Scummy State Bank Brings Good Business Down - Still support bank bailout?

A local company, Wrekin Construction, has had to call in the receivers today. The bank RBS is demanding instant repayment of £2.8 million overdraft, when the company has orders of £40 million this year and £4 million next year so far, and has £1m due in the bank on friday, but the bank has already frozen their account and also refused an offer of shares in the company as security. Sick sick sick. I suspect there are many instances of the same thing going on all over the country, destroying business that has taken years to build, and will take years to rebuild. To those of you who supported the bank bailout, do you still when you see this kind of thing?
Reply to
Maria

£4
he
ing
The web site doesn't give many!
Reply to
Mel Rowing

4
If Wrekin really is a good business then it's going to be taken over as a going concern for a song.
Reply to
Mel Rowing
'Maria' wrote this:
Did the company miss some loan repayments?
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Reply to
aracari

"Maria" wrote in message
It's the 40 million of "secured" work I'm concerned about.
That doesn't necessarily mean orders.
It turned over 100 million in 2006, then 60 million in 2007. It seems to have uncertain orders for 40 million this year.
I dunno. There's just not enough information to say one way or the other.
Reply to
DVH

£2.8 million, compared to the 'secured' orders, or even compared to the £1m they claim they have arriving in the account this friday...
Reply to
Maria
"Maria" wrote in message
I don't think local newspapers are a particularly reliable (or unbiased) source of information. Especially when it's open season on bankers.
Reply to
Mr. Spigot

If you had two thousand pounds in RBS and you went to withdraw it in six months time - and they said, sorry - we cannot pay it to you until we get our money back from Wrekin Construction: what would you say?
Reply to
Judith Smith

£4
the
s
The point is that Wrekin Construction is a subsidiary of Wrekin Plc. It would appear that its owners have taken advantage of Company Law to ditch its limited liability company.
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It's a construction company. Does anything more need to be said?
RBS will lose out since at best it can only expect to get a proportion of its £2.8m back the rest will be the subject of yet another write down. It would not be in its interests to press for repayment if there were any real prospect of full repayment.
Since they have taken this course of action, one can only conclude that they can see no such prospect and to await developments would simply be throwing good money after bad.
Reply to
Mel Rowing

how's their 'donations' to 'new' labour? is the company in a 'new' labour marginal?
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Reply to
abelard

"Maria" wrote in message
I suspect that even though the company had orders of 40m, it's likely that the bank thinks it would cost more than 40m to carry out the work and anything else that the company needs to do such as through downsizing.
The bank will have a charge on the company's assets such as their invoices so they'll be the first to get their dosh. If they leave the company running there's a risk the company will have less assets to liquidate. Lets face it, after years of boom why do they need a 2.8m loan? They don't sound lean and fit to cope with a recession.
Reply to
Fred

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