DELTA TAXIS should not be allowed to escape paying its debts just because it is now operating under a different company name, a shareholder has said.
David Willcocks (pictured) says he invested £17,000 buying into the company in 2006. He left last year, saying he was owed five months’ wages, since repaid on condition he signed a confidentiality agreement.
The 29-year-old was due to take Delta to the Petty Debts Court on 1 April in an effort to recover £5,750 that he claims to have additionally lent to the company to meet its rent arrears.
He now fears he will not see a penny after the company’s managing director said he had sold its assets to another firm.
Delta was this week put into liquidation and former MD Mike Newsom did not contest the order.
However, immediately after the hearing he announced that the company would continue trading after a firm called Ashdon Lyme apparently bought its assets a few days earlier.
It is unclear what impact that could have on Delta’s debts, believed to total more than £120,000, including £50,000 in unpaid tax and social security contributions.
But Mr Willcocks was adamant that the company should not be allowed simply to walk away and has set up a Facebook campaign group ‘Pay up Delta Taxis’, with 38 members as of this morning.
‘He [Mr Newsom] has undermined the courts as far as I’m concerned,’ said the Island Taxis driver. I do not think he should be allowed to get away with not paying the money he owes to people and to tax and Social Security. He should not do that.’
Mr Newsom said yesterday that he would like to speak to Mr Willcocks before commenting further.
The Royal Court appointed Grant Thornton accountant Jamie Toynton as liquidator but he was not available for comment yesterday.
An Environment Department spokesman yesterday said it would be seeking legal advice regarding the Delta Taxis case.
‘The department will be liaising with the liquidator and the company principals as well as its own legal advisers in order to ascertain the status of Delta’s trading operations,’ he said.
‘The department will of course, as part of that process, apply the provisions of the Public Service Vehicle Legislation including any relevant licensing and enforcement provisions.’
A Treasury and Resources spokesman said it could not comment because Delta was in the hands of the court-appointed liquidator.
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Article posted on 18th March, 2010 - 2.30pm
6 Article Comments
David
When you tried to sell me your shares a year ago, I told you they were worthless and you said someone had already offered you close to the amount you were asking …. maybe you should have taken their cash eh!!
Simon
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To be honest it beggars belief that the States allowed these people to sell their assets prior to paying their debts???????????
Surely they should only be able to sell any assets to clear accrued debts and then, and only then sell the remainder??
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Serious questions need to be answered here.
Was Delta Taxis trading whilst insolvent in its last few weeks (it certainly looks that way and the Deputy Bailiff very clearly warned Mr Newsom about the personal implications of doing so).
I hope that this is properly investigated, and I’m sure it will be, by the liquidator.
In the meantime let’s hope that islanders do the right thing and completely “blackball” the new business as it looks like the owner is simply sticking up two fingers to all of his creditors. On a small island he cannot be allowed to get away with such disgraceful behaviour while creditors apparently remain unpaid.
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I am very concerned at today’s headline and story.
Many of the 20+ drivers working for Delta (now Ashdon Lyme UK Ltd) or using its link are totally dependant upon their income from driving.
To begin any kind of embargo means they will lose their wages.
Many are owed money by Delta, so to cut their wages is a double whammy.
For anyone foolish enough to invest in the company there are perfectly legal ways to seek recompense. For others owed through unpaid wages and bills, we must hope that the liquidator will be successful in recouping cash. I doubt that the taxpayer has lost anything because there cannot have been any profits!
But please keep these ladies and gentlemen employed by ignoring a call for a boycott.
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Roy Bisson
I think you’ll find that the public purse is owed a considerable sum in unpaid tax and social security contributions, so please donn’t say that the taxpayer is not losing out. It might be best to check your facts before posting.
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It is a good thing that somebody has taken over the company,otherwise there would be a shortage of taxis and also drivers out of work.Hopefully this way not so many people lose out.
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