News

An operator who avoided bankruptcy by entering an individual voluntary arrangement (IVA) may have action taken against his licence because he failed to disclose the IVA at a previous hearing. Consideration of action against the licence held by Market Drayton-based Garry Edwards has been adjourned so his supervisor in the IVA can give evidence. Edwards claimed the supervisor had told him the IVA would not affect his O-licence because it was not a bankruptcy or liquidation.

Edwards, who  trades as Hodnet Transport, had been called before West Midland Deputy Traffic Commissioner Lester Maddrell at a Birmingham disciplinary inquiry. He holds a licence authorising 14 vehicles. The DTC said the issues were that Edwards had entered an IVA to avoid being made bankrupt in January. This cast doubt on whether he could meet the financial requirement of 50,400 for the number of vehicles authorised. There was also the matter of the non-disclosure of that IVA at a public inquiry at the beginning of March, which called Edwards' repute into question. In reply to the DTC, Edwards said he had run into financial difficulties in the second half of last year. An application to increase the licence from 14 to 20 vehicles had not been an attempt to expand the business to try to solve those difficulties - customers were "screaming" for more vehicles.

He agreed that he had not mentioned the IVA at the previous hearing, saying he thought the Traffic Area had been notified by the supervisor.  
Asked how he could acquire 50,400 for 14 vehicles, or 70,800 for 20 vehicles, at the beginning of March, Edwards said he had borrowed against his house. He agreed the loan had not come through at the time and had still not come through. Adjourning the proceedings, the DTC said Edwards should have been frank about his financial situation in March. It must have been clear during that hearing that he was unaware of the IVA and needed to hear from the supervisor.