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• by Charles Young Hauliers owed thousands by a freight forwarder in Wales are demanding to know where all the money has gone—and are warning others not to accept work from the company.
In possibly the worst case of its type to date, Global Transportation of Barry, South Glamorgan, has had judgments awarded against in just six months for £50,000. Global, which is involved mainly in international groupage, is still trading despite the outstanding court judgments awarded to at least 12 hauliers.
Creditors are doubly concerned about their money. because Global factors its invoices with Bibby Invoice Factors. Bibby confirms that all invoices have been paid.
The fact that Global director Michael Mitchell seems personally unaffected by the debts only adds to the creditors' anger. He lives in a large house in a smart area near Cardiff with two expensive cars parked outside (see picture, above right).
Letters to some of the creditors finally
went out this week, informing them that Global wants to enter into a creditors' voluntary agreement (CVA). CM understands that under this agreement creditors are likely to receive about 309,e of their money over an extended period.
In the letter Global managing director Michael Mitchell points to the failure of the ANC parcels franchise which was run by sister company GTL International Freight Forwarders. It is understood that Mitchell was also a director of GTL, which was dissolved last month.
Mitchell writes: "As you are no doubt aware the failure of the ANC Franchise has had a detrimental effect on Global's situation as a whole...[the OVA] will enable the company to re-structure and quickly revert to the position it held prior to the support of the ANC Franchise venture.'' Murray Donaldson, managing director of Kent-based UM Services, owed more than £6,000 by Global, slams the offer as derisory: "It doesn't even cover our costs, plus there's the court costs," he says. "I'm very unhappy."
Nick Daffern, managing director of All Ways Forward, which is owed more than £4,000, says bailiffs acting for him visited one of the addresses for Global Transportation after he secured a County Court Judgment. but all they found was an empty building. The same address appears on Global's company stationery, which was still in use last week. ANC, however, reveals that Global is operating out of ANC's building at Ty Verlon Industrial Estate, Barry, Glamorgan but plans to leave next week.
When Daffern sent bailiffs to this address he says they were hounded off the premises. "I'm more worried about the hauliers who are really struggling," he adds. ''They are the ones who are not going to get paid. It's really tough for them."
No Global directors were available for comment as Mwent to press.
• Another director of Global, Mark 1-1111Jer, who used to run a separate freight business based in Barry, Glamorgan, was made bankrupt in March 1994.