The cost to directors of an administration and/or liquidation is often forgotten, particularly if there are sizable job losses and merger and acquisition activity in its wake.

But The Hub has discovered just how much former Elite Transport Services directors David White and Gary Bethel suffered financially after the container haulage firm collapsed last year.

According to the joint administrators’ final progress report, compiled by Leonard Curtis, White and Bethel had overdrawn loan accounts of £341,971 and £302,210 respectively.

It said that the loans could only be repaid if the two parties ‘realised personal property assets’ and – given the fluctuations in the property market – it could take some time to realise these properties at maximum value to repay the loans.

Business sale details

In the same document it reveals that Deben Transport bought the business and assets of fellow container specialist Elite Transport Services for £75,000, according to its administrator.

However a statement of affairs final progress report, compiled by administrator Leonard Curtis, also reveals that payments of more than £1m were made to Bibby Financial Services, which provided an invoice finance facility, to settle an outstanding debt.

After Deben acquired the business and assets of Elite after it entered administration on 26 April 2013, following a three month period when it traded under terms of a company voluntary arrangement (CVA), a creditor’s voluntary liquidation was approved at a meeting of creditors in July.

During the administration trading period gross sales of £257,979 were achieved, with a post administration sales invoice facility provided by Bibby, which produced a £40,959 surplus for creditors.

Bibby also had a book debt ledger with Elite totalling £1.5m at the time of the administrator's appointment, of which £817,521 was approved for funding.

However during the administration a sum of £1.4m was received which was sufficient to pay Bibby in full and provide a surplus during the administration.

As of 3 December 2013 Elite had an estimated total deficiency, as regards non-preferential creditors, of £4.4m. It includes approximately £2m owed to HMRC in PAYE, National Insurance and VAT, and £555,158 owed to trade and expense creditors.

The administration has now been completed and joint liquidators (at Leonard Curtis) have been appointed after a winding-up resolution was passed.