McCarthy Haulage files for CVA

Wrexham-based McCarthy Haulage has filed a proposal to enter into a Company Voluntary Agreement (CVA).

The CVA (filed on 8 September) has so far been accepted by the majority of McCarthy’s creditors, according to the recovery firm handling the deal, Turnaround Solutions.

Phil Wildbur, head of Turnaround, explains the Welsh haulage firm has been hit badly by the poor performance of one of its contracts during the past 12 months, as well as a "less than supportive bank", which has led to losses and creditor arrears.

As part of the CVA process, the business has now rebanked and secured long-term funding agreements.

Wildbur says the CVA will give the haulier time to recover, exit poor contracts and increase efficiencies.

He adds: "All customers have been contacted and are supportive and there should be no effect on the core workforce."

McCarthy Haulage holds four O-licences, with authorisation for 90 trucks and 114 trailers.

The company’s last set of accounts was filed on 4 October 2010, covering the period until 31 December 2009.

The haulage firm’s pallet business, McCarthy Distribution and Warehousing, which is a Pallet-Track member, is unaffected by the CVA of McCarthy Haulage and is predicting strong growth in 2012.