Bell's creditors will take a loss
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by Karen Miles • Hauliers owed money by Bell Lines may receive only part of their cash, say accountants acting for the troubled operator.
British and Irish hauliers are owed around £10m by Bell—approximately half of its total trading debts. Now the accountant put in charge of the company says that the haulage subcontractors who carried containers for the line may be asked to vote for a reduction in their claims.
He says that this plan— known in Ireland as a scheme of arrangement— could be the key to Bell Lines' survival.
Bell Lines was placed into examinership by the Irish High Court meaning that payments for work carried out since November have been frozen (CM 13 19 Feb). David Hughes of Ernst and Young was appointed as examiner on Monday (17 Feb) and will be orchestrating the survival plan.
He says: "I'm somewhat optimistic that we can put something together.. .the fabric of the business has been maintained, it has been trading reasonably well in the circumstances and I'm hopeful that there will be someone who will be willing to inject some more money into the business."
The Irish Road Haulage Association says that it has secured agreement for hauliers to be paid weekly in cash for any Bell Lines work they take on.
It has also negotiated with Irish banks to support hauliers temporarily in difficulty because of Bell Lines' problems.