Non-trading Maxwell Transport faces creditors

By: Paul Howell


Over 25 financiers and other non-secured creditors have first meeting with administrators.

Non-trading Maxwell Transport faces creditors
Maxwell Transport and MTG Logistics went into administration on March 2.

 

Administrators for Maxwell Transport and MTG Logistics have ceased all trading from the two linked entities.

Pitcher Partners’ Gess Rambaldi and Andrew Yeo held their first meeting with creditors of both companies on March 13.

Rambaldi says with both businesses closed, the focus of administrators has been "securing, protecting and realising" their assets.

These include around 40 prime movers and around 70 trainers, the majority of which are the subject of secured creditor arrangements with around 25 different financing entities.

He says there are also non-secured creditors in the picture, but it is too early to tell what sort of return, if any, they will have access to.

A date for a second creditors’ meeting has not yet been set. It will take place in around a month, but may be delayed slightly because of the Easter holiday period.

At that meeting, creditors will most likely move what is left of the business into a formal liquidation phase, or accept a deed of company arrangement – in which a third party elects to buy into the remaining businesses and give creditors prospects of a greater return.

Rambaldi says no such offer has been made yet.

Maxwell Transport and MTG Logistics went into administration on March 2. A third company, Optimal Corporate Services, was placed into liquidation at the same time.

Rambaldi says the group was unusual in its "evolution" from a single entity into three businesses handling: the employment (Optimal Corporate Services); incoming finances (MTG Logistics); and the actual provision of freight services (Maxwell Transport) separately.

However, there was no indication that that unique structure contributed to the group’s business difficulties.

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