News

Administrators at Macfarlane Transport are chasing a major debt - but unsecured creditors are unlikely to receive much. Accountants dealing with Macfarlane Transport's administration have been given a six-month extension so lawyers can try to claw back a £142,000 debt.

KPMG estimates there will be little more than £76,000 available to pay off trade creditors of the Leeds-based haulage company, which went into administration last year with debts of almost £5m (CM 9 February 2006). However,  secured creditors, including the banks, will be repaid in full.

Prior to being appointed to handle the company's administration, KPMG had been called in to handle an accelerated merger and acquisition process. The firm's business and assets were sold to Stephen Cooke's Macfarlane Transport Holdings for £430,000 - but the deal excluded the book debts of Macfarlane Transport.

KPMG says that at the time it was appointed, Macfarlane Transport's books listed 424 creditors - but warns that this list might not be accurate. The latest report says: "All book debt collections, with the exception of a receipt from TWT Logistics for £8,906.50, have been received directly by [Lloyds TSB]".

The report reveals that there is still "one large outstanding debt of £141,848" and KPMG is taking legal action to recover this money. Printing firm Polestar, rumoured to have been in dispute with Macfarlane Transport before it went into administration, denies any connection with this debt  a spokeswoman says it settled its account with Macfarlane Transport "some time ago".

KPMG says it is "currently investigating the position regarding invoices raised by [Macfarlane Transport Holdings] around the time the business was sold, although it is not yet clear whether this will lead to any further realisations." A spokeswoman explains: "It's an ongoing invoice issue. Some things are outstanding and unresolved there's no outcome to report as yet.

"The administrators can continue to collect debts and realise assets until July," she adds. Once the administration process is complete, the company will be liquidated.