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.
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