It is insolvent trading to me if you don't have a handle on all your debts and yet raise money which is insufficient to cover all your debts.
People managing projects need to create purchase orders and create contract commitments as they go. Then they need to accrue costs as they complete or undertake work. They also need to record and accrue revenue.
To me what has not been happening is no pirchase orders created and no cost accruals. But revenue hase been accrued or taken from the client. This may be intentional or project staff turnover created this problem.
Hence when people came knocking for their money RCR called the administrators.
Add to My Watchlist
What is My Watchlist?
