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Road Haulage Association takes action on pre-packs and CVAs

  • 11 February 2013
  • By Christopher Walton

Any business that enters into an agreement with its creditors or conducts a pre-pack administration will have its Road Haulage Association (RHA) membership cancelled with immediate effect.

The RHA has cited concern in the industry about practices such as company voluntary arrangements (CVAs), pre-packs and receiverships. It is also worried about the occasions where its members are unsecured creditors in such cases.

The RHA is going to write to senior traffic commissioner (TC) Beverley Bell urging TCs to investigate the finances of a company that enters into any of the above arrangements “to establish at what point the operator failed to meet its financial standing requirements, as it must do when it becomes insolvent”.

It wants TCs to take a “more robust stance” on hauliers that fail to notify them promptly of CVAs, administrations or receiverships.

No flexibility

RHA chief executive Geoff Dunning (above) said: “Our Articles of Association are very clear, setting out the various circumstances in which either an individual, partnership or company must have their membership cancelled. Our board has recently determined that there is no flexibility in this matter.

“Survival is difficult enough in this economic climate, without having to compete with firms that write off significant debt.”

In a recent pre-pack case, Steve Biddle, director of RHA northern region, wrote to Sims Worldwide director Kenneth Sims and asked him to remove the RHA logo from its website. “They know clearly that they can’t use conditions of carriage,” he said.

Any haulier struck off RHA’s membership can re-apply, but its trading history and list of unsecured creditors will be considered before a decision is made.

It comes after creditors of Southampton’s Elite Transport Services approved a CVA at the firm.

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Article source: http://www.commercialmotor.com:80/latest-news/road-haulage-association-takes-action-on-pre-packs-and-cvas