22.03.2016

Crane owner barred

Christopher John Etheridge, 50, the owner of UK based D & R Pike Crane Hire has been disqualified from being a director for six years.

The order follows the final bankruptcy and liquidation of the business last year, after trading while insolvent for four years. The UK Insolvency Service investigation found that by October 2011, D & R was unable to pay its liabilities of at least £77,036 as they became due.

HM Revenue & Customs were owed at least £18,036, for VAT and taxes, with the last payment towards VAT being made in January 2010. At least six other creditors were pressing for payments and a County Court judgement for £3,933 was awarded against the company in September 2011. At least 17 cheques, with a combined value of £8,161.17 had bounced, while 21 direct debits or standing orders totalled £6,770.74.

In spite of this Etheridge continued to trade, knowing full well that there was no possibility of the company covering its liabilities, as result these increased from at least £77,000 in October 2011 to an estimated deficiency of £135,733 when liquidated last year, following a final winding up order in January 2015.

The situation was exasperated, when in August 2013 he transferred the company’s only crane - its principle tangible asset to an associated company for less than it was worth and leased it back to D & R.

Etheridge was also a director of Mobile Cranes Ltd which also closed, his co-director and the owner of that company, Emma Jayne Savage also owns Crane Hire South East – previously Savage Crane Hire.

Andrew Stanley of The Insolvency Service, said: There can be no doubt that Mr Etheridge was aware of D & R’s insolvency, nevertheless he chose to ignore this and expose unsuspecting creditors to the risk of continuing to trade for a further four years. Whilst promising suppliers payments, he personally benefitted from the income of D & R and the protection that limited liability afforded him. Limited liability is a privilege that should not be abused and directors should note that should they do so, the Insolvency Service will take appropriate action to remove them from the business community”.