No cash for Barnfather
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• A meeting of angry creditors was told last week that they will not be paid the thousands of pounds owed them by collapsed North-East-based haulier Barnfather.
In an emotional two-hour meeting at Leeds up to 30 creditors' representatives heard that when the Durham-based company crashed into receivership last month it had debts of Z1.9m.
Liquidator Ernst & Young will now launch an investigation into the conduct of the directors; this is routine when a company goes into liquidation.
Creditors were also told industrial conglomerate AAH Holdings paid £500,000 for the assets and goodwill of Barnfather shortly before it went into receivership. The liquidator confirmed this week it will be looking at this transaction because of its timing.
David Matthews and Ian Parkinson who were Barnfather directors, were said to remain very calm despite the fury they faced. Leeds-based solicitor Stephen Kirkbright from Ford & Warren was at the meeting representing 13 creditors owed a total of £90,000. About 400 creditors are owed money by Barnfather.
The directors' report to creditors shows that Barnfather was burdened by interest payments on huge debts and hire-purchase agreements.
It also states Barnfather's profitability was "adversely affected" by taking on new work for Coca-Cola because it gener ated a "very low profit margin" and led to having more vehicles on hire purchase.
AAH Distribution Services has said it will not honour Barnfather's debts.