Aerospace firm director banned for 12 years over double bounce back loan

Disqualification follows collapse of Co Antrim business in 2021

Company liquidation concept. File and tabs with the words insolvency, creditors and debts. 3D illustration
The Co Down director of KMAerospace Ltd has been disqualified from being a director of a company for 12 years. (Getty/Getty Images/iStockphoto)

The head of a Co Antrim aerospace company has been banned from being a director for 12 years after applying for two bounce back loans.

The Department for the Economy (DfE) said Kevin Magee (42) increased his own salary using money that could have repaid his creditors in full.

KMAerospace Ltd, which was registered at Market Place, Carrickfergus, went into liquidation in November 2021 owing its creditors just under £58,000.

The company’s Bangor-based director accepted the 12 year ban on the basis of unfit conduct.

DfE said Mr Magee had provided a false and misleading declaration to Starling Bank when he applied for a second bounce back loan, just eight days after applying for an initial bounce back loan from HSBC.

The Bounce Back Loan Scheme was launched in May 2020 as part of the UK Government’s response to the Covid-19 pandemic.

It allowed smaller companies to borrow up to £50,000 with the government providing a 100% guarantee.

DfE said KMAerospace received £25,000 from both banks, adding that Mr Magee had also declared his annual turnover as £103,000 when it was estimated at £70,764 for the 2019 calendar year, obtaining an additional £7,309 as a result.

The department said Mr Magee had acted in a manner to benefit himself rather than the company by using turnover and/or the bounce back loan to pay himself a significant increase in salary when the turnover had decreased.

“If he had not paid himself this increased salary, KMAerospace Ltd would have had additional money available to repay all creditors in full.”

The department accepted five disqualification undertakings, with the court issuing two disqualification orders, effective from April 1 2024.