPE Medpro have indicated that there might be potential legal claims against third parties that could yield substantial recoveries, although no further details were provided in court. Simon Passfield KC, representing the administrators, emphasized that they are best positioned to manage the liquidation process effectively for all creditors.
This swift action and the surrounding developments highlight the ongoing fallout from the pandemic’s procurement efforts, which have faced scrutiny over transparency and efficiency. The Government’s efforts to secure medical supplies have now led to significant financial losses and renewed calls for accountability.
As the situation develops, stakeholders, including the DHSC and other creditors, will be watching closely to see how the liquidation process unfolds and whether any recoveries can be made. The implications of this case extend beyond financial losses, raising broader questions about procurement practices and oversight in urgent public health situations.
Stay tuned for more updates as this story unfolds.
