Fri, 02 Nov 2012 | ADMINISTRATION
A haulage company has been pushed into administration by its HM Revenue & Customs (HMRC) debts.
Young European Ltd, based in Wiltshire, appointed Costas Morfakis of Axiom Recovery on 14 August to handle the administration after the company's secured creditor, Bibby Factors Manchester Ltd, called in administrators.
Later in August, Dennis's Removals Ltd, a connected company that operated alongside Young European for a number of years, bought the company out of administration for £55,000.
It has now been revealed that tax debts were behind the administration in the first place. Trading conditions led Young European to fall into arrears with HMRC, resulting in the addition of penalties and interest of around £40,000 on top of the original debt.
No agreement could be reached between the tax body and the business, leaving HMRC to petition to wind the company up and Bibby to enforce its security and appoint the administrator.
The administrator said it is "considered likely that there will be a distribution to unsecured creditors" but added he is "unable to advise as to the quantum or timing of such a distribution at this stage".
So far Bibby has collected £122,071 of what it is owed but it is expecting to be paid in full.
A leading engineering firm focusing on electric power steering solutions and bespoke wiring harnesses serving various industries. It operates as two entities both reputable for maintaining high standards and offering bespoke solutions for clients. In...
Market-leading fruit and vegetable supplier distributing fresh produce and complementary goods both wholesale and D2C. The companys uncompromising drive for customer satisfaction has built strong relationships with across an enviable client base incl...
Turnkey construction services provider completing a range of projects with expertise across maintenance general refurbishment new build and conservation including work on listed buildings. The company provides full-service construction works utilisin...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.