Felixstowe hauliers killed off by finance firm

Failed container hauliers Don Hunter (Transport) and K&M Haulage (UK) went to the wall in April because the firm they were using for invoice discounting demanded repayment of the funds it had paid the company.

The move by Ultimate Finance followed months of deteriorating cash flow at the Felixstowe-based sister firms, caused by rising fuel costs and declining container volumes, culminating in a winding-up petition being presented against Don Hunter (Transport).

Both companies were cross-guarantors for the other with Ultimate, so the winding-up petition affected them both and Ultimate demanded repayment on both loans.

As the statement of administrator's proposals notes: "The company received the demand but was unable to settle it. Accordingly, Ultimate in-structed [its solicitors] to seek to place the company into administration."

Simon and Daniel Plant from SF Plant were appointed as administrators on 29 April.

The administrators tried to sell both companies' assets for a total of £170,000 to K&M Haulage (Ireland) a firm run by Graham Avery, who was also the sole director of Don Hunter (Transport) and K&M Haulage (UK).

However, negotiations for a sale of assets broke down. All employees were made redundant and both firms ceased trading on 30 April.

Administrators put the combined deficiency of both firms at £1.88m; Don Hunter (Transport) owes £977,897 and K&M Haulage (UK) £903,854.

Unsecured creditors are unlikely to receive any dividend, the administrators add.

K&M Haulage (Ireland) has been running vehicles from the Orwell Crossing lorry park near Felixstowe, although a spokesman for the Orwell Crossing says only five vehicles have been using it as an operating centre. The firm's nominated transport manager, Ray Baker, has now left the firm, with no replacement announced.

No one from K&M Haulage (Ireland) was available to comment.