A Lancashire man has been disqualified from being a director of a company for 11 years after applying for two bounce back loans worth £100,000 when he was not entitled to.
John Goodrick, 53, of Cock Robin Lane, Catterall, Preston, applied for two bounce back loans for his firm Pantheon Energy Solutions Limited, totalling £100,000, contrary to the terms of the bounce back loan scheme.
During the pandemic, a Company was entitled to apply for one bounce back loan of up to 25 per cent of its 2019 turnover up to a maximum of £50,000 under the bounce back loan scheme.
Pantheon Energy Solutions Limited commenced trading on October 17 2019.
Financial statements for the period ending October 31 2020 listed the company’s annual turnover as £4,388,993.
Based on this information the company was entitled to one bounce back loan of £50,000.
On May 4 2020, Mr Goodrick applied for a bounce back loan with one bank for the sum of £50,000.
In the application, Mr Goodrick declared: “I/We confirm that this is my/our only application for a bounce back loan for this business, and I am/we are not part of a wider group which has already received a bounce back loan.
“I/We confirm that I/we (including as part of a wider group) have not yet obtained, nor am I/are we in the process of applying for, a loan through either the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS), or the Covid Corporate Financing Facility (CCFF) for this business unless those facilities will be refinanced in full by the bounce back loan which I am/ we are now applying for.”
However, on May 11 2020 Mr Goodrick made a second application for a bounce back loan with a second bank for the sum of £50,000.
The proceeds of that bounce back loan were paid into his firm’s bank account on the same day.
In that application, Mr Goodrick confirmed: "I/We confirm that this is my/our only application for a bounce back loan for this business, and I/we are not part of a wider group which is in the process of applying or has already received a Bounce Back Loan.
“I/We confirm that I/we [including as part of a wider group] have not yet obtained , nor am I/are we in process of applying for, a loan through either the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS), the Covid Corporate Financing Facility (CCFF) for this business unless those facilities will be refinanced fully by the bounce back loan which I am / we are now applying for."
A notice from the Insolvency Service states that on May 13 2020, Mr Goodrick signed the bounce back loan agreement with the first bank, confirming his application.
This was two days after receiving the bounce back loan from the second bank.
On May 14 2020, the bounce back loan monies from the first bank were paid into Pantheon Energy Solutions Limited bank account.
Overall Mr Goodrick claimed and received £100,000.
The two banks are creditors in the liquidation of his firm, and have claimed a total of £97,832.15 for the outstanding bounce back loans.
As a result, he was banned from being a director for 11 years.
The order started on November 23 and will run until November 23 2034, when Mr Goodrick will be 63.
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