BDO Sports Media Group Plc, Sport Newspapers Limited and Noresport Limited - Allin Administration (together “the Companies") Statemont to Creditors pursuant to Rule 2.33 ff the Instency Rules 1986 and statement of Propesals under Paraagh 49 of Schedule BY ot the satency Act 1988 BDO‘TABLE OF CONTENTS. ITRODUCTION EVENTS LEADING UP TO THE APPOINTHENT OF THE SOINT ADMINISTRATORS “STATEMENT OF AFFAIRS AND STATUTORY INFORMATION ACHIEVING THE PURPOSE OF THE ADMINISTRATION. -MANAGENENT OF THE COMPANY'S AFFAIRS SINCE THE ‘JOINT ADMINISTRATORS: APPOINTAENT (CREDITORS CLAMS [EC REGULATIONS OX INSOLVENCY PROCEEDINGS JOINT ADMINISTRATORS’ REMUNERATION POSSIBLE OUTCOMES FOR THE COMPANY AND CREDITORS STATEMENT OF PROPOSALS UNDER PARAGRAPH 49 OF SCHEDULE BY OF THE INSOLVENCY ACT 1986 ‘appendix 1 - Statutory infermation ‘Append 2 - Draft finance statements Dppendix 3 Preappointment ie cost summary ‘Appendix 4 Posteppotntene the cost summary ‘Rependix 8 ~ Creditors pica to Administrators feas ‘Aopendix 6 Schedules of realtors Sports Maa Geoup Pe, Sport Newspapers ined ana Worse ited PageSports Media Group Pc ("SMG"), Sport Newspapers Limited (“SKL") and Moresport Limited (Ciioresport") ~All in Adinistration (together "the Comparer") ‘egltored Nos. 03769328, 0994074 and D408 respect, Regitred offices all sturtd at c/o 800 LLP, 3 Hardman Stree, Manchester, MO 347, In the High Court of Justice, Chancery Divison, Manchester District Rest: 606 of 2011, 608 of bit and 607 of 201, 1 tntroduetion 11 This reports accessed tothe creditors ofthe Companies and icorperates the Joint ‘Administrators preposals. We donot propose to cal a resting of creditors ta consider {his proposal onthe bass thatthe Companies have insuficlentatete to enable ws to make a distibulon to ursecured rectors athe than by way ofthe prescribe par. which we mention a section 6 below. raph 52 of Schedule Bt ofthe Insolvency Act 1986, a eat 10K of crehtore alla meeting they must not us using form 2.218 (attached) by 14 June 2011. Plese ntethat before such amecting canbe hel, we wl eqe a epost tard the costo convening the meting. Such deposit hay be pat subject fo approval ofthe ater cede 1.3 creditors donot request that meting are to beheld to consider the Jone ‘Adminstors" proposal, the proposals wil have been desmes to Be aporoVed in accordance with Rule 23315) ofthe Insolvency het 186. 41.4 The Jot Administ ators propose to continue to manage the afar ofthe Companies ad ‘realise the asetsnaccordance wth tid objective ofthe stator purpose of te ‘Adminstration. Te Jit Adminstrator alo propose to en the Agitation via Creditors” VolueayLigudaton i there are sficant nde to enable distribution to Lrsecuredcrettors under the prescrined pa, o, by way of deotion if there are Insucient funds 9 enable a dstrbution If appropriate the Companies Wil ext the Administration by vay of Company Voluntary Arrangement. They aso propose that they be discharged trom ability under the Adminstration per Paragraph 98 of Schedule BY of the solvency Act 1986, 28 days aftr Fg thee final report with the Regitrar of companies. 2 Events leading up the Appointment ofthe Joint Administrators 2.4 SNL was incorporated on 28 February 198 by David Sulvan ("5"), David Gold and Ralph Gold ("the Vendors). The primary busines ofthe Company waste pubsting ofthe atonal newspapes, The Daily Sprt and Suny Spar. 2.2 Avholly ovned susan, Norespart, was incorporated on 16 Otaber 2001 to pubis a ‘nunber of acltmegazine thle orespet cid not employ an sta ad wed te ‘Tesources of SML forts operations. Fr the remainder of thie report, Ml sr Hil be ‘eferred toa the newsoeper Dsiess 2.3. SG was incorporate n 1999 as Freedntrnet.net Limited and changed its rame to Interactive Werld Pie Limited Company in Av 2006 rer oft adnison to ‘A te changedisame to SMG In September 2007 pier tothe acquisition of aN In autumn 2007 Proto the acquisiton the principle atv of SNG asthe apply of ‘iia media to motte customers and the conpony ade proftaly. 2.4 The consideration fr the acqubiton of SNL as £50m. The purchase was faded through «2 £¢0m conditional lacing of shares on the Alternative lvestmentHarket CAM), th {he remaining Cio beng ceterrea (via deferred payment andthe sue f loan nots) ith view tothe enlarged group obtaining banking Folie to sty these outs|BDO secon ERTS muet 2.5 la November 2007, the group entered into a flnance agreement with National ‘Westminster Bank le ("the Sak). & £m revolving credit faciy was provided and fully {Fawn down tsa proportion ofthe deferred consceation ve to the vendors, together with» 2.5m lean, An vce Discounting fei was aso provide, 10 Sl, by BS hvoice Finance Limited RSI), 2.6 Belew fea group stretue dlagram to Hlstate the relationships betwen the group ferrari. 2.7 Netoliex Lime (Netcallee) the wholly onmed sbsiiny of SMG and provides adutt fantent to mobile phones and on DVDs. The main sree of aavertsing fr Neteolex was Inthe pablieatons pocucedby the newspaper busines. Telecom 2 Limited ("2") i= ponder of telecomuniatans services. 2.8 Hetcollex oom 51% ofthe share capital of 2 ad the rematring 49% is cwmed by prvate inclviual oth 'T2 and Netollen wl be cscssed in re deta tern my Feport. 2.9 The Companies achiseda turnover of {2.3m In year ending 31 ly 208. Whilst the Companies achieved an operating petit of tam, a net loss of £18m was incurred, The {oui attributable t exceptional tems of Cm asing a5 2 resulo the acquisition and lnmortsation and impalement charges associated with of intangie assets of £22, apagernent steric th impairment cherges to he effect the downturn inthe ‘Seon Fa on the newspaper marke, 2.40 On 6 sanuary 200 the Companies announced tat it ad breached is banking covenants. At this point te barking facile were renegeised, further capital of £1.68 vas, Introd by the Vendors and an averrat ality of £250k was provided by the Bank. 21 Inthe 47 months ta December 200 the Companies generated a tumover of £30m and {feutred an pera los of Ek n this prio fri impairment charges to good (of 22m were ppleé aed the Companies incurred a net les of 29m, 2.12. Throughout 2010 the Companies conned to experience a dowrtum in performance, ‘ue to reducing levels of eculation. in Septerber 2010, an arangement was made wth {the Bank to suapend\an repayment formant inorder to alleviate cash pressures 2.43, Asa resul ofthe detine in sales in respect ofthe newspaper busines, Management took Steps to attempt toimpove trading performance. The cover pice of the Sunday Spot to ncretsed a he end of December, a ul ettava etesh onthe day tle was Implemented io Fetuaty andthe Fiy edition cover price was increased atthe star of are|BDO Sper ru Nid "Shy 2.14 The Comparies experienced a further significa fl in the level culation asa resut of the severe weather experienced in December 2010. In ation, the costs asocated With newspint rose bye. 134 from January Increasing production costs, patting further ‘restre on the wording capital requement ofthe Companies 2.15 The Comparies were due to commence repayment ofthe lan provided by te Bank in Apri 2011 flow the deferment In 2070. However, the Companies orcas hat they ‘ould strgale to service the tan arc in ae arch 201, te Compantes approached the nc to negotiates farther determento loen repayment, Ae rent o the poor ‘wading nite 2090 ae ealy 2011 the Companies had acc-ved significant evel of ‘creditor arrears. patclar twas necessary for the Comparies to enter into atime to pay arrangement h respect of Cown debt totaling £180 2.16 Given the nancial position, the Camparies instructed 800 LLP on 24 Warch 201, to ‘market the busines and aes ofthe Compantes and advise on islvency eins. During the sles process 89 potentially interested parties were contacted. 2.47 iit negotiations were ongolng with interested partes the printer advised, on Api. 2011, tat they would not pit any future eins ofthe paper Without fl payment of the monies owed 2.48 On April 7011, SiG’ Board submitted a request to AM fr the shares of SHG to be pended. Ghenthe Companies were not ina poston to pubish futher eapie of the rewspaper they eased to trade an 4 Api 2011 and Netley of ntntion to appotat ‘atinsratrs were odged at Cour. 2.49 On 4.Apeit 2041 ar application fo he appolntment of Joint Administrators in respect of ‘he Compares was mace bythe Directors, pursuant to Paragraph 22 of Schedule Bt of the islverey Act 986, On the same cy, Patrick Alone Lannagan and Dermot lust Power were appointed Joint Administrators. Unde the provisos of Paragrash 100() of Schecle Br of the satvency Act 986, the Administrators carry ot thei futons jn nd severaly and neither Adminstvatr has exclusive power to exercise ay function. 2.20. At Appendir 1 arecord ofthe names ofthe Directors ofthe Companies and company Secretaries togethar with dtals of tet shareholdings. 2 Statement of Affe and statatary lafeemation 3.4 Weattach at Appendix 2 to this report statutory Information in relation tothe Companies: The Otectrs have not yet provided a statement of fats, eefore, We tach craft fsa statements at te dle of appontment, prepared with he ‘sistance of the recrs. These have been prepared from the records ofthe Companies Ercan able. The lt Adminstrator have elves he ocumers bt Favetnot carte cat sy ator Getted verison wok, hr ali me atl eats ifthe companies creators compte fron the Companies records and information provided follwing the Joint Administrators" appotnmet. 4 Achieving the purpose of the Administrations 4A The statutory pupse of an administration consists of tree objectives, and we now aedres the prope that has been made In tls respect 12) The fist objectives the rescuing ofthe Companies asa gong concern (he restructuring the busines ofthe Companies, resting in the srvival ofthe Companies We would comment that twas not pessbe to achieve this objective as fa real ofthe rector pressure Seng experienced by the Company and In particular ‘he demands being made bya nunber of key crear.|BDO seem cn a cence Morespert ined “thay 2014 1b) With exo to the second objective of achieving a better rest forthe retors of the Companies ar a whole than vould be ely the Companies Were Wound Up {without Fist ben In edminstation), this was ae posse to achieve given Ue Dusiness had effectively ceased to trade. ) The fal objective realising ropety In order to make a distribution to one or ‘more secured er prefarentl creditors. out employees were retaed to assist with the debt collection process nelutingrtsing voces and recovering invoices in ord te manise the collections respeet ofthe book debts, We expect to be able to ‘make dstbutons tothe Bank snd the preferential creditors therefore this objective ‘S oarenty being pursued. 5 Management ofthe afar ofthe Companies since the Joint Administrators ppatntment 51 Int Actions S.1 As discussed above 80 LLP markated the business and assets for sl prior tothe Sppaintment ofthe on Administrators, Given the level of interest, funding requirement nd ecko support rom Key creditors the Joie Acmistratrs wee not fa positon to trade the Companies Employees 5.1.2 Asa result of the Companies ceasing to trade, 70 employees of SNL were made ‘redundant fllwngte appointment of the it Aaminstaters 5:4. Four members of staf wee retained in oder to assist with the fhalsation of the Companies affnirsan to atthe Jon Adminstrator. These staff have snc been ‘made redundant Joint Administrator Stettary Obligations 5.44 Upon tel appointment the Joint Administrator! are requ to comply with various Statutory ties andoblgtions 5.4.5. Thedoit Administrators took steps to ensure that all of the Companies’ creditors were notified of tel appuintmen. Natio of Appntment of JoirtAdinstration was ed Bt Companies Howe The appointment of he Jolt armstrators was advertised in he {don Gazette andthe manchestr Evening News 54.6 The Companies reghtered office was changed to 3 Hardman Street, Spnnngtieis, Manchester MS 3A by way of Frm ADT SA\7Nocfeaton of ee spotntment ofthe Jon Amina ws pri LW MARC by way of Form VATZ2. 4.8 The Joint Administer fsbed Notice requrag submission ofa Statement of Aas of the LLP to certain of tha LPs members. 5.19) The Jolt Administrators have requested the Directors, along with those nsviduals that were Diectors nthe three year perio preceding the Jone aninstratorsappotmont, “Complete questionsires. The questionnaires are designed to assist the Jolt. ‘minstrators in the preliminerysvetigatans and in acting thelr eilatins eajred bythe Company Directors isquatfistion fet 1986 to sit a return to the ‘ieqatiiention Unto! the Department for Business Inovation & Skis concerning the conduct ofall elvan Directs.Aanintatr” propos regarding Spots Mala Group Pl, Sart Newspapers inited and "resorted hay wot 5.10 Upon their appointnent the JantAdmntratrs immediately arranged insurance ofthe ‘Companies ues tothe extent tht they were no sol tothe Purchasers. 5.411 The doit Administ ators appointed Sanderson Weatherall LLP ("Weatheralls" to provide {ovice on the ylation and sale of certain ofthe Companies’ ase. Assots 5.2 Book dees 5.2.4 At he date of appuintmant the ok debt ledge totalled £.3m. Inoics toalirg £10k fave been reised falling the Joint Administrators’ appolntnent elation tothe final ‘week of trading. Therefore, the tla oestanding book debt ledger was EA 5.22 StL operated two ledgers (cradation and advertising) and bath were finance by an inva nance fealty provided by RASIF. The ccuaton ledger is hight concentrated ‘with vo debtors arcunting for the majority ofthe debt which totaled 1.6m. To eae, sm hasbeen rected respect of tase debt, The Jat Adminstrator: wil ‘continue 1 Work Cards the cllection ofthe remaining balance. 5.2.3. The advertising leer related to adverts placed Inthe newspaper. The balance utstanding in rexpect tothe advertising ledger totalled F.6m atthe date of Sppointment, however, ths Icuded intrcemoany balances of £1 Am wich ae not Calectabe, Aftertese accounts have been excluded, the sales ledger balance totalled fieak 5.24. Todite, book deb: receipt totaling £98k have Been reeled in respect ofthese debts ‘The Jit Aanistrators wl eatin to Work towards the cllectin of the retin balance 5.2.5. Upon aplntment RAS were wed (970K, AS result ofthe debtor recep that have been received crecty by BSI since appointment, RBSIF have now been pain ul 5.3 Intellectual property related to the newspapers and adult magazines 5.3.1. As discussed above, prior to appointment, the bsinss and assets of the Comparies were riarketed forsale. However, it was not possible to secure a potential sale prior tothe “pointer of the Jot Administrators. We vere ware that several ofthe parties that faa expensed an hsret inthe azste of the Companies remained interested. We therefore re-contacted the Interested parties follwing appoiniment. 5.2.2 Anumber of offers were received in respect to the newspaper andthe magazine. Paling further aegtitone sn intend offer of [30k was received for the "Sunday port tle and catsin back eve and E2.5k respect of certain chattel assets from Sinay Spore (ot Umea (S501) 382011 fs owned and controle by Us ana era former employes of the Companies, 5.33 The offer ftom sSi011 was the highest offer received and was therefore accept. ‘bition S201 reed to fund Lk of the it Adinstators Lega costs i elation to thesale 5.3.4. Areview of the Cempantes records indicated that Qultiynn Limited, a company owned bya party aoc to SS2011, owed SKL CaS in relation to newspaper advertlsng. We terefore mage the sai ofthe tile conetional Upon the recep ofthe cutstancing ‘de, Therefore nadliion to the sale consideration, the net debt of £41 was receivedAsta papenteoprdng B spores co 8 et ee ‘Sst nes Shar 54 Further sles of the remalnng titles ond assaciated intellectual property 5.4.1 Anuber of offers have been received for the “Dally Sport” tite an the two adit Imagazines published ay Marespor. We continue to progres this interest Given the (evel of offers, weave requested that the puchases contiute towards the saint temioerators egos to ensure that realisations forthe credtors are maximised 54.2 Whig the Companies have an extensive image archive the Jin Administrators! agent $nnderson Weatherals, have aden thatthe copylht In elation tothe rages renats ‘th the erginal photetepier Therefore It is untely that we wil be abe tose this seve 5S chattetassets 55.4 Asdlecassed above, certain chattel assets were sold to $5201 for £2.5K. can confi thot the it Adminstrator” agents, Sanderson Weatherall, confimed acceptance of the offe. Theremating chattel asets neve been sld by the Joint Administrators’ gent realising tot of Eek 5.8 Neteller ond 72 S64 As dcutsed eater i this report SHG os the entire share capital of Netcollex. Netcolexonns 51 the share capital of 2 and the remaining 4% ' med by a paivate individual 5162 Given the shareholdings are assets of the SMG they wil be realised inthe Adminstration. ‘With te sistance ef the 00 LLP corporate trance department we have prepared a {st oF potential nterzted porter. We are currell reviewing tis stand te franca ‘projections with the management of Netalex and 2 and tis the Joint Adminstrator” ‘intention to commence the markating of the shares shorty. One ciferhas already ben received forthe shores f Neteaiax 6 Creditors clams 6.4 Secured creditors Nationt Westminster Bonk ple (“the Bonk”) ‘6.41 The Banas fixe a floating charges over the assets ofthe SG and SNL registered on 279 pecember 2007 nation the Oak has ied aa lating charges over the assets of Iorespore rogisteredon 13 May 2008. The Bank's lending fs also supported by 8 cororate ftnrantee between the Companies 6:12. The Bank’s charges inrespect of SHG and SNL Were realstered pris to the charges held bythe other secured creditors, In addttan, the Companies and the Secured Cedars Fave entered int. dad of priority. Therefor, the Bank wil rark as te priority heed land floating charge folder over the assts of te Comparies wih the exception of RAS ‘no have pronty ovr book det coletons up tothe value ofthe eutstaning balance (6.1.3 The Bank provided aterm lan to SMG and curent account facies tothe Companies. ‘the date of appottent the Bank was owes E6057|BDO Spuatnan cougar eat "ores nied BB nay 2081 BS invoice Finance Limited ("RBS") {6.14 RASIF provided an invoice scouting tality to SNL. SUG and SL have granted feed and floating charges to RESF reltered 5 Jarunry 2603. Wht RBSI ecuy Is ‘glared ater ta of the Ban's, RESIF have roy over book debe realisations {64.5 _Atthe date of appintment RSI was ove £9704 in respect of funds advanced tnder the invoice alscousng acy. AS avied tn earl Int reprt, RASIEhas been repald tn ful (eld Group Interntional Limited (“Goa Grasp") 64.6 The Companis rented fed and cating charges to the Gold Group ll ester on 15 ‘ay 2003 6.1.7 Weare stil waiting for confirmation ofthe indebtesness of the Companies, tothe Gold ‘Group, atthe date ot my eppointment Roldale Limited (Rovale") 6.1.8 Tue Companies greted fled and floating charges to Rokvae al registred 13 ay 200. ‘or the soto! amounted fom sorted companies une the terms of ‘agreement entered into by the Companies, no amounts are due to Roévale. (62 Preferential credors 6.2.1 We expect that preferential claims, estimated at £83k in respect of emplyee's accrued holiday pay and wege areas atthe date ofthe Jone Adminstvaters appointment, ll be paid in ft 63 Prescribed part and unsecured credits 6.3.1 Under the provisos of Section 176A ofthe Insolvency Act 198, the Joint Administrators mun tate the amoantof funds ayiabe to neacure creitor in expec ofthe Preserbed Part Ths proven ony applies where a company has grated floating ‘Charge to credit after 15 September 2003, 6.3.2 Su grated float charges to each ofthe chargholders after 13 September 2003, however, there ll not be ay floating charge realizations n respect to SMG a the Svestinents in thesubsiares wil besubject tothe Bank's fed charge, 63.3. SL granted floating charges to each ofthe chargbolders after 18 September 2003; the preseribns part vl therefore appy. Saeed en cirentestimste, the prescribed part Erllable to she rescued redtrs of SNL wil be nthe region of 42k 6.34 Moresport granted floating charges to each ofthe chargholders ater 15 September 2003; the prescribed part wil therefore apply. One book debt eaisation anticipated in respec of MS are this relates to amounts owed by the dstrbutar of the magazine Shou this be eased, the prescribed part avalble to the unsecafe creditors cated to be ithe region of E10. nthe event hat the prescribed pat less than lok and tne Jolt Aaitratoscosier he casts of titling the funs ‘dspropertorate tothe benefit to creditar, the prescribed part may nt apply. 6.3.5. The book and recods of NG, SMLand MS showed unsecured creditor clans to be £133, ryt and tak respectively. Plone note that the schedules ve Been taken from the books and records and wil nt affect any crediters" aft ta seek a prove aca for 8 ferent amount.[BDO smoot st Susan 64 Shareholders of SG {6.41 The claims of shayhaders in SG rank ater thse ofthe clans unsecured cretrs. Based on present infrmatin eallatlon wil be auficint to enable a dstibtion to be made to shreholes. 7 EC Regulations on solvency Proceedings TA Weare required unde the nsotvency Rules 1986 to state whether and ifs the extent to lalich the above replations apply ta these adminstations. In is particular ease the EC Regulation wil aly n respect of these acmiistations and these proceedings vl be dhe main proceeding as provided by rtcle 3 ofthe aforesaid Regulation, 8 dolne Administrators’ Remuneration 4.1 Pre Administration casts 1.1 Under Rule 2.67 ofthe insolvency Rules 1986, certain costs incurced in preparation end planing fr the amination may, ih the approval of the credtars, be approved for payment from the Adminstration eiate, as an expense ofthe Adminstration. 11.2. Please als find atta-hed at Appendix 3 a schedule tat summarises the time that bas been spent in preparing forthe aamistation prior to the Joint Adminstrator? fppointment, Ths bows total of 418 hours at an average charge out rate of £287 per ow. 8.4.3. As previously adie, we do po intend to cal anna meeting of creditors on the basis {hat the Company has Insufcent assets to erable a dividend tobe paid to unsecured ‘reitors other than by virtue ofthe prescribed part. On this bass bth the mt, ‘dinstratr’ preappantment costs and post appointment remuneration vil be ‘bject tothe approval ofthe secured an preferential cecters as stout Rule 2.406() afte svency Rules 1986. 'We wil refer request authorsten from ‘he Bank od the preferential creditors in dus course. ‘Wie have agreed wth the Benito int the remuneration ta espect of pre ‘diinsration casts to £25k 4.4.5. Prlor to Acminstraten the propoted Joint Administrators obtan egal advice frm ‘Aadlesbaw Goddard The costs elation to thi advice totaled £13,400. We wil seek the Bank's consent f payment ofthese Fes 82 Post Administration Coste 8.2.4 Kindly pte tune the ref the svn Res 98 the ee Ais aos breobges to fix ther seater accordance i Rte 21082) of the slveey ule 1966, Tis pei remuneration to be fed tbr aba percentage f the valu of the property with wiih the soln Admbnlstrators have to deal by reference tothe tie. {the Joint Acminitrators and thi tlt spend in attendleg to nates this Datnnistration or, aed arent. 8.22 Altached at Anpend sa schedule that summarises the time that has Been spent in {eating with mater the Adminsations up tothe date of hs report. This shows 3 {otal of 469 hours at an everage charge out rate of £222 pe hou. 8.2. Foryour guidance we attach at Append a Creditors" Guide to Administrators Fees together witha docener that outines the policy of BOO LP in respect of fees and dsbursements[BDO pote te cg nt oa 92. 10 "rempre ined hay 014 Possble outcome forthe Companis “Te insolvency Act 1986 and nslvency Rules 1996 pode a varety of option regardog the posible ent autes fr the Companies fom the Adminstrator beng primary 2 Company Voluntary rangement, Liguldation or dsolutlon of the Company. Te the Sint Administrators recommendation and proposal, as detailed below, that there are Suffice funds to enable a ditrbutlon to urcecured creditors under the prescribed fart the Compery shou ext the Adminstration via Creditors’ Voluntary Liquidation, it here ae nsffient funds to enable a dhvdend tobe pad to ursecared creditors, they shuld erange forthe Company to ext the Administration by way of dsluton purtuant to Parageh 84 of Schecle Bt of the insolvency Act 1986. The Join. ‘ainsratre wl leo conser andi ought appropriate en the Administrations by way of Company Vlutary Arrangement. Statement of proposals under Paragraph 49 of Schedule Bt ofthe Insolvency Act 1986 In accordance wth Paragraph 49 of Schedule Bt ofthe Isovency Act 1985, the Joint ‘dminstratore ave the folowing propsals which will be deemed to be approved if we, ‘Sino seceve «request focal an iil meeting of creators by credtors that are Wed fhore than 10% In sale ofthe total vale f the relevant Company’ debt. Formal Proposal the Joint Administrators propose that a) They continue to realise assets in accordance wth objective 3of the statutory purpose of the Adrinstrations 1b) They ake payments, when and f valle, tothe secured and preferential Gedo. ©) tens are sficent nds to erable a cvdend tobe paid to unsecured crestor, they shuld aang fr the Companies to ext the Administration via Creditors! {Voldetary Ligation pursuant ta Paragraph 83 of Schedule BY ofthe solvency Act {ae and that atric AleanderLannogen and Dermot tin Power be appointed Joist Ligldtore and wil act tty ane severly. NB, Under Paragraph 637) of Schedule Bt ofthe Insolvency Act 1986 and Rule E147) ereduors nay nominate ferent qucatrs, uth the absence of such romination te sbove named weuld became the euidatrs 4) thereof rutin funds to enable a vided to be pl to unsecured rector, they should aang fr the Companies to exit the Amistration by way of ‘Ssbluion pusuat te Paragraph 4 af Schedule BY of the lasatency Bet T9B6 «appropriate the Contes wi ext the Aamnstrations by way ofa Company Voluneary Arangement. 1). Creitrs consider and f shout ft apoin. a Creditors" committee to sist the loint admitaratore euch committe must corpse betwee 3 end creditors) ihe absence ea cteitors committee the Jolt Administrators propor tht creditors approve the vemunerstion ofthe doit Administrators on ine cost bassa BDO ncn “Bay 1081 ‘ther resolution s pu tothe cretors: 1) That the Joint Administrators be cscharged from ably under the Administrations per Paragraph 9¢of Schedule Bt ofthe Insolvency Act 1986, 28 days after the int Satirist’ ling ther fal repre and sencng itt creditors Dated: 25 May 2081 Foe ii ida gas” beste 10Appendtct Sports Media Group Pe, Sort Newspapers Limited and Woresport Limited Statutory iterationCompany Number: Date of ncorperation: ‘Adres of Registered Office Directors: Company Secretary Nominal Share Capital: Registered Shareholders: Det of shareholders avaiable pon request Traking Results: PeriodEnded Turnover ‘e000 Draft Accounts forthePered 19,361 ‘arwary 10- Sh Decernber “0 tavern 30937 o tavgstor- 29,394 Sy 08 Sdogueoe- 14,388 sty or Sport Media Group ole In Adminstration Statutory Information oso 2108/1099 10 800 LP, 3 Hardman Street, Manchester, M3347 Formerly 19 Great Ancoats Sect, Manchester, 6 487 Aodeew Fiiting Net Gordon Robertson Willa Waren Rsinson Robert Nel Jobson David Jon Baey Sohn fail Maddock Neil Gordon Roberson £247,106 - vided into 9,€42, 389 ordinary shares of ob2s exch No of £0.0028 ordinary shares held eS Grose Net Profit —_Director?’_—_Balanco on Profit (after tax) remuneration PALAVC 000 “e009 "e000 e000 Bans ms Unioown 4.511) 5310 (6,648) 94 13299 18,009) or (13,246) Biidends bad: 6.20, 7002 36m 39 3333‘Company Number: Date of Incorporation: Address of Registered Offa: Directors company Secretary: eminal share Capi Registered shareholders: sport Media Group ple ‘Trading Results: Period Ended Tumover Draft Accounts 14,807,235, forthe Period ‘anuary 10 31 December 0 taguston- 23,7475 December © tseptember 19,438 199 or Fly os 1 september 23,904616 06 31 Aust a sport Newspapers Limited In Adminstration Statutory Information swear 25/02/1986 ‘fo BOO LP, 3 Hardman Stee, Manchester, NB 3A Formerly 19 Great Ancots Steet, Manchester, MED BT odrow Fin Nell Gordon Rebertion Nit Gordon Robertson £1,000 - divided into 1000 ordinary shares of £1 each No of £4 ordinary shares holé 70 Gross Net Proft. —_Dractors’ Balance on Prot Gfter tax) remuneration PEL ALE e e £ 6967360, 1,098,035 Unknown 102,195 135,758 125,876) 30761 (95,040) 2asey7e (128,10 Net 130,026 Bidens pale (2,837,000) A2seest —ame924) 99,3844 193,140‘Company Number: Date of incorporation: ‘Adress of ResKstered Os Directors: ‘Company Secretary: Nominal Share Capital Registered Shareholders: Sport Newspapers Lites ‘Trading Results: Period Ended Turnover Draft Accounts 398,011 forthe Period anuary 10 31 December 0 Aven o8- 687,516 3 December {september 648,903 or Hau 08 4 september 928,797 0631 Aust o orespert Limited In Aaminstratlon Statutory Information 08846 s6rs0/2001 fo 800 LP, 3 Hardman Street, Manchester, MB 3AT Foner 19 Great aneots Street Manchester, MAO 8T Andrew Flog Nel Gordon Robertson Nei Gordon Robertson £2 vided ito 2 ontinary shares of £1 each No of Et ordinary shares held Gress Net Profit Directors’ Balance on Proft after tax) remuneration PEL Ale e A : c 5407 59,581 Unknown 25,122) suast tty ° (284703) soars 5757 ° 282,202) 1197.78) ° 287.979)IBDO oe sop Sports Media Group Pc, Sport Newspapers Limited and Meresport Limited Draft Financia taterestsSport Media Group ple Draft financial statement as a 4 Apel 2011 Assets ASSETS SUBJECT 0 FIED CHARGE ue to Fnac coageolie atonal esmintar are repre .£2.07 BS imc aes ited repre 031.08 Gra erstonl ited ested 2.04.08 15.0509 Feddate tec repre 13.05.08 Sera (fen) enrsFndcrgcaler ASSETS SULECT TO FLOATING CHARGE Supls tom Fe hare elton exudate to Freee Crear: Liabilities PREFERENTIAL CREDITORS ‘nated spl eval to lng Gare Cedars Fsting chase Cato aol Wenner ban ple resster39.7.07 35 ve rare Linted revere 9.08 ‘oi Gra terial ied eee 7204.08 15.05.09 Falanteinted reine 950508 touted spo as ec Foes urge ven andi eats deicteny argue ects sued andeated up eaptat retary Sues tested ttl deiceney as repas neers (osname) (70360) grea, ‘00, TET ceasoare) 70.08) ama (gsi,sqereneeaper inte fess tree te kt enh DE Statics Sy sp ang ees onan rene ines nite tinting cee nee ‘ethos mene! (Etageipeewatns ese 9 everett ene id ie pre rts a 00 woe om) wwima com ame ‘vem si, aT omMorespor Limited Draft financial statement a at 4 Apa 2011 Assets tect ep ° sup00 busta Fez crogese tout ese tak reed 10808 Goxoar Foiled ested 1.0808 ‘aco (od up rat ied teed 15.05.09 omar spleen) ere ed oui, | Liabittes reseed at seam snip avait est neg es 29000 teal vein Bape ceed 05.03 oem etl reed ated 3.0509 00) Cid tral nd ester 5.05097 women, nated pt atte Ftig arte [7 Tod ceto 59 tnt cteny cere crs [a ray Sate a tne tt tency ree mnt ces|BDO sopentes Sports Media Group Pl, Sport Newspapers Limited and Maresport Limited Pre-apointment Tne Cs summarywn ee ae fee eee [ee ors02 9 Toa eM6t soy puma a 2] agendy oy pax pstueRD omy Jo Gems oxy efoug —pemey oN|BDO povencs Sports Media Group le, Sport Newspapers Limited and Moresport Limited ‘amination Time Co SummaryHouse Hoe sosa pas 9 ay amedy re BBE pHBHEND pL JOKERS vsssi00 Heay- PUT Hodes PMNp ~GEREGEEGG Sepa 3 "Hueswez 9 rroeparea Wong Pag 2m 20s HRENGAY sue pe padLEND ox 30 KeENS ‘oassi00 av-pryurysidedsuoy uods oes omeNiia a cc rrozswezestosvrep wou pope om ey ggomy sey poe paBrNRD Jo Krew ssis100 Weary =214 01D epOH OS HRHDIMY DOMEIBDO | _ seers Sport Medla Group Pe, Sport Newspapers Limited and Horesport Limited ereditors Guide to Administrators fees|BDO Sports Media Group Pl, Sports Newspapers Limited and Moresport Limited «Allin ‘eministration (tepether "the Companies") In accordance with bet practice | provide below details of pols of 800 LP in respect of fees {nd expenses foe work it relation tothe above Isavency. ‘he current charge out rater per hour of tft within my fm who may be volved in working on {he inselvency, flows: Thick aa way niles that sta ata sch races wil wk on th RADE E Parnert 40 Parte an Director a Senior Manager i298 anager 2332 Distant Manager 135 Senior Executive 70 Executive a9 “hnior Executive 1 ‘cashier 70 Trainee a Suppor stat Secretary a ‘he rates charged by 8DO LP, 3 Hardman Street, Menhester, MS 347 are reviewed in December fd July esch year and are sjunted tote account of Ilation athe fens overheads, “Tine spent on casework rcorded dicety tothe relevant case using a computerised time [beording sjstem and theneture of the wore undertaken recorded at that tie. Units of tine {anbe as anal ac 3mm, BDO LLP reeods werk in respec of slvency work under the Tellowaing categories Pre Appointment Steps upon Appointment Plannirg and Srategy General Administration ‘eset Realsaton Management ‘Trading Related Watters Employee Matters (raster Claims Reporting Distribution and sure Other ses Under each of the above calegries the work is recorcein greater deta n sub categories, Please pote that the #1 categories provide areater deal zhan tho sx eategries recommended bythe Recognised Profssenal Bodies who are responsible for censing and montering frelvercy practioner. Were an officeholders remuneration s approved ona tn cost bass the time voiced tothe ‘case wl be subject to VATt the proving rate. \Where remuneration hasbeen approve ana time costs Bass a perio reprt wil be provided {any committer appoint bythe crear rn the abuence of committe to the creas, ‘The report wll provide a eakown ofthe remuneration drawn and vl enable the recipients to see the average ates of sh costs|BDO 1) other Coss “ner expenses at rcuted in respect ofthe Insavent estate they wil be recharged. Such expenses canbe vise to to eaten 2) category 1 “This heading covers expenses where EDO LLP has meta specie cost n respect of the insavent exate where payment hasbeen made toa third party. Such expenses may include fems sch 2, Scvertsng, cous, travel (oy publi transport), sachs at Companies House, land retry [Senrches foes in respect ef swearig los cecument, extemal printing casts ee, In each case the rechrge wil be reimbursement of a pectic expense cured _furterdeburement under this headings the cost of travel where staf use ether ther on ‘eis or company cars tavellng connected ith tho faatency. In these cases a charge of 40p pr mile eased with isn tne with the lland Revenue Approved Mfeage Rates (median {eas tan 10,000 miles per annum) whieh the amount te rm pays to staf. here appticeble,sbusements willbe subject to VAT at the pevalling rat, 3) Category 2 Additionally some fem recharge expenses for example postage, statlonery, photocopying ‘hargen, telephone and fc cots, whith annotecanariealy be recorded in respect ofa etch “Specie caso, Such expens, hich ae apprtoned to cases, require the approval ofthe ‘Gcltors, before they canbe rain, end these ae known ae category 2 dsburseents, The Policy of BDO LL, effectie fom | Ju 200, snot to recharge ary expense which f nat a pectic core tothe cas, therefore ther wil be o category 2 asbursements charged. category Peaebursaments, becausetey are imprecise, require approval bythe creditors before thy can becrawn. eoour ‘ay 011