All businesses that operate heavy goods vehicles (HGVs) and Public Service Vehicles (PSVs) are required to hold an operator licence. That licence brings with it significant obligations to ensure that the transport business is operating its fleet of vehicles compliantly. In the event that those compliance standards are not met, the regulating Office of the Traffic Commissioner has the power to revoke an operator's licence. On sale of assets of a road transport business, the operator licence cannot be transferred to the new business and, without an operator licence, a road transport business cannot put its vehicles on the road.
In addition, a significant requirement for operators is that they must, at all times, demonstrate "financial standing". In essence, the business is required to have excess funds that must be "readily available" to it. Road transport operators will often seek external funding for the purpose of demonstrating financial standing.
This webinar will provide practical advice on how to check that a road transport business is a compliant operation that is not at risk of losing its right to operate vehicles. The webinar will also explain what sources of funding can be used to demonstrate financial standing and, crucially, what "red flags" investors and funders should be aware of when considering whether to provide funds to businesses to demonstrate financial standing. The webinar will explain the practical steps that purchasers can take to ensure business continuity given that licences cannot be transferred from one company to another, especially in distressed or insolvent transactions.
10:30 – 11:30