AN undischarged bankrupt who set up another company that later went bust with debts of almost £250,000 has walked free from court.

Burnley Magistrates heard how John Oddy, 59, who dealt in printing machinery, had earlier gone bankrupt owing nearly £300,000 -- but within months he was running a similar business even though he knew he was banned from doing so.

The prosecution told the court the defendant had "resurrected his business in a different guise and just carried on as before." But his solicitor claimed Oddy had simply hoped to start again to provide for his family.

Oddy, of Chevassut Close, Barrowford, admitted managing a company while disqualified between June 1998 and March 2001 and reusing a prohibited company name in September 2000. He could have been jailed for up to six months but was instead given a 160-hour community punishment and was disqualified under the Company Directors Act for three years.

The bench, told the case had cost £10,500 to bring to court, made no order for costs because of Oddy's current means.

Andrew Church-Taylor, defending, said the defendant had no previous convictions, and had not sought to defraud creditors. Oddy had originally set up Active Printing and Graphics Machinery Ltd in 1992.

His second business ran into problems when backers took their money out . Mr Church-Taylor said the defendant was now living in rented accommodation . His wife, who had not previously worked, was now a £75-a-week cleaner but Oddy was unable to get a job.