ALS assets sold in pre-pack deal
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THE BUSINESS and assets of Assured Logistics Solutions (ALS) have been sold in a £240,000 prepack deal, allowing creditors to continue trading with the Northants-based transport operator.
In a report to creditors, administrator Costas Morfakis, of Bond Partners, says the sale to ALS director William Allen, trading under new business name ALS E-Fulfilment Services, “was considered the most appropriate course of action”.
The report states that ALS failed (CM 22 September) because its only customer, Smiths Toys, halved the work it provided to the haulage firm, dramatically affecting its cashflow.
“At its peak, the company employed approximately 70 staff,” it says.
“The firm made most of the staff redundant shortly before being placed into administration and took independent legal advice regarding this matter.” The pre-pack sale was completed the day the administrator was appointed, 1 September, and, following an initial payment of £24,000, Morfakis says the remaining £216,000 will be paid in 10 monthly instalments.
“Suitable safeguards have been put in place to guarantee that the consideration will be received in full, should the purchaser fail to make the deferred payments,” he adds.
According to the administrator, ALS’ books and records indicate that unsecured creditors claims will total approximately £2.2m. It is not known if there will be a dividend.
Bond Partners declined to comment. Allan could not be contacted.