HMRC has forced through a revision to the original deal put forward for creditors of Premier Logistics (UK), which entered a Company Voluntary Agreement (CVA) earlier this week, MT can reveal.

Following a meeting on 30 July where the revisions were put to creditors of the business, the tax man, which was owed £500,814 as of an estimated statement of affairs dated the 10 July, has increased the amount to be paid, albeit over a longer term.

The struggling haulier had been seeking to restructure its finances via a CVA in the face of a £5.7m shortfall to all creditors.

The original proposal would have seen unsecured creditors receive 32.4p for every the pound they are owed. It would have run for 35 months.

However, HMRC has secured a five-year CVA term that will see the equivalent of 50p in the pound paid.

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This means that where £1.1m would have been paid to unsecured creditors over a three year period, a total of £2m over five years will now be paid.

According to a report on the CVA seen by MT, “the modifications proposed considerably improve the overall projected return to unsecured creditors with no impact on the return that had been envisaged during the first three years of the CVA”.

The remodelled distribution to unsecured creditors is 12x £20,000; 12 x £30,000; and 36 x £40,000.

Supervision

In a statement, FRP Advisory said: "Raj Mittal and Steve Stokes, partners at specialist business advisory firm FRP Advisory, have been appointed supervisors to oversee the CVA of Premier Logistics (UK).

"Following a meeting of creditors on 30th July, the national distribution and warehousing business entered a CVA as a result of under performance of certain subsidiaries and depots and resulting cash flow pressure."

Mittal said: “The CVA will enable the business to complete its planned restructuring, including closure of under-performing depots, and therefore help secure the future viability of the business and return it to profitability.”

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