Northshore creditors meeting

Is it just me or does this look like it ought to be illegal? Reads very much like fraud to my uneducated mind!
 
lustyd said:
Is it just me or does this look like it ought to be illegal? Reads very much like fraud to my uneducated mind!
Click to expand...

I do not know whether it is legal, but it is not unusual to have a trading company renting assets from another company associated by directorship or shareholding.

It does show though, that suppliers selling and owners buying from companies that are structured like this are pretty stupid if they do not contract in such a way as to insulate themselves from this sort of practice.
 
At least they managed to pay the rent before they call in a liquidator!! ( suspect they will get some from the liquidator as well)

I would be pi**ed off if i were a creditor by by experience it is just tough !!

Last two companies that went bust on us, the liquidator managed to recover their fees, £350K in one case, but not much else. Best return was 3% of debt.

Some years ago i made a complaint to DoT, about a company where a machine was part shipped to three customers to get the" payment on delivery", and where the liquidator was accountant for the directors, and for the new company, and sold the assets for £5K. DoT said only the liquidator could make a complaint. I doubt the procedure has changes.
 
Ex-SolentBoy said:
"The taxpayer is also faced with £685,853 in redundancy payments for the 130 former employees."

Since when do taxpayers do redundancy?
Click to expand...

If an employer is unable to pay redundancy as in this case because of bankruptcy, liability falls on the National Insurance fund to which we all contribute. The alternative would be for the employees, whose labour created the surplus value that enabled the business and its owners to prosper at least for a time, to walk away with nothing.
 
Ex-SolentBoy said:
Hmmmmmm!!!!!!

http://www.boatingbusiness.com/news101/industry-news/nys-southern-ltd-sinks-with-2m-of-debt


"The taxpayer is also faced with £685,853 in redundancy payments for the 130 former employees."

Since when do taxpayers do redundancy?
Click to expand...
The redundancy payments are at the statutory minimum rate for employees who suddenly find themselves with no income. We are not talking the fat cat golden handshakes here. The redundancy payments office then become a creditor for the sum paid out.it used to be that the RPO and HMRC were preferential creditors but I believe they now have to take their chances with the rest. Only the liquidators are allowed to strip the funds out of the company for their own gain.
 
maby said:
with so few assets, insolvency could have overtaken them very quickly. There's nothing actually illegal about leasing everything and it does insulate you from this sort of crisis.
Click to expand...

Sounds pretty engineered to me. All the assets with Sunchalk, all the liabilities with NSY.

It doesn't sound a particularly sound move though, since they're going to need people to produce new yachts and they're going to need suppliers to provide the stuff to make them.
 
Moonshining said:
Sounds pretty engineered to me. All the assets with Sunchalk, all the liabilities with NSY.

It doesn't sound a particularly sound move though, since they're going to need people to produce new yachts and they're going to need suppliers to provide the stuff to make them.
Click to expand...

and I for one would not be prepared to pay any sort of deposit

what the new company would need is a good journalist with a Southerly on a long term loan to show what great boats they are

as I am not a good journalist.....

Dylan
 
Last edited:
Moonshining said:
It doesn't sound a particularly sound move though, since they're going to need people to produce new yachts and they're going to need suppliers to provide the stuff to make them.
Click to expand...

They're also going to need people to buy them, and if I were in such a position I would definitely think twice before ordering now.

Pete
 
Surprised only 3 boats in build. But if these are going to be completed some staff will need to be re-engaged. Although I am not clear which entity will complete these, presumably not the new trading company ?

And anyone visiting the Southerly website today would be blissfully unaware of all that's going on behind the scenes !
 
"A new trading company has been formed from the ashes of NYS and will continue to produce the Southerly range of swing keel yachts, including the new Dubois designed Southerly 535 due to be premiered at this year’s PSP Southampton Boat Show."

Well well well! What a surprise!
 
Moonshining said:
Sounds pretty engineered to me. All the assets with Sunchalk, all the liabilities with NSY.

It doesn't sound a particularly sound move though, since they're going to need people to produce new yachts and they're going to need suppliers to provide the stuff to make them.
Click to expand...

I'm sure it was engineered - lets face it, several boat manufacturers have gone bust in the last year. Northshore is going to be easier to resurrect than some of the others since all the assets required to continue building boats are out of reach of the receivers. They will have some difficulty with suppliers and will probably have to pay cash for a while, but the boats have a good reputation, so there will probably still be buyers.
 
You must log in or register to reply here.

Share this page

Top