CVAs jeopardise industry, says Maritime director
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dy Christopher Walton THE BOSS of the largest container haulier in the UK said it is "incredible" that firms are still being allowed to legally write-off debts and continue to operate.
John Williams (right), the MID at Maritime Transport, welcomed the Road Haulage Association's stance, as revealed by CM last week, that operators who enter financial processes, such as company voluntary arrangements (CVAs) and pre-pack administrations, should lose their membership of the association.
He said: "I find it incredible that failed operators are allowed to re-emerge through pre-pack administration and CVAs.
"I am sure there are many MDs of well-run, profitable UK transport businesses who also share my view and take exception to competitors that are simply able to write off debt and continue to operate," he said.
"It denies other companies the opportunity to gain additional business. The government should note that profitable companies pay tax; unprofitable ones don't.
"These arrangements jeopardise the prospects for well-run businesses and they offer no encouragement at all for successful operators to invest in our industry," he continued.
Williams' comments come following a spate of CVAs and pre-packs in the sector, including the likes of Clearway Distribution B2B Logistics, Palletline Logistics (Midlands) and Steve Prince Transport.
Meanwhile, creditors at Elite Transport Services have voted overwhelmingly in favour of a CVA at the container haulier.
It emerged last week that the North West haulier had filed a proposal for a CVA with Manchester County Court on 23 January. A creditors' meeting took place on Friday 8 February.
A spokesman for the company said that the application for a CVA had been upheld by 99% of all creditors and that it was "looking forward to getting on with business".
Under the terms of the deal, creditors will receive 37 pence in the pound over a five-year term. It is understood that the largest creditor is HMRC, which is owed approximately £1.5m.