Deben snapped up Elite assets for just £75,000 By Chris
If you've noticed an error in this article please click here to report it so we can fix it.
Tindall DEBEN TRANSPORT snapped up business and assets belonging to Elite Transport Services for just £75,000, according to documents released by the administrator.
Insolvency practitioners at Leonard Curtis said the offer by the container haulier in April (CM 2 May) was limited to Elite's business in Manchester and Leeds. Because it exceeded the valuation received from an independent agent and there was little prospect of an improved offer being received, the deal was signed off.
The administrator said Elite originally entered into a company voluntary arrangement (CVA) after almost 18 months of significant losses, due to fuel price volatility, reducing volumes and margins.
However, its major customer admitted in February 2013 that it was unable to provide business at historic volumes, which led to Elite being placed into administration.
"Deben Transport expressed an interest in acquiring the business and assets out of administration by way of a pre-packaged sale and submitted an offer of £75,000 for part of the company's business and assets," said the report.
"Deben had capacity in its exist ing operator's licence to continue to use the fleet."
Elite's trading results showed that for the year ended 31 December 2012, it had a turnover of £13.7m but made a pre-tax loss of £577,000.
Employees who did not transfer to Deben are anticipated to be paid in full, with unsecured creditors expected to receive a dividend.
Paul Dawson, MD of Deben Transport, which is also listed as a creditor and estimated to be owed more than £11,000, declined to comment.