Bank recalls Allisons loan
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• The chairman and managing director of Allisons Freightlines Ltd., Dundee, Mr. James Allison this week put forward proposals which he hoped would protect the interests of sharehblders and creditors and resolve the problem created by the threatened withdrawal of credit from Lloyds Bank. Last Friday the company had been served with a notification by Lloyds Bank to repay £300,000 or face the prospect of a receiver and manager being put in.
Lloyds are the trustees for the debenture stockholders and they claimed that there had been breaches of the debenture trust deed; Allisons. it was stated, had exceeded its borrowing agreement by four times, and that the total had at one time been as high as £1.4m.
Mr Allison said this week that although the company had turned in a loss of £192,000 last year, it was now trading profitably; in his view the stockholders' security was not in jeopardy, and the Allisons board was convinced of the company's viability.
News of the threatened foreclosure depressed Allison's' shares from is 104-cl to 7-1d but by Wednesday this week they had risen to is 3d.