03.07.2009

Allan Access Hire?

Allan Access Hire, the company that took over from Allan Access when it went into administration last year has now appointed an administrator itself.

The situation was slightly confused this mornning as an administrator was appointed by the company earlier this week, but according to the court, a winding up petition from the UK Inland Revenue - HMRC -was supposedly heard first and approved.

In essence this would mean that the appointment of the administrator was too late to save the company and it has now technically been ‘wound up’. However, the company and its assets are clearly still in place and nothing is simple when it comes to UK insolvency legislation, so the situation is likely to change.

Owner Phil Allan has confirmed that an administrator has been appointed and that as far as he is concerned the company is in administration, a situation forced on it by an unwillingness on the part of the HMRC to work out a practical re-payment plan.

A statement from Allan, explaining the situation from his perspective is reporoduced in full below.

Statement

"The directors of Allan Access Hire Ltd have today instructed Liquidity Ltd their invoice financing partner to appoint an administrator to the affairs of the business."

"The decision has been forced upon them by recent actions of HMRC who had issued a winding up petition on the Company taking effect on 1st July 2009. Despite the best efforts of the directors HMRC would not entertain a company voluntary arrangement to address the petition for monies due to be paid over a period, together with all of the other creditors who will now suffer as a result of this action and non co-operation."

"For several weeks Allan Access Hire Ltd were in advanced negotiations with a major UK bank to provide new working capital facilities via the new Government Initiative Loan Guarantee Scheme. This scheme was launched this year specifically to help companies where additional working capital was required to grow the business and where traditional bank funding had effectively ceased due to the enormous pressures on banks during the current economic recession."

"In principle a loan was provisionally agreed provided that HMRC accepted in writing payment of all outstanding liabilities over a reasonable period. Initially HMRC agreed to this but delays by the bank in finally passing off the loan, partly due to their own cautiousness and partly due to the unfamiliarity of the new Government scheme, has led to the whole deal being frustrated and HMRC taking a different stance than originally discussed, and deciding to petition to have the company wound up."

"Allan Access Hire Ltd only started trading last October when it had to purchase the business assets from SFP (Simon Franklin Plant) the administrators of Allan Access Ltd. Close Invoice Finance chose to appoint the administrator (SFP) rather than allow Allan Access Ltd to move to another factoring company."

"Close Invoice Finance have a history of these unscrupulous activities to bring about a mutually lucrative fee earning arrangement. (SFP’s fees alone were approximately £200k! ) When the Directors of Allan Access Ltd were held to ransom, they had no choice but to negotiate to purchase their family business back at a price that had expected to also have some funds available for creditors."

"When purchasing the business back very tough conditions were imposed by SFP on Allan Access Hire Ltd. These conditions together with the one of the most dramatic economic downturns in the industry for many years and restricted bank facilities have all contributed to the adverse financial position of Allan Access Hire Ltd., and hardly giving the company chance to get back on its feet."

"The directors of the business despite having taken every step possible to protect and save the company, and jobs by putting in their own personal monies will also be very severely hit by these actions caused by the bureaucratic and non commercial decision of HMRC in not agreeing to a viable CVA."

"The directors of Allan Access Hire Ltd believe that with the appointment of an administrator to oversee the current situation a quick solution can be sought to address the business in the future saving jobs and an on going business operation."