Administration - Case Study
Container Haulier Business Rescued Company's Circumstance
The company operated 17 vehicles and had over the years built up a
reputation as a reliable haulier with customers including international
shipping lines. The company had accrued debts to HMR & C due to a
number of factors resulting in a petition to wind up the company.
Solution
In March 2008 The Business Debt Advisor helped the company apply for a
validation order to allow the company to continue trading and an
Administration Order was granted a week later. The existing directors
were keen to buy the business back but firstly needed to apply to the
transport executive for a temporary licence to allow their newly
established company to trade as a haulier. The company traded in
administration for a number of weeks whilst newco sorted out its
licence and funding and the business and assets were then sold to
newco.
20 Jobs were saved and the business was preserved. The company will
proceed into liquidation so that creditors can receive a distribution
which is likely to be much higher than if the company had been wound up
as the employees claims were substantial. Also leasing terminations
claims were avoided.
The Next Step
The options for a financially distressed business need to be very carefully considered. Simply forward your details on our Contact Form and we will contact you. Alternatively ring us on our FREE ADVICE LINE 0800 781 0990.
All debt solutions should be very carefully considered. Fees will be charged if a solution is taken in order for us to advise and administer the most appropriate action - all fees will be outlined during your consultation. Retained payment may place you further into arrears. The Business Debt Advisor complies with the Consumer Credit Act and you have the right to a cooling off period of 7 days. It is likely that your ability to obtain further credit in the short term will be affected and this may also be the case over the medium to long term.