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Subbies owed thousands by haulage firm
23/11/2007
Northern Ireland solicitors may see an increasing number of sub-contractors coming to them for legal advice after Reid Transport has gone into administration, owing them tens of thousands of pounds.
The Northern Ireland haulage firm's accounts reveal that the company is around £3.3 million in debt, and solicitors may be needed to try to recoup the money that the business owes to around 30 sub-contractors.
David Pattison, senior analyst at Plimsoll Publishing, a business analysis firm said that
accounts filed with Companies House in Belfast in 2005 revealed that Reid Transport had £2.9 million in short-term debt and £400,000 in long-term debt.
Mr Pattison said that interest payments were costing Reid £200,000 annually and "serious changes" would have been needed to change the fate of the firm.
After Reid Transport called in administrators it appears that none of the 200 staff are likely be compensated for redundancy, bar statutory minimum rates, which are only available to employees of over two years' duration.
If solicitors find that they are not in a position to get remuneration for Reid's employees, they may be able to negotiate with administrators to secure sub-contractors' vehicles, which some have already done.
This might not be the last case that solicitors in Northern Ireland have to advise on in the haulage industry, as fuel prices on the increase and a credit crunch is hitting the province.
Contact us for legal advice
The Northern Ireland haulage firm's accounts reveal that the company is around £3.3 million in debt, and solicitors may be needed to try to recoup the money that the business owes to around 30 sub-contractors.
David Pattison, senior analyst at Plimsoll Publishing, a business analysis firm said that
accounts filed with Companies House in Belfast in 2005 revealed that Reid Transport had £2.9 million in short-term debt and £400,000 in long-term debt.
Mr Pattison said that interest payments were costing Reid £200,000 annually and "serious changes" would have been needed to change the fate of the firm.
After Reid Transport called in administrators it appears that none of the 200 staff are likely be compensated for redundancy, bar statutory minimum rates, which are only available to employees of over two years' duration.
If solicitors find that they are not in a position to get remuneration for Reid's employees, they may be able to negotiate with administrators to secure sub-contractors' vehicles, which some have already done.
This might not be the last case that solicitors in Northern Ireland have to advise on in the haulage industry, as fuel prices on the increase and a credit crunch is hitting the province.
Contact us for legal advice
