Family firm Finedon Bulk Haulage, in Wellingborough, was in trouble after one of the brothers and directors repeatedly ignored notices of tax arrears from HMRC.
By the time fellow director, Karl Donaldson, found out about the problem, HMRC had already escalated matters to such a degree that court proceedings could no longer be avoided.
"When I discovered that [my brother] had been ignoring notices from HMRC, I decided to buy him out of the company and see what could be done to secure our financial future and protect the family firm," he says.
The company's accountants, Cottons Chartered Accountants, alerted Donaldson o the tax arrears: they called in insolvency and recovery firm BRI to plan an escape to address the tax liability and secure the haulier's future.
BRI agreed a Company Voluntary Arrangement (CVA) with HMRC, enabling Finedon Bulk Haulage to pay off its tax liability as a £100,000 lump sum followed by payments of £1,000 per month for five years. "However, we still needed a cash injection in order to fulfil the lump sum aspect of the CVA deal and Cottons introduced us to Praetura Asset Finance via Stratford Corporate Finance to see whether they could help us," says Donaldson.
Praetura visited Finedon's site and valued the company's vehicles, agreeing a sale and HP-back deal, which enabled the haulier to continue trading, and releasing £125,000 from the value of the 44-tonne trucks.
"Praetura Asset Finance took a very can-do approach to helping us find the right financial solution," says Donaldon.
Dan Heald, Praetura's business development manager, adds: "Given the extent of the company's HMRC arrears, it had the option to pre-pack the business, yet Karl's overwhelming desire to continue trading and honour its debts prevailed.
"By applying an asset-based approach to the underwrite and given the established nature of the business, Praetura was able to take a strategic view on its current position and provide the funding required to ensure the family business continued to thrive."