No pay-out for two years, clients told
CLIENTS believing they are owed money by a bankrupt lettings agent should not expect a pay-out for two years, the executive in charge of the estate has said.
Last month the Western Gazette revealed that Terence Sherwood (pictured below), 71, of Milborne Port, was made personally bankrupt in April.
Branches of Sherwoods Lettings Agency in Taunton, Dorchester and Sherborne – where Mr Sherwood is listed as the sole trader – went under the control of insolvency practitioner David Meany.
Mr Sherwood disputed the bankruptcy and was subsequently granted an interim court order to freeze bankruptcy proceedings while a repayment plan was put to creditors, allowing branches to continue trading.
But on Tuesday Mr Meany said Yeovil County Court dismissed the interim order after creditors rejected the proposal, bringing the bankruptcy back into force.
He said: "We now believe there to be 600 creditors, who we have contacted so they can make a claim. I would advise them not to expect a payment for two years.
"We are also in negotiations with lettings agents who are interested in managing the branches."
The lavish lifestyle of Mr Sherwood was laid bare in the 100-page repayment proposal presented to creditors.
The plan called the business "rescuable" but suggested claimants would have to wait up to five years to receive their money.
The document disclosed Mr Sherwood had invested £58,000 in "several cases of fine wines" with now defunct Bordeaux UK Limited.
He is now a creditor of the company, which went into administration in 2011, and regarded the assets as "worthless", the document said.
He said "at no time did he intend to sell" his five-bedroom home which he shares with his wife at Lower Kingsbury, Milborne Port, valued at £800,000.
This is one of three properties Mr Sherwood co-owns with his wife. He also owns three cars, including a Porsche 944 S2 Cabrio, and a timeshare in Florida.
The document blamed unpaid tax debts on several factors including "family tragedies" which caused loss of "concentration and motivation." The proposal claimed Mr Sherwood is owed more than £20,000 by five people including ex-employees.
Mr Sherwood was not available for comment by the time the Western Gazette went to press yesterday.