AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

Operator hits out at HSBC over overdraft decision

12th February 2009
Page 10
Page 10, 12th February 2009 — Operator hits out at HSBC over overdraft decision
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

By Chris Tindall A DERBY OPERATOR has branded banks' promises to free up credit and help firms following an unprecedented government cash injection "all smoke and mirrors': John Wood is vowing to fight HSBC "every inch of the way" after his company Foxtrot Couriers was refused a £10,000 overdraft extension while it awaited £90,000 owed to it from customers.

Administrators from Dains LLP were appointed on 26 January and the business has since been sold to Derby Express Couriers, where it will trade as Foxtrot Sameday Logistics. Wood. who is a vice chairman of the Road Haulage Association's regional council, says: -Last year [HSBC] contacted me to reduce the overdraft and it turned it into a loan. I thought that's the wrong thing to do to im prove cash flow, but I had no choice; it wouldn't extend my overdraft. I have challenged the way it formed this loan."

Wood says creditors of the company won't receive a penny but adds that customers can work with the new firm.

Derby Express Couriers MD Nick Taylor says Wood did everything by the book. -Primarily it was a good business," he says. "It had a good reputation and a nice customer base. It's slotted in nicely with our vehicles and helped us a little bit."

Taylor adds that although 11 employees lost their jobs, he hopes to build staff numbers up again over time.

HSBC did not respond as CM went to press.

FO S THE LATEST NEWS VISIT: WWW,OadtranSPOrt.ceni


comments powered by Disqus