Palletways is locked into a dispute with the administrators of a collapsed haulage firm after it apparently failed to provide evidence about why it had offset “excessive” charges on debts it owes, writes Chris Tindall.
Inverness-based Caledonian Logistics closed down in November last year due to a challenging trading environment and unexpected liabilities that were only identified after the business was sold to Drac Global in 2022.
Johnston Carmichael LLP said the book debts consisted of two ledgers, a general ledger of which 90% was subject to a confidential invoice discounting facility with Bibby and a Palletways ledger of which 50% was also subject to a facility with Bibby.
The administrator estimated £466,772 remains due to Bibby and it said: “Palletways remains the largest value debtor.
“During the period under review, they continued to apply contra charges to the sum due to the company but failed to provide sufficient evidence to support why all the contra charges were valid.
“It is generally accepted that some contra charges will be valid but at least £450,000 has not been substantiated.
“Legal agents have been instructed to assist with Palletways debt recovery.”
Johnston Carmichael added that Palletways had put forward a settlement offer of £70,000 but this had been rejected due to a lack of supporting evidence.
“It appears likely that Bibby will require to raise legal proceedings given the seemingly excessive charges that are being offset,” the administrator said.
Following Caledonian Logistics’ insolvency, the network selected new operators to take over the distribution from its depots in Inverness and Cumbernauld.
Johnston Carmichael said the Inverness firm had relied on Caledonian’s trading name, logo and telephone numbers on its HGVs as part of a deal agreed before the administrator was appointed.
It said the collapsed haulier’s directors disputed this and the purchaser had not submitted an offer for the name and associated intellectual property rights: “Recent information provided to the administrators suggests it is likely the new operator has already ceased trading and therefore no recoveries are anticipated.”
Unsecured creditors, who are estimated to be owed almost £3m are not expected to receive a dividend.
Palletways said that as it was an ongoing case it was not able to comment on the contra charges.
