City Link administrators sell off £1.125m of assets

 
Catherine Neilan
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City Link: The sell off of assets begins (Source: Getty)
City Link administrators EY have sold partial assets from the defunct parcel service, raising £1.125m to help pay off its creditors, which includes a £20m debt owed to private equity owner Better Capital.
Joint administrators Hunter Kelly, Charles King and Tom Lukic have sold cages, scanners and certain intellectual property to Aim-listed rival DX Group, an independent parcels, mail and logistics network operator.
Kelly said: “ “This transaction represents our first step in realising the value of City Link’s assets. We will continue this process over the coming weeks, alongside conducting an orderly wind down of the company’s operations.”
Petar Cvetkovic, chief executive of DX, said: “It is very sad that City Link has been unable to continue as a going concern, particularly for its employees and contractors. The administrators are now proceeding with an orderly sale of assets and we have made a limited investment to acquire certain assets.
"We are also doing all we can to provide opportunities for former City Link employees and contractors and to offer solutions to customers who may need a new carrier.”

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