Chilled and frozen food haulier Bond Transport was sold in a pre-pack deal after it failed to meet the terms of its CVA earlier this year, it has emerged.
The assets and goodwill were sold to connected party Bond Transport NW - which holds an O-licence for six vehicles and six trailers - for £5,000 on 26 February, the day it appointed administrator Leonard Curtis. The companies share common director Martin Bond and all seven staff have been transferred to the new company.
The administrator’s statement of proposals revealed that Bond began experiencing cash flow difficulties during the recession. It made a loss of £46,704 for the year ended 31 October 2011, down from a £41,314 profit the year before.
The haulier also suffered when a vehicle and its load, worth £30,000, was impounded following an accident. The company was cleared of causing the incident, but insurance costs increased as a result.
It also had its time to pay arrangement terminated by HMRC in 2011.
Bond entered into CVA in May 2012, but creditors were notified that the arrangement had failed on 21 February, shortly before the administrator was appointed.
The administrator’s statement of proposals also revealed that the company owed creditors £525,432, including a £335,012 sum owed to HMRC. Other significant creditors included fuel supplier N Booth & Sons, which was owed £28,352; Towergate Insurance, which was owed £1,072 and Cambridgeshire haulier Taylor Marketing (Ely), which was owed £8,606.
MD Martin Bond was unavailable for comment.
