Barnfather is under scrutiny
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by Karen Miles • Legal action is being considered against Barnfather Ltd's directors as the liquidator nears the end of investigations into the failed north-east haulier.
Under consideration is possible action for unlawful trading for a period before the company's assets were sold in October to AAH Holdings. Shortly afterwards Barnfather went into receivership for book debts and then into liquidation leaving around 400 creditors owed £1.9 million.
If the directors, including Ian Matthews and David Parkinson, were found guilty they could be liable for the hundreds of thousands of pounds of debt run up when the company was allegedly trading while insolvent.
A decision on whether to proceed is expected in two months.
Parkinson, now a director for Felixstowe-based Network Freight—formerly called Barnfather Freight—denies knowledge of the allegations. Matthews refuses to comment.
The liquidator, Ernst & Young, is also understood to be considering whether the £500,000 paid by AAH for assets—including around am worth of business a year, three sites and about 80 trucks—was knowingly undervalued.
If a court rules the sale was undervalued it could be set aside. Investigations are understood to have shown that even if the directors had received the best offer available from AAH there was no prospect of solving the insolvency crisis. If the allegations are proved the directors could be liable for the £120,000 of debt owed to owner-drivers for work carried out for the month from mid-September.