DRS acquisition leaves RJ Jones at a Elm loss RJ
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JONES Haulage's financial woes were prompted by a Elm debt from DRS (EU), the Northamptonshire haulage firm bought by the company in 2008, according to the administrator.
However, PricewaterhouseCoopers (PWC) said unsecured creditors might receive a dividend of 7%, based on current estimated realisations. Goodwill, intellectual property and assets belonging to RJ Jones Haulage were sold in a pre-pack deal to RJ Jones Group shortly after the company entered administration on 5 March, saving 145 jobs (CM 14 March). A PWC report said the firm had been profitable, and had made a £14.3m turnover in the year ending April 2012, but that the collapse of DRS meant the significant funding it had injected into the business was effectively written off.
"Having breached banking facilities with NatWest, the firm was unable to repair this breach and had additional demands from trade creditors and HMRC, with imminent legal threats," it added. "The directors concluded the firm was insolvent on a cashf low basis."
RJ Jones Group paid £410,000 for the business and assets. Group MD Andy Larkin did not respond when contacted by CM.