Two sides of the CVA
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In November 2011 we interviewed Jason Homer of Andover Transport, a likeable chap and enthusiastic about the industry. He told us: -If I make irresponsible decisions and crash the company, there'll be 32 people out of work.- While it would be unfair to pass judgement on the decision-making process in the past 16 months at Andover Transport, it was a shock to learn the haulier is in administration (page 6).
It is yet another story from administration season — January to March always sees operators fold — an annual event that gives CM no pleasure reporting on. However this year there is a new trend in town, the company voluntary arrangement (CVA). Last week, the Road Haulage Association (RHA) took the stance that members using financial devices such as CVAs would be barred. Tellingly, the announcement came as Elite Transport Services entered into a CVA.
John Williams, the MD at container haulier Maritime Transport, got in touch this week (page 6). He has taken exception to cases where competitors -are able to write off debt and continue to operate- — perhaps one of the most consistent and emotive of subjects for readers in recent months. Of course, this is just one side of the argument. Another reader told us about his business that traded through a CVA and paid off its restructured debt in two years, not the five prescribed. He said: -While it may be easy for CM or the RHA to pour scorn on operators that opt fora CVA, in my experience these decisions are not taken lightly.- This debate will run and run, and we'll be taking a look — warts and all — at CVAs in future issues. It is incendiary stuff, but we hope it will inform your view regarding their use.
Christopher Walton