Clearway collapse leaves creditors with £3.3m shortfall

Nottingham haulier Clearway Distribution collapsed into administration with an estimated £3.3m owing to unsecured creditors, according to the statement of affairs.

The document, released by administrators FRP Advisory, reveals that HMRC, Palletline and RH Group are owed a total of £891,572, £51,038 and £46,730 respectively by the firm, whose assets were sold to B2B logistics in a pre-pack deal last month. (January)  

In an attempt to trade its way out of its financial difficulties, the business entered into a company voluntary arrangement (CVA) with creditors in December 2009, deferring just over £2m of debt.

According to the statement, the firm took up an invoice discounting facility with Bibby Financial Services in April 2010, which provided the working capital required to trade.

In October 2011, Clearway was put up for sale, which generated interest from 31 parties, and during this period, an potential investor was close to taking control of the business.

However, the document says the investor pulled out after the failure of the CVA meant the company would be required to pay all creditors in full.

On 5 January, in a pre-pack led by Clearway director Graham Darnell, new company B2B Logistics offered to buy the vehicles, furniture, equipment, equity in finance agreements, and work in progress of the business for £100,000 plus 25% of the first years profits.