BH Freight successor’s O-licence revoked
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The collapsed haulier, along with its pre-pack successor Select International, had its O-licence revoked by the DTC
By Roger Brown
COLLAPSED HAULIER BH Freight and its pre-pack successor Select International Transport have had their O-licences revoked by a Deputy Trafic Commissioner (DTC).
In a written decision following a March public inquiry (PI) in Bristol, Western Trafic Area DTC Tim Hayden (pictured) also disqualiied Moreton Valence-based BH, Select and their director Ronald Hogben from holding or obtaining an O-licence for a period of 12 months from 1 September.
Hogben told the PI he had set up BH Freight in the 1970s.
However, in March 2009, the irm lost a major contract with Lafarge, which accounted for 70% of its business.
Later that year, BH invested in 17 trucks on a contract hire basis to service a new agreement with insulation irm Knauf, but according to Hogben this had “not proved to be as proitable as expected” .
Hogben had secured an O-licence for Select after telling a PI on 6 May 2010 he needed it for new business from the Pallet-Track network, and adding that BH was “still a proitable and successful business” .
However, on 11 May 2010, BH was put into administration with a deicit of £340,000.
In a pre-pack arrangement, Select then bought the goodwill, plant and machinery, premises, ofice furniture, computer equipment and vehicles of BH from the administrators for £46,000. Hogben told the DTC that he wanted to continue the business so he could pay off unsecured creditors.
In his decision, Hayden said he was concerned Hogben had known about the precarious position BH was in when he applied for the Select licence.
“In order to trade the proitable elements of BH’s business it was critical to Mr Hogben that he should have a new operator’s licence,” the DTC added.
“I view Mr Hogben’s evidence that BH was proitable and successful not just as a lack of frankness but as a deliberate misrepresentation.
“Had the real position been put forward then clearly his application would have been at risk.” The TC said he also looked at the possibility Select had been a phoenix irm. He added: “In this case, Mr Hogben was able to continue to trade with Select using contracts, staff and vehicles, which had been doing exactly the same work for BH prior to its administration.
“While it’s commendable that some unsecured creditors are having their debts paid, it appears that the majority of those are those on whom Mr Hogben depends for services in relation to Select. Overall, this pre-packed arrangement represents a cherry pick by Mr Hogben of a viable contract, while leaving the majority of BH’s debt to be met by the tax payer or by the individual creditors.”