BDR Logistics' administrators predict a El.lm deficiency for collapsed firm
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dormnic.perryiar b Lc°. ui< EARLY ESTIMA 1 LS PUT the deficiency of collapsed Frome haulier BDR Logistics at Elm, according to figures compiled by joint administrators Simon and Daniel Plant, The Somerset firm was placed into administration on 20 April shortly after it ceased trading, according to the statement of administrators' proposals.
The report says the firm suffered from its 0-licencing issues following its creation to take on the business of defunct firm Brian Rayner Transport, which left it struggling to obtain credit.
It also ran up large debts with HM Revenue & Customs (HMRC), which totalled £810,000 by March 2009; it then entered into a repayment plan with HMRC, "which the company failed to comply with".
It say-s:"The company's level of trade improved in early 2010 and an amended payment plan was agreed with HMRC.
"It continued to make payments in-line with the agreement until the end of March, at which point it began to suffer from increased cashflow difficulties."
This led to HMRC threatening winding-up proceedings, it says. The firm ceased trading on 17 April, with the intention of entering liquidation. However, finance provider Credit Agricole decided to pursue the administration route in order to protect its position.
An estimated statement of affairs accompanying the report puts available assets at £98,640. However, some £87,000 of this is made up from the potential proceeds from the sale of its vehicles, which it notes will be substantially affected by administration and sale costs.