PRIVATE carriers for a York parcel delivery company were today rejoicing at the news that they are to be paid at last.

Seven independent delivery drivers for Laudan Ltd, which traded as a franchise for Business Post in Murton Lane, Murton, claimed that they were owed £25,000 between them - as the company prepared to go into voluntary liquidation on Wednesday

But a deal struck last night between the drivers and the Birmingham head office of the franchise will ensure that they will be paid.

One of the drivers, who preferred to remain anonymous, said: "We are very happy. Just when we were beginning to lose faith, we have discovered there is some good in business."

The row erupted after Simon Holt, director of Laudan Ltd, sold the franchise and assets of the Murton Business Post to Ian McKay.

David Willis, of Jacksons Jolliffe Cork, liquidators, based in Low Ousegate, York, confirmed today that Mr Holt had asked for Laudan Ltd to go into voluntary liquidation.

A meeting of shareholders and creditors will be held at Lady Anne Middleton's Hotel in Skeldergate, York, on Wednesday, when a liquidator will be appointed.

Mr Willis said: "Mr Holt sold the business and assets to Mr McKay, but the terms were that had the company ceased to trade before the sale took place, then the franchise agreement would terminate."

He said the business was sold as a going concern, although the sale proceeds had been retained by the company's solicitors pending the liquidation.

"Assets are not sufficient to pay for the liabilities. It is likely that in the fullness of time creditors will receive a dividend, but at present it is impossible to give the timing or amount," said Mr Willis.

The driver said: "We feel really sorry for Mr McKay, who has gone out of his way to help us."

Updated: 10:31 Friday, October 17, 2003