'Rescue' bid for Allisons
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AMALGAMATED RUBBER OFFER WILL LINK DUNDEE HAULIER WITH SPINKS TRANSPORT
• Allisons Freightlines was saved from possible liquidation by the intervention on Tuesday of Amalgamated Rubber and Industrial Products Ltd., which made a shares-or-cash offer after an approach through its subsidiary, the Darlingtonbased Spinks Transport. Since early December the future of the Dundeebased company has been in doubt. Lloyds Bank, who were trustees for the debenture stockholders, served notification for the repayment of £300,000 on December 13, repayment to be made within four days. Mr. James Allison, chairman and managing director of the company, told the bankers that this was not possible and Lloyds made application to appoint a provisional liquidator and manager.
A manager was appointed over Allisons' English assets but at the Scottish Court of Session on December 20, Lord Fraser rejected the petition as it affected the Scottish side of the business. Following the December 20 hearing Mr. Allison approached Lloyds with proposals which he said would protect the interest of all the creditors, but these were rejected by the bank and a further application was made by them to the Scottish Court of Session.
At the second hearing, which took place on January 17, Lord Fraser refused to grant interim interdict against Allisons to prohibit them making payments out of monies received by them in respect of debts secured to Lloyds Bank. Lord Fraser said that the figures submitted to the court did not demonstrate at all conclusively that the company was insolvent.
Throughout the proceedings, Allisons directors have maintained that the company was viable and, despite having shown a loss of £192,000 last year, was now operating profitably.
At the same hearing Allisons had an application before the court for an injunction to restrict the activities of Mr. M. E. Jordan, who had been appointed manager over Allisons' English assets by Lloyds. Prior to the hearing, Mr Jordan gave a personal undertaking that he would comply with the terms of the injunction.
In December, following the first hearing, Amalgamated Rubber through one of its subsidiaries, Spinks Transport Services Ltd., of Darlington, approached Allisons with an offer of take-over. A meeting was
arranged between Mr. James Allison and Mr. W. G. Spink, managing director of Spinks Transport, at Scotch Corner, and Mr. Allison told CM this week: "The details of the take-over discussed at that first meeting are largely those which were finally agreed to on Tuesday". It is understood that the holders of Allisons 8+ per cent debenture stocks are to be offered unsecured stock in Amalgamated Rubber or have their cash returned. The ordinary shareholders are being offered one Amalgamated Rubber for five Allisons.
In an interview with Commercial Motor this week, Mr. Allison said that the company now had the support of a strong group in the city and 'he saw the future with a great deal of confidence. At the same time Mr. W. G. Spink told CM that Allisons would continue to operate in their existing livery with Mr. Allison continuing as managing director. Spinks operate 45 tractive units and 82 semi-trailers from depots at Norwich and Darlington. Allisons have 360 vehicles based at six depots throughout Great Britain. The new company will cover the whole of the country other than Wales and the South West.
Mr. Spink and his co-director, Mr. L. Cussins, are both members of Amalgamated Rubber board and it is under stood that Mr. Allison is likely to be invited to become a director later this year.