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 FREEPHONE ADVICE LINE 0800 781 0990.

There is  free debt help and advice available through a variety of debt charities. For more information, we recommend you visit https://www.moneyadviceservice.org.uk/en/tools/debt-advice-locator Alternatively if you are a business owner, self-employed or in a partnership, we recommend you visit https://www.businessdebtline.org/.

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. You have the right to a cooling off period of 14 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.
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