Taxi Driver Online

In todays Lincolnshire Echo

NOTICE

In the isolvency Act 1986

RE: HANDSOME CABS (LINCOLN) LIMITED
Notice is hereby given persuant to section 98 of the insolvency act 1986, etc, etc......
dated 22nd June 2007

I know a couple or three chaps who work for this firm, who knew nothing of this. They are still trading, is that legal?

Likely a lot of owner drivers are owed account money. Can they still do account work, take bookings, continue in business? Just out of curiosity, you understand. No axe to grind.

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Former taxi driver

I guess so, as the assets of the firm are nil if they don't work.

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IDFIMH

There are several different procedures.

Under administration the business will be run with a view to the business continuing as a going concern.

At the other end of the scale, liquidation will wind the business up and attempt to get the best deal for creditors.

In between is receivership, and again the aim is to run the business so as to get the best deal for creditors - for example, if a taxi office is closed down then since the phones won't be answered any value in the phone number will quickly disappear, so the insovency practitioner will try to keep the office running thus getting the best value from the assets to pay creditors.

The aim is always to continue to run the business as a going concern or if that's not possible sell the assets for the best price possible - that may well involve keeping elements of the business running as normally as possible.

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Taxi Driver Online
www.taxi-driver.co.uk

Big article in today's Lincolnshire Echo.

Will publish link when it appears on their website.

Handsome Cabs (Lincoln) Ltd is no more.

Handsome Cabs (Lincoln) 2007 Ltd was incorporated on June 14th.

Same directors.

Last published accounts. Turnover £1,295, 154. profit £13,185

Included in "costs" £ 659,330 driver leasing. WTF is driver leasing?

They pay drivers to work for them?

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Former taxi driver

I haven't got a clue who this company is but I doubt their demise is a laffing matter.

Regards

JD

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Copyright notice © The contents of this post are copyright of JD and are not to be reproduced outside of TDO without written permission.

JD, I am not "laffing"

The company is still operating, and will apparently continue to operate.

I am amused, nay, bemused at the nature of the demise and seamless ressurection of this business with the same names at the helm. We will see what their creditors have to say about it, whoever they may be?

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Former taxi driver

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Former taxi driver

This is just a blatent way that some companies use to get rid of debt. They wind up the existing business and buy back the assets at a knock down price. Start a new business with a new name and you have a business with no debts and just carry on as before. Clearly there will be losers in this and I suspect that this will probably be owner drivers who are owed account money because if the old business has ceased trading they can't be paid.
A similar sort of thing appears to be happening at Leeds United. Ken Bates put the club into administration and intends to buy it back for a knock down price.

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Grandad,

Hasn't worked for Leeds and Bates, well not yet anyway.

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IDFIMH