Foden reassurance
Page 15
If you've noticed an error in this article please click here to report it so we can fix it.
ALTHOUGH FODENS LTD, of Sandbach, has had to ask for Government aid to overcome liquidity problems following expansion, operators will not experience any increased delays in the delivery of vehicles on order as a result of the present situation — if anything, quicker delivery may result. This was made clear to CM on Monday by a Foden spokesman, who said that the company still has a six-month order book.
The financial assistance from the Government will also mean that factory redundancies will now number 60 to 80 instead of the 180 originally feared(CM Dec 13).
The Government has guaranteed Fodens' over
draft; within four to six weeks it will have prepared a package deal for the medium to long-term finance of the company. The Government is expected to take some sort of stake in the company in return for further aid. At the moment about 30 per cent of Fodens' shares are held by large institutions, less than 5 per cent by the family and directors, and the rest by small shareholders. Leyland sold its 271/2 per cent shareholding several years ago.
Chairman, Mr William Foden expects the "peak overdraft" situation to be overcome within four months, by which time dealing in shares— now suspended — should have been resumed.