Barclay brothers given six weeks to strike deal to avoid bankruptcy

"HSBC initiated bankruptcy action in December over debts stemming from the collapse of Logistics Group, the parent company of delivery firms Yodel and ArrowXL. The group fell into administration in March 2024 after HSBC called in its loans. Administrators recovered just £1.1 million of HSBC's £143.5 million secured lending, representing less than 1p in the pound, according to filings by Teneo at Companies House."

"At a High Court hearing on Tuesday, Mr Justice Michael Briggs granted the brothers until 17 March to circulate proposals for individual voluntary arrangements (IVAs), a formal insolvency process allowing debtors to agree repayment terms with creditors and avoid bankruptcy. IVAs allow individuals to retain greater control over their assets than bankruptcy, but require the support of creditors representing at least 75 per cent of outstanding debt."

Howard and Aidan Barclay were given until 17 March to circulate proposals for individual voluntary arrangements (IVAs) after HSBC launched bankruptcy proceedings linked to Logistics Group debts. Logistics Group, parent of Yodel and ArrowXL, fell into administration in March 2024 when HSBC called in its loans. Administrators recovered £1.1 million of HSBC's £143.5 million secured lending. IVAs require support from creditors representing at least 75% of outstanding debt and allow individuals greater control than bankruptcy. HSBC has not stated whether it will support any IVA proposal. A further court hearing is scheduled for 31 March. Related debts were previously bought by RedBird and IMI, and IMI has appointed Interpath Advisory to manage disposals.

Read at Business Matters