Construction haulier's plant held in row over unpaid bills
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CONSTRUCTION HAULIER Weldon Plant had its vehicles held as a lien in a bid to force payment of an unpaid debt, according to its administrators report, just filed at Companies House.
Grant Thornton Ian Carr and David Bennett, appointed in October (CM 7 October), say the Corby company operated an extensive range of HGVs and excavating plant, which was moved to a secure site when it closed down.
A rent was agreed with site owner Paragon Automotive, but before the plant could be sold, Paragon exercised a lien in respect of a E17,200 debt owed to its associate company Greatline Developments.
The receivers' report says: "Conflicting legal advice from both sides was received, so to avoid incurring unnecessary costs and to ensure the necessary steps could be taken to prepare the equipment for sale in a timely fashion, we agreed a commercial settlement with Paragon of E7,200 plus VAT to release the plant from this potential lien."
Carr and Bennett say Weldon Plant suffered because of the recession and a downturn in the housing and construction market. In the 12 months to February 2010 it made a pre-tax loss of £267,000 compared to a £74.000 profit in the year to February 2008. During this two-year period, turnover fell by £8.4m to £14.8m.
Unsecured creditors are estimated to be owed £5.2m, but it is not known if they will receive a dividend.
However, it is estimated that preferential creditors will be repaid in full.
Greatline Developments director Mark Day did not respond as CM went to press.