'Uncertainty' as bus operator proposes debt deal

Community Transport for Nottingham (CT4N) Limited runs a number of services across the city and county

A bus operator serving Nottingham and Nottinghamshire has proposed to enter an insolvency process as it faces "challenging trading conditions".

Community Transport for Nottingham (CT4N), which runs more than 20 local services, announced on Wednesday it had proposed a Company Voluntary Arrangement (CVA).

If the CVA is approved by creditors, the company said it would be able to preserve the jobs of about 75 employees and continue trading.

Managing director of the transport firm, Barry Allitt, said it had considered ceasing trading and entering liquidation, but believed it was not in the best interests of staff or the "wider community".

A CVA is a formal insolvency process which allows a company to continue trading as it pays creditors over a fixed period of time.

It is used to avoid liquidation or administration.

The decision date for creditors of CT4N to vote on the proposal is scheduled for 30 October.

CT4N said its "principal creditor" had already indicated their support for the restructuring arrangement.

The firm did not detail the specific challenges it had faced.

According to Companies House, in March, CT4N Limited received notice that it would be struck off, but striking-off action was discontinued the same month.

In August, CT4N announced it would no longer operate the Medilink service, which provided transport between the Queen's Medical Centre and City Hospital in Nottingham.

The operator had run the Medilink service - commissioned by Nottingham University Hospitals NHS Trust - for 11 years before it was re-tendered.

'Continuing as normal'

Mr Allitt said: "The [CVA] approach aims to maximise returns to creditors while safeguarding the future of the organisation.

"CT4N Limited remains committed to working collaboratively with all stakeholders throughout this process and is confident that the CVA will provide a stable foundation for future growth and continued service delivery."

The National Union of Rail, Maritime and Transport Workers (RMT) said: "CT4N has entered a Company Voluntary Arrangement, but services are continuing as normal and RMT members' pay and conditions are unchanged.

"We will do everything necessary to support and defend our members during this period of uncertainty."