Firms that worked for Simpsons Logistics are owed around £837,000 but the company’s administrator believes unsecured creditors will still recover some of their money.
In its latest progress report, RSM Restructuring said it had sold the Chester le Street haulier’s tangible assets for a total of £96,250 since it was appointed in September 2018.
A further £5,000 is still outstanding and relates to the transfer of employees and business to Logistics (Teesside), which occurred as HMRC attempted to wind up Simpsons Logistics prior to its administration.
Simpsons Logistics came under financial pressure after an accounting error was discovered in August 2018, resulting in an additional liability to HMRC of £150,000.
HMRC then presented a winding-up petition against the company for £325,480, but before it could be heard, staff transferred to the new business (Logistics Teesside).
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The latest report also reveals that Lloyds Commercial Finance (LCF) held bad debt insurance for one of Simpsons’ major customers and a claim has now been made against the insurance.
RSM Restructuring said that so far £59,311 had been received into the factoring account to date and further funds were due.
“We anticipate that LCF’s debt will be satisfied by book debt realisations,” it added.
“We intend to move the company into creditors’ voluntary liquidation once the debt collection exercise is complete and we have established the LCF have been paid in full under their fixed charge and there will therefore be a distribution to the unsecured creditors.”
