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Gazelle leaps from CVA into administration

8th November 2012
Page 8
Page 8, 8th November 2012 — Gazelle leaps from CVA into administration
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By Chris Tindall

A GATESHEAD haulier that entered into a Company Voluntary Arrangement (CVA) but defaulted on payments after one month has entered administration.

Gazelle Transport Services, which specialised in freight forwarding and had its own fleet and a licence authorising 20 vehicles, as well as 35,000ft2 of storage facilities, struggled to compete in tough trading conditions, according to administrator RSM Tenon.

A CVA was approved by credi tors in September and meant Gazelle was scheduled to make 60 monthly payments of £4,000, plus a one-off payment of £30,000. The arrangement showed creditors were owed a total of £764,000.

However, in a report lodged at Companies House, the administrator said the firm was already one month in arrears. “As a result of the failure of the CVA, there will be no distribution to the unsecured creditors,” it added.

Steven Ross and Ian Kings at RSM Tenon have been appointed to dispose of the firm’s assets. They told CM the CVA failed so quickly because of “an unexpected decline in sales compared with those originally budgeted for in the CVA proposal.

“It isn’t normal practice for a CVA to end so quickly, but the firm traded in a competitive market and competitors took advantage of its predicament. This has resulted in Gazelle Transport Services entering into administration and it has ceased trading.”


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