Eurospeed trades to pay Minister launches CM theft pack
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Home Office minister • Creditors owed £300,000 by freight forwarder Eurospeed Spedition of Luton have agreed to allow it to continue trading so it can pay some of its debts.
At a creditors' meeting last month they voted to allow the company to continue trading for up to three years under the supervision of accountant Andrew Conquest of Grant Thornton.
Eurospeed director Richard Goodall is aiming to claw back at least £150,000 within that time so that his 56 creditors, including Stena Sealink which is owed more than £17,000, can be paid back half the money owed. "We were advised that the company could trade through its problems and that is what we are trying to do, rather than shut the door on our credi tors," says Goodall.
Supervising accountant Andrew Conquest believes the financial arrangement, under section 3 of the Insolvency Act 1986, provides the best fit in the case of Eurospeed. The company had been hit by bad debts of £90,000 but appeared otherwise to have good prospects. "Eurospeed was insolvent and the creditors would have received no money if the company had been liquidated as its bankers hold a charge over its few assets," he says.