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EH Lee's bank withdrew funds following tax arrears
Page 7
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dominic,perryldrbi.co.
FAILED PETERBOROUGH haulier EH Lee had been having problems meeting its PAYE and NI commitments since the early pan of 2009. according to its administrators, and closed owing around £2.1m to creditors Ian Carr and John Whitfield from Grant Thornton were appointed as joint administrators to the firm, which had sites in Peterborough. Lincoln and Doncaster. on 29 January In his statement of administra
tor's proposals. Carr says EH Lee I had entered into an arrangement al with HM Revenue & Customs 2,6 (H M RC) in June 2009 to pay back
its PAYE and NI arrears The company had to come up with a revised payment schedule for HMRC, leading to its bank. Barclays. asking Grant Thornton to conduct a short-term trading forecast in December 2009.
Although it felt the company was in a position to continue trad
ing in the short term. the situation worsened through January 2010. and by the week ending 29 January, it was effectively insolvent.
As a result. Barclays withdrew its support with debts owed to it totalling £1.1m and the administrators were appointed.
Both the transport and waste management elements of the business continued to trade. with 26 redundancies made immediately.
The Doncaster site began a close-down soon after the administrators' appointment. says Carr, with Lincoln following when no buyer came forward. The Peterborough waste transport operation was subsequently sold for £66,000, which included 21 vehicles All employees were made redundant.