Creditors of Palletline Logistics (Midlands) have voted in favour of the company voluntary arrangement (CVA) applied for by the haulier last month.
MD Bob Russett (pictured) told Motortransport.co.uk he had mixed feelings after approval of the CVA this week (16 May): relief that it had passed ensuring a future for the business, but disappointment that the action had been necessary.
“We are trading profitability and intend to keep doing so,” says Russett.
The Birmingham haulier’s cashflow problems stemmed from errors by Palletline Logistics (Midlands) in reporting its operating figures to its lender.
Russett says trade creditors will be paid quickly, while repaying the £340,000-plus owed to HMRC will take longer. The CVA, handled by RSM Tenon Recovery, will see the haulier make repayments over a five-year period.
The business remains a Palletline Plc pallet-network member. However, Palletline Logistics (Midlands) is a separate legal entity under separate ownership and not a division of Palletline Plc.
