Bank gets paid but creditors only receive 10p in the pound

KPMG say that companies and sole traders owed cash by the sugar beat haulier M and J Haulage of Lincoln will only get 10p in the pound according to Chris Tindall writing in Motor Transport on November 7.

He said: “The Lincolnshire firm has now entered liquidation and in a report to creditors liquidator Mark Orton at KPMG said the timing and amount of any dividend will depend on further realisations and associated costs of winding the business up. KPMG was appointed to the firm in October 2017 following an announcement by British Sugar that there would be a significant reduction in contract volumes from April 2018. The move compounded M and J’s existing financial problems. Secured creditor Natwest has now been repaid in full and preferential creditors have received a dividend of 100p in the pound.”

The news has angered ICSM Credit’s Ian Carrotte who said it was typical that the least able in business to fend off bad debts would pay the price. He said: “While the bank gets their cash smaller suppliers and traders will effectively get very little. Those in the business who are members of ICSM Credit have reported problems with the haulier and we’ve done our best to keep others informed. In these situations the best policy is to keep a tight credit control and not to allow extended late payment terms.”

For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the 'About Us' page of the website www.icsmcredit.com or send at email to Ian.carrotte@icsmcredit.com