AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

Bank should have kept business alive

12th July 1968, Page 31
12th July 1968
Page 31
Page 31, 12th July 1968 — Bank should have kept business alive
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?

Keywords : Business / Finance

• The North Western deputy Licensing Authority, Mr. G. K. Newman, warned the receiver of a Liverpool haulage company that he should not have operated vehicles until the licence position was clarified as he was probably doing so illegally, but that because the business was not now alive, he did not feel the licences could be renewed.

Brennans Road Services Ltd. and its subsidiary company H. R. Morrison Ltd. were called to an inquiry in Liverpool last week under Section 177 of the Road Traffic Act and were applying for the renewal of their A arid 13 licences.

The companies had been placed in their hands on March 6 by Martins Bank, said Mr. F. W. Taylor, a chartered accountant and partner in C. A. Huntingdon and Co. There had been so much confusion with the licences that they had operated only one vehicle on a limited basis—it had only earned 1200 in the past four months— under the Brennan A licence. The other five vehicles which had received GV9s when Ministry examiners had come to carry out :he normal fleet inspection on receipt of icence renewal requests, were un:oadwort by.

Any work which he felt that the vehicles should not do had been passed to a Mr. Cameron. who had shown interest in acquiring the businesses.

Mr. T. Brennan, managing director of the two companies, said the vehicles had been earning a lot of money before March but he could produce no figures or logsheets. He had handed in a contract with the US Air Force and was confident that he could regain this and work for Pet Foods, of Melton Mowbray, and Lyonsmaid. He was now an employee of the receiver but they had only done four loads for Ritsons Haulage since March.

He had owed about £58,000 and had repaid £25.000 to the finance companies. If the businesses were sold the final £5,000 owed to the bank could be cleared.

Mr. Taylor said he had been placed in an impossible position. He had deliberately refrained from operating the licences because of the question of illegality. Mr. Newman said if the bank wanted to go into the haulage business and retain the benefit from the licences, it should have pumped money into the business to keep it alive. However, he agreed to adjourn everything for the position to be clarified.

Tags

Organisations: US Air Force
Locations: Liverpool

comments powered by Disqus