The administrators of Melton Mowbray-base haulier S&J European Haulage, which went under in March last year, have revealed that there are insufficient funds to fully reimburse the company’s secured creditors, whilst other creditors, will receive no payments at all.
A progress report posted on Companies House last week, by administrators from Alvarez & Marsal, reveals that when S&J European Haulage called in the administrators in March last year, it owed secured creditor Lloyds Bank Commercial Finance around £1.6m, of which £84,583 related to a Coronavirus Business Interruption Loan (CBILS), with a further £57,087 related to an overdraft, and around £1.5m under a confidential invoice discounting (CID) facility.
However, despite raising over £1.1m from trade debtors and from the sale of assets, the report reveals that the funds raised are well short of the amounts needed to reimburse Lloyds and secondary preferential creditor HMRC, which is owed almost £500,000.
Unsecured creditors, which include employees, will also receive nothing, the report confirmed.
The ordinary preferential claims totalled £414, 476. This does not include pension arrears, which amounted to £42,000.
S&J European Haulage called in the administrators in March last year, after collapsing under rising fuel and labour costs and the loss of a million-pound contract.
The company, which traded out of a Melton Mowbray operating centre, had an operating licence for 45 HGVs and 80 trailers and over 80 employees.
A summary of S&J European’s financial performance provided by Alvarez & Marsal, shortly after the company’s demise, showed that in the year ending 30 November 2023, turnover fell to £10.5m from £12.7m in the previous year, with the company making a £408,000 loss.
S&J European tried to shore up the business through stakeholder investment and an accelerated merger and acquisition process.
However both strategies were unsuccesful and the haulier was placed into administration on 26 March, with 82 employees made redundant.
