The Company tendered for contracts but failed
to provide for Crown monies in prices quoted to
potential customers.

The Company used an invoice discounting facility
to assist with cash flow. Late payments and
disputes over invoices resulted in the factoring
company witholding payments.

Mr Fyffe resigned as a director of the Company
following his disqualification from acting in the
management of a limited company under Section 7
of the Company Directors Disqualification Act
1986. Thereafter Richard Charles Bradshaw and
Victor Charles Kwantreng were the recorded
directors of the Company, and Mr Fyffe continued
to work for the Company, principally dealing with
clients.

On 20 September 2007 Merseyside Police
executed search & seize warrants against
the Company and seized the Company's records.
Allegations against the Company's officers include
fraud, breaches of the Private Security Industry Act
2001 and breaches of the Asylum and Immigration
Act 1996. However, the Company continued to trade
until 2008.

On 19 December 2007 officers of the Companies
Investigation Branch of the Department of Business,
Enterprise and Regulatory Reform were authorised
under Section 447(3) of the Companies Act 1985 to
investigate the affairs fo the Company. As a
consequence of this investigation, on 25 March
2008 the Secretary of State for Business, Enterprise
and Regulatory Reform issued a petition to wind up
the Company in the public interest. The grounds for
this petition were: -

a. The Company was insolvent.

b. There was a lack of stewardship by the
registered directors.

c. There was a lack of transparency as to who was
in control of the Company.; Mr Fyffe, who was
disqualified from taking part in the management
of a company for a period of seven years from
11 October 2006, continued to act in the
management of CTN Secutiry Services Limited
beyond 11 October 2008.

d. Breach of the Private Security Industry Act 2001:
Neither the recorded directors nor at least 26 of
the individual security operatives employed
by the Company held appropriate Security
Industry Authority licences.

e. Failure to maintain proper accounting records.

f. Failure to co-operate with Companies Investigation
Branch enquiries

Upon an application made to the Court by the
Secretary of State for Business, Enterprise and
Regulatory Reform the Official Receiver was appointed
as the Provisional Liquidator of the Company on
28 March 2008. The Winding Up Order was
made on 28 May 2008.