Pre pack pain Nobody likes to see a haulier go
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under, even when it's a rival. But sympathy for company closures is often lacking when they involve a pre-pack administration or CVA Words: rat Fldydll In a pre-pack administration, the sale of a business and its assets is usually arranged before an administrator is even appointed. Pre-packs are popular because they save time and money and can, in theory, rescue jobs by minimising the disruption to a business.
But they can arouse suspicion when, as is often the case, the pre-pack buyers turn out to be the existing owners — but under a different company name.
Less controversial Company Voluntary Arrangements (CVAs), meanwhile, are a slightly less controversial arrangement where an insolvent company can continue trading once it has agreed to pay its creditors what it owes over a fixed time period.
A recent survey of hauliers found many feel traffic commissioners (TCs) should crack down on firms that have been through either process, with tougher restrictions on 0-licences granted to firms that have already failed financially. But what do CM's operator panel members think? •