S P Holding Tractor Hire Limited (04269243): administration
- Status
- Administration ended
- Administration began
- 2016-05-17
- Administrators
- Mark Malone, Gareth Prince
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2001-08-13
- Location
- Birmingham
- Industry
- 77310 Renting and leasing of agricultural machinery and equipment
Why it went into administration
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Property / lease costs
From the administrators' statement
Beverley Fenton became director of the Company on 25" January 2016 after Mr Stephen Holding (the now former director) recerved a custodial sentence after a VOSA investigation The Company was under investigation by VOSA for actions undertaken dunng the period January 2012 to July 2012 Following this investigation, and subsequent court hearing, Mr Holding pleaded guilty to knowingly aiding and abetting drivers to falsify records and paying dnvers for exceeding theirs hours against the Dnvers Working Time Directive This also ted to Mr Holding being placed under a Restraint Order As a direct consequence the overdraft facilites provided by the Company's bankers were withdrawn immediately, impacting on cash flow
The Company was also expenencing cash flow pressure due to a high fixed cost base in respect of liabilities due under finance agreements on the Company's fleet Assets were sold in order to generate revenue in an attempt to reduce the liability base but it became apparent that the company could not generate sufficient income to meet the finance tiabilittes and salanes on a monthly basis
The company was expenencing increasing creditor pressure and the director formed the view that the Company could not meet it’s liabilities as they fell due without a large injection of funds (which was not possible) and that circumstances were unlikely to change in the immediate future Accordingly steps were taken to place the Company into administration
Administrators' statement of proposals (2016-07-18) · Companies House register