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Bank cuts force Weldon Plant into administration

2nd September 2010, Page 131
2nd September 2010
Page 131
Page 131, 2nd September 2010 — Bank cuts force Weldon Plant into administration
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chris.tindallfarbi.co.uK NORTHAMPTONSHIRE construction haulier Weldon Plant claims it has gone into administration because its bank made substantial cuts to its facilities without notice.

The Corby business, which has a licence for 30 vehicles and employs some 140 staff, says administration was the only course of action after months of negotiation with Royal Bank of Scotland (RBS).

Rumours about the company, which made a pre-tax loss of £40,000 during 2008/09, had been circulating for some days.

A statement by chairman Peter Webb says: "After 30 years of successful trading and weathering the first part of the current recession, the situation is that the company has, for the past two months, been trying to renegotiate its banking facilities.

"During those negotiations, the bank twice made substantial cuts to our banking facilities without notice and, in our opinion, without justification.

"This has placed strain on our cash flow and delayed payments to suppliers and subcontractors, many of whom are small sole traders and partn erships.

"After lengthy and detailed discussions, the directors are of the opinion that the only way forward is to place the company into administration."

Weldon's last set of accounts show that it made an operating loss of 057,000 for the year ending 28 February 2009.

A spokesman for RBS says: "We arc making a sustained effort to work with Weldon Plant to address its issues."