Debts relating to road traffic accidents racked up by former drivers of a Birmingham contract haulier have been written off after it was concluded it would not be cost effective to track them down.
Contact Transport entered administration in April 2017 and soon afterwards, RSM Restructuring told its creditors that the company had secured court orders against employees and subcontractors who were found to be at fault in road traffic accidents.
The debts totalled almost £40,000.
Agents were instructed by RSM to recover the money and by April 2019 the amount received was £2,695.89.
But RSM has now said it had decided not to pursue the debts any further.
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In its latest report, insolvency practitioners at RSM said: “Realisations have been limited due to the lack of response from the employees/sub-contractors and also the insufficient information in the company’s books and records.
“In addition, due to the age of the debts, a large proportion of the debtors have moved away and it would not be cost effective to trace them.
“Agents were instructed in a prior period to assist with collection of those debts, however it was agreed due to the factors mentioned above that it would not be cost effective to pursue any further and the balance of these small debts were written off.”
It added: “One of the small debtors continues to make small intermittent payments to reduce the balance owed and £20 has been received during the period.”
Unsecured creditors of Contact Transport are not anticipated to receive a dividend.
