Bodybuilder BE Truck Bodies was sold in a pre-pack administration

BE Truck Bodies was sold in a pre-pack administration last month for £262,000, it has been revealed.

In a note to creditors seen by Commercialmotor.com, administrator Mazars said it was appointed on 7 October – slightly earlier than previously reported - after an initial introduction by the investor in the business.

A review of the debtors’ ledger for Lloyds Commercial Finance followed and revealed there were “issues with the ledger which meant that the ability to collect the entire ledger was questionable”.

This threw the company’s ability to trade into doubt and made it necessary to consider insolvency options. One of these was a Company Voluntary Arrangement, however due to historic liabilities and the need to inject money into the business this option was deemed unviable.

Instead a pre-pack administration, completed on 7 October, was undertaken with the bodybuilder, which operates from the Burnt Tree Industrial Estate on Groveland Road, Tipton, sold to Bebodies.

BE Truck Bodies and Bebodies share common directors in Robert Lawton and David Sims. Lawton was the sole shareholder at BE Truck Bodies, but both men have a shareholding in Bebodies.

The prior financier is not providing finance for the new company, Mazars added in its letter to creditors.

The deal saw £5,000 paid with £257,000 deferred to be received  in 12 monthly instalments of £20,000 starting 30 November 2014, and one payment of £12,000 within a year of completion.

Earlier this month a spokeswoman for Mazars told Commercialmotor.com it was company policy not to comment on individual cases.