Director barred over CBILS breach

Firm went into liquidation with a total deficiency of more than £150k
Firm went into liquidation with a total deficiency of more than £150k

The director of an exhibition displays business has been banned for breaching the terms of a CBILS loan.

James Falla, also known as Jim Falla, was the director and majority shareholder of Phoenix Displays (UK) Ltd based in Redditch.

The Insolvency Service found that he had breached the terms of the Coronavirus Business Interruption Loan Scheme (CBILS) when Phoenix Displays (UK) obtained a CBILS loan of £73,000 on 23 September 2020.

Falla failed to use some of those funds to repay an existing Bounce Back Loan (BBL) of £50,000 that had been obtained on 18 May 2020.

Phoenix Displays (UK) went into Creditors Voluntary Liquidation on 16 November 2021, with a total deficiency of £150,807 and both loans unpaid.

Funding Circle was owed £73,000 for the CBILS loan, while NatWest was owed £50,000 for the BBL.

HMRC was owed £10,469 in PAYE and VAT.

The directors’ loan account was overdue to the tune of £44,666. This has not been recovered as Falla had no means of repaying it and no assets.

Falla has been banned from being a director for five years, with the disqualification effective from 28 July 2023.

He was born in May 1974 and his last known address was on Banners Lane in Redditch.

Phoenix Displays (UK) was dissolved following liquidation in April this year.

Falla was also a director at Red Fox Build Ltd (previous names Red Fox Exhibitions Ltd and Phoenix Exhibition Build Ltd), a dormant company that was dissolved in August 2022.