Major assets of Ian Aldridge Transport "removed by a director" prior to administration

The administrator handling the affairs of failed Cornish haulier Ian Aldridge Transport has revealed that a director removed assets from the business before it was appointed, potentially breaching insolvency laws.

BDO joint administrators Simon Girling and Christopher Marsden were appointed to the firm on 24 July 2019, following “poor trading conditions and the resultant pressure on working capital facilities".

However, in their latest progress report, the administrators said the majority of Ian Aldridge Transport’s major assets, which included vehicles, trailers, plant and machinery, “were removed by one of the directors” prior to their appointment.

Girling said: “I have attempted to discuss their plans for return of these assets with the director but he has not sought to engage in any meaningful way on this subject.”

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The administrators said that as a result, it had assigned this "antecedent transaction" to specialist insolvency litigation financing firm Manolete, which could fund legal action.

The report added: “Manolete has paid a £10,000 lump sum in initial consideration of this assignment.”

However, the report also said that money due to former employees for arrears of wages, holiday pay and pension arrears, anticipated to be in the region of £40,000 is unlikely to be paid.

It was also unlikely that unsecured creditors, who have so far lodged claims of almost £600,000, will be paid.

A spokesman for Manolete said it was inappropriate to comment on its role at the moment.

Attempts were made to contact Ian Aldridge Transport’s directors.