Administrators poring over stricken haulage company Reid Transport's accounts have confirmed that unsecured creditors will not receive a penny. The news will come as a blow to the "substantial" number of companies owed money by the Northern Ireland firm, which was forced to bring in accountants from PricewaterhouseCoopers (PWC) in November last year.
The £500,000 that was raised following an auction of the firm's fleet of lorries will be used to pay preferential creditors, such as banks
and to pay wages of Reid's employees, but this will leave nothing for other creditors. A PWC spokesman could not confirm reports that ferry companies alone are owed £1m. PWC joint administrator Garth Callow says all creditors have been written to explaining the position.
"Based on the amounts realised to date and on the information available, there will be no funds for non-secured, non-preferential creditors. However, the administrators are confident that there will be sufficient funds available to pay preferential creditors relating to arrears of pay."
Reid Transport is also subject to a police investigation into allegations of employing underage staff, as well as foreign nationals without proper documentation. A police spokesman confirms: "We are investigating allegations of criminality at Reid Transport." He adds: "Our inquiries into the matter are continuing. It's a slow process and there are a number of things we have been looking at."
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