Licence turned down amid fears of a phoenix company
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By Roger Brown
CROSSWAYS TRANSPORT (International), successor to liquidated company Crossways Transport, has had its O-licence application rejected after Deputy Trafic Commissioner (DTC) Tim Hayden expressed concern that it was a phoenix operation.
At a public inquiry in Bristol, Hayden was told that Hook-based textile and agricultural transport haulier Crossways Transport, which had authorisation for eight vehicles and 11 trailers, went into voluntary liquidation in May this year with overall debts of about £200,000.
Crossways Transport (International), with Shane Badman – the partner of Crossways Transport sole director Jacqueline Carter – proposed as a director, had its application for an interim O-licence turned down in May.
However, following the liquida
tion of Crossways Transport, Crossways Transport (International) paid £30,000 to the liquidators and took over the premises, vehicles and business.
It was later discovered that from May to August 2011, Crossways Transport (International) had deliberately operated a leet of ive vehicles without authority, serving the previous customers of Crossways Transport and using Crossways Transport discs.
Carter’s brother, Geoffrey Cox, was also named as a director of Crossways Transport (International).
The DTC said Carter, who told the inquiry she did not realise she had to return the licence and discs of the old company following its liquidation, had lost her repute as a transport manager.
He added: “Once Crossways Transport was liquidated, Crossways Transport (International) took over its premises, its vehicles and its customer base. Essentially, this was the same business, but operating free of the substantial debts Crossways Transport had been unable to discharge.
“The mechanism for its continuing to trade an insolvent business without that debt has been for other connected parties to create and trade a phoenix company.”