Prelude Trust plc, which invests in high growth tech companies, said that Administrators have been appointed to SiConnect Ltd, a semiconductor company that has developed products for the Powerline Communications market.

Trust managers DFJ Esprit (formerly Esprit Capital Partners) have been seeking a merger partner or acquirer for the business. Investment bankers were appointed to lead the process however, despite a number of meetings with potential buyers, no offers were received and with no further investment funds available to the company, its directors decided to place the company in administration.

Prelude invested £3.8m in SiConnect, but had already accounted for the possibility of administration in its latest financial reporting statement.

+ + +

TeraView, specialist in terahertz solutions and technology for the pharmaceutical and life science industry, said it has conducted successful proof of principle for high speed measurements of coating thickness on tablets applicable to on-line tablet inspection.

The non-contact, non-destructive technique may also be extended to on-line measurement of other key product attributes, such as coating or core density tablets delamination and many other parameters characterising the performance of drugs which TeraView has identified with its products and collaborators.

In previous studies with its pharmaceutical customers, TeraView has demonstrated its terahertz products and solutions can help to accelerate drug development and design of new formulations, improve product quality and maintain in-specification product to minimise the risk of regulatory non-compliance.

+ + +

Product design and development consultancy 42 Technology appointed Richard Archer, founder and former CEO of The Automation Partnership, to its Board.

Mr Archer has more than 30 years’ pharmaceutical industry experience and will be instrumental in helping build 42T’s profile and sales in the life sciences market. He has helped many of the world’s top pharmaceutical companies to achieve new levels of operating efficiency by automating their R&D and manufacturing processes, and he pioneered an industrialised ‘drug discovery factory’ approach in the search for potential new medicines.

+ + +

CSR and Motorola said they intend to create an open industry forum to evaluate and foster enhanced Global Positioning System (EGPS) technologies. When used on a mobile device, EGPS technologies augment GPS to provide position information in demanding environments. The EGPS Forum is expected to advocate improvement to location technologies in mobile devices and is committed to meeting consumer and regulatory needs for precise and consistent levels of location information.

Current commercialised location technologies meet the basic needs of consumers and minimum regulatory requirements for widespread use in mobile phones – however, high value commercial services require location technologies that provide prompt, consistent and reliable position information, even indoors, within the limited power budget of a portable device. Emergency services also require accurate indoor positioning. The intended goal of the EGPS Forum will be to ensure that technologies which enhance GPS are put in place to meet these advanced requirements.

The EGPS Forum will be open to a broad array of participants from the telecommunications industry including handset manufacturers, location technology companies, network infrastructure providers and mobile network carriers. Initial activities of the Forum will focus on evaluating hybrid technologies that enhance GPS by combining satellite measurements with timing measurements taken from cellular networks and on establishing the underlying infrastructure to ensure full interoperability of this technology.


See Original Article

Even large businesses can struggle with debts. So if you need help and would like advice from the best, call us now. We can help you take back control.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Euro zone governments plan to issue the same mix of debt at the start of 2008 as they did in the first quarter of last year, but the ongoing global credit crisis may result in a tweak to the 600-billion euros schedule.
A year ago, the 10-year Bund future contract was a full three points higher than this January, and investors and issuers had no inkling of the liquidity crisis that later spread from the U.S. subprime mortgage market.
Since erupting in mid-2007, the crisis has seen investors pull out of peripheral euro zone debt and invest more heavily in safest-haven German debt and specifically short-dated debt.
While the height of the credit crunch last year saw corporate bond and asset-backed securities issuance dry up almost completely, analysts do not expect such a drought in government bond supply this year.
Some observers contend that the credit crunch could result in government debt supply issue dates being juggled and unscheduled issuance curtailed. As the recipient of safe-haven flows, Germany is the least likely, however, to juggle plans.
"Countries with a clear calendar like Germany wouldn't want to change their schedules, even if it would favour them," said a senior bonds trader in Berlin.
"They will try to maintain issuance. But more flexible on calendars might be issuers like Spain, Italy and maybe the Dutch."
A sharp steepening of the 10-30 year yield spread to 43 basis points on Friday from 27 basis points at the start of the month was just shy of the two-year peak struck on Nov. 27.


The spread was 42 basis points early on Monday.
If steepness persists, it could discourage issuers from selling ultra-long-dated bonds at auction -- a view shared by an official at one of the sovereigns.
"Investors could in that case just try to buy the paper in the secondary market later on if issuers go ahead and auction them," the official said.
"We are not the largest issuer in Europe, but we know that some of the sovereigns might decide it is too expensive to issue the bonds if yields are driven up. We could defer an issue to the third quarter. Ireland last year left it until September to issue a bond, but we wouldn't want to go beyond October," he said.
Issues mulled or pencilled in, like index-linked or foreign currency bonds, might be cancelled.


STICKING TO SCRIPT


For now, however, the 15-member euro zone currency bloc is sticking to last year's script.
Typically, the first quarter is the busiest for supply, and the 198 billion euros of paper for sale represents a third of the 2008 calendar.
In cash terms, around 21 percent of the first quarter issuance will be bonds with a 2-3 year lifetime, while a further 13 percent will be 15-30-year paper. In duration terms, long-dated paper issuance will have the larger share.
"The issuance by the sovereign debt issuers so far is comparable with patterns seen last year. The subprime mortgage crisis does not appear to have changed the issuers' plans," said Wilson Chin, bond strategist at ING Financial in Amsterdam.
But lower volumes traded in the Bund future and flakey participation in bond auctions so far this year indicate a drop in investor confidence, said Chin.
The flop of the German Bund auction on Jan. 2 was followed by French bond sales the next day which also suffered. Since then, Dutch, Spanish, and Italian bond auctions recorded weak results. The main problem for all tenders has been the lack of investors.
Some investors may be nervous because of the ongoing subprime crisis, said ING's Chin.
While weaker participation in debt sales might make sovereigns anxious, other factors were likely also to have a bearing. Short-dated bond yields are sharply lower than 10-year yields not only because of safe-haven flows but also because of the prospect of falling interest rates in the world's biggest economy, the United States.
"Issuers could look at their Q1 tax take, which in a credit crisis might be smaller, in order to adjust supply in the third and fourth quarters," said Marc Ostwald, a bond analyst at Insinger de Beaufort in London.
But unlike the sensitive swaps market or corporate bond and asset-backed securities, Ostwald said: "Govvies would be less likely to see supply dry up."
Nor would supply bloat out. "Unless you underestimated spending, such as defence and security spending, you won't need to change overall issuance," he added.

See Original Article

If you need help with financial difficulties in your business then call us now. We aim to help you to get back in control.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

A boom in the use of derivatives is giving creditors strong incentives to push troubled companies into bankruptcy rather than help rescue them, according to new research and industry experts.

A study by academics Henry Hu and Bernard Black concludes that, thanks to explosive growth in credit derivatives, debt-holders such as banks and hedge funds have often more to gain if companies fail than if they survive. The study suggests this development could endanger the stability of the financial system.


The findings highlight a crucial problem in corporate restructuring when more and more companies are facing financial difficulties as a result of the credit crunch and US economic slowdown. According to the research and industry practitioners, creditors have a strong interest in voting against a restructuring plan if they have bought credit or loan default swaps, which trigger payments when a company fails.

“Investors now accumulate positions in a company by targeting layers of debt or multiple layers of debt,” said Michael Reilly of the financing restructuring practice at Bingham McCutchen.

“Where their interests lie are less predictable, especially if they also hold credit default swaps. Their financial interests may be best served by forcing a default if they are on the right side of a CDS position.” The problem is compounded by creditors not having to disclose derivatives positions, making it very difficult for companies and regulators to find out their real intentions.

The study by the two University of Texas academics warns that the breakdown in the relationship between creditors and debtors, which traditionally worked together to keep solvent companies out of bankruptcy, lowers the system’s ability to deal with a credit crunch.

“Spread across the economy, the ‘freezing’ of debtor-creditor relationships can increase systemic financial risk,” says the paper, which has been sent to the Securities and Exchange Commission. “[It] can also increase the economy’s exposure to liquidity shocks”.

Marcia Goldstein, chair of the Business, Finance & Restructuring department at Weil, Gotshal & Manges, one of the biggest corporate restructuring law firms, said anecdotal evidence suggested this was a growing problem regulators should address. She added that the current bankruptcy code and securities disclosure rules were inadequate to address the explosion in exotic securities that make it possible for sophisticated investors to cloak their true economic interest.



See Original Article


If you are concerned that your business is at risk of insolvency and would like help then call us now. We can help get you back in control and continue to focus on the business.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

If your business is struggling because of debts then we can help. We can help reduce the repayments so you can focus on trading not debts.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

A bumper year for insolvencies is on the cards, with higher numbers of companies and individuals throwing in the towel, Financial Mail has learned.

The credit crunch, sluggish High Street spending and a 'quickie' personal insolvency regime will produce a sharp rise in numbers seeking legal protection from their debts.
Nick O'Reilly, head of business recovery at accountant Vantis, said: 'In the past two or three years a lot of businesses have survived because they refinanced.

'These are businesses that normally ought to have fallen over. But refinancing is no longer an available option.'

O'Reilly, president elect of the insolvency practitioners' professional body, R3, added that personal insolvencies were also likely to soar.

A change in the law from October will make it easier for people to enter individual voluntary arrangements (IVAs), an alternative to bankruptcy in which debtors repay some of what they owe with the rest written off.

The simplified IVAs (SIVAs) will reduce creditors' power to block an arrangement. One senior insolvency source suggested the new regime could cause the number of IVAs to rise from about 50,000 a year to 100,000.

Fourth-quarter figures for insolvencies are due on Friday.


See Original Article

Debts need not be as big an issue as you might think. In many cases we can help reduce the payments your business makes each month and even reduce the overall debt! Call now for more information.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

The Financial Services Authority does not deserve new powers to intervene in failing banks after its dismal performance in failing to spot the flaws in Northern Rock's business model, a parliamentary inquiry into the affair will conclude tomorrow.

A long-awaited Treasury select committee report into the run on the bank is also expected to criticise the Bank of England's role, including its decision not to inject liquidity into the banking system last summer when the credit crunch started to bite.

Alistair Darling, chancellor, takes flak in the report, but it is understood that the Labourdominated committee is less critical of his role in the crisis.

The MPs' report, which follows several months of inquiries, is the most comprehensive assessment yet of the lessons to be learnt from the near-collapse of Northern Rock last September.

It will call for largescale reforms to the way the tripartite regulatory system - the Treasury, the FSA and the Bank of England - operates, and argue that complacency, lack of communication and clumsy decision-making between the three bodies made a bad situation worse.

Aside from the Northern Rock board - which is pilloried by MPs for triggering the crisis through its flawed business model - the biggest criticisms are saved for the FSA, according to people who have seen the final text.

It will call into question the plan by Mr Darling to give the watchdog new powers to seize and protect depositors' cash when a bank gets into serious difficulty, and then to oversee its recovery. The MPs' preference is for the Bank of England - which is closer to the markets - to have a greater role in ensuring financial stability.

The FSA is accused of failing to spot the flaw in Northern Rock's funding plans or to encourage it to diversify its sources of funding.

Vincent Cable, Liberal Democrat Treasury spokesman, said: "The FSA has failed in every test since it was set up."

Conservatives argue that the Bank of England is better placed to oversee plans for a US-style insolvency regime for banks.

The chancellor will next week launch a three-month consultation on new banking legislation, including the creation of an insolvency regime, under which depositors' savings would immediately be secured when a bank got into serious difficulty.


See Original Article

Are you struggling with debts in your company? Would you like a way to keep trading and get back under control? Then call us now, we can help.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Our prime minister may have a big clunking fist, but he is not nimble on his feet. Take question time yesterday, when Stephen Crabb, a Tory, asked: "Will you tell us what is happening on Britain's streets, when the home secretary needs an armed police escort to buy a kebab?" Tories were in tucks of laughter. Julian Lewis yelled: "Skewered!" By parliamentary standards this was Oscar Wilde.
It all gave Gordon Brown enough time to come up with the correct answer, along these lines: "The home secretary is, unlike almost everyone else, a specific target for terrorists. For this reason she needs a police escort whether buying a kebab in Hackney or performing a fan dance in Helmand.

"Would a future Conservative leader deny protection to the home secretary? In which case, nobody in their right mind would take the job, you blithering idiot." But he didn't. Having the agility of an ageing sumo wrestler after a four-course lunch, he huffed about wanting us all to feel safe, adding: "There are more police than ever in our country ..."
The Tories, already feeling merry, twigged, unlike the prime minister, that a very large number of those police were at that moment marching on Westminster, to protest against his weird decision not to backdate their pay rise.

The delighted Tories resembled football fans who see their team score in the first minute, then watch the other lot score an own goal in the second.

David Cameron produced a bunch of zingy one-liners. Labour people point out that these are "pre-prepared", and so they are. In which case, you would think that the prime minister would be a little readier to deflect them. The Tory leader asked questions which he must have known would elicit no answer, such as, how much is this Northern Rock fiasco going to cost us all? Of course Brown did not reply, partly because he doesn't know and partly because the real answer would send MPs gibbering in terror from the chamber.

Cameron was scathing about the prime ministerial chats at 40,000 feet with Richard Branson. Brown was like "a used car salesman who will not tell someone the price, will not tell them the mileage, and will not give them a warranty. He has gone from prudence to Del Boy without touching the ground!" (I had a happy vision of a Reliant Robin marked Branson Independent Trading - Peckham and Mustique.)

Brown's only reply was to complain that the Tories changed policy on a daily basis. (So has the government, though when they chop and change, it matters.) Cameron said Brown didn't know the difference between administration and liquidation. "Administration is what the government are in at the moment; liquidation is what the British people are going to do at the next election."

Brown repeated himself, again. Perhaps he is still jet-lagged.

Nick Clegg, the Lib Dem regent, repeated the line from his grand vizier, Vince Cable, that Brown was nationalising the debts and privatising the profits. "He is running scared of the Conservatives!" he said, and the Tories cheered as they gazed at the lumbering Brown.


See Original Article

If you have unmanageable debts in your company then call us now. We can help reduce the payments and allow you to take back control.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Christies Leisure Group director Howard Holland and Guernsey Nightclubs managing director Martin Rogan were each handed the bans by the High Court, Belfast, because of their conduct as directors of CI Restaurants (Ireland) Ltd, which traded as Christies Brasserie in Belfast’s Linehall Street.
The restaurant opened in 2001, but went into liquidation in September 2004 owing nearly £500,000.
The disqualification covers the whole of the UK, but is not applicable in Guernsey.
Mr Holland’s lawyer, Advocate Peter Ferbrache, said yesterday that the ruling from last May did not in any way affect his client’s Guernsey operations, which include Christies, Barbados, Le Petit Bistro, The Boathouse and The Square.
‘Howard Holland’s companies in Guernsey are all financially stable. This does not affect it. This all dates back some years and has no bearing on his ability to be able to trade in Guernsey and he will continue to trade in Guernsey as he has done.’
The Department of Enterprise, Trade and Investment in Northern Ireland brought the matter to the High Court.
Master Redpath, who presided over the case, said there was a total Crown debt of £657,515 from the two men’s failed companies.
Matters of unfit conduct alleged by the trade department in relation to Mr Rogan as a director of Christies included causing the business to be financed by non-payment of £284,225 of monies properly payable in respect of the Pay As You Earn system, National Insurance contributions and VAT.
The court also heard he had failed to learn from previous experience in that he was the director of two other failed companies that were also financed by £373,290 owed to the Crown.
Mr Holland also answered to propping up Christie’s with £284,225 and with failing to learn from his previous experience when he was director of another failed company that was financed by £72,808 owed to the Crown.
In a statement released yesterday, Mr Holland said: ‘Although an article has very recently appeared in the Irish Press, these events go back over a number of years.
‘The company that I was principally involved in in Ireland was a restaurant business and even then I was not the majority shareholder. Unfortunately through adverse trading conditions the company failed.
‘I and my partner in the business, Martin Rogan, ensured that suppliers and others who could have been adversely affected by the company’s liquidation had their accounts paid.
‘We took advice and traded properly. Unfortunately, as stated, due to adverse trading conditions, the company failed, but the only creditor was the Crown.
‘There is reference to me being involved in another company but I was very much a minority shareholder in respect of that company and had resigned as a director some significant time before it went into liquidation.
‘That salutary experience has taught me that it is extremely difficult to try and run a catering business from outside of these shores.’
Mr Rogan, whose local business covers Rogues nightclub, Claddagh and Praha, which was formerly Milanos, echoed those words and said his businesses too were going strong.
He added that he was no longer a business partner of Mr Holland, having bought Guernsey Nightclubs from him in 2003.
Peter Neville, director-general of the Guernsey Financial Services Commission, the regulatory body for the island’s finance sector, said the commission was not in a position to comment because the matter involved two restaurateurs, who were not involved in regulated financial services business in Guernsey.
A police fraud department spokesman said it was not looking into the case.
‘If you are disqualified as a director, it is a civil matter and regulatory.’



See Original Article

Is your company drowning in debt? Then call us now. We can help get you back in control of the situation.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Allsop's Bakery in Belper has closed due to insolvency.
The King Street shop closed its doors on Friday when staff were informed of the news.

Customers hoping to buy their bread and cakes from the family business will now be left disappointed to find the shop in darkness and a sign up informing people of the insolvency proceedings.


See Original Article

If you have debts in your company and would like advice on the best way to get them under control then call us now. We can help reduce the repayments and allow you to take back control.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Alistair Darling made a last-ditch attempt to keep Northern Rock as a private company yesterday by proposing a huge new government guarantee of the troubled bank’s mortgage assets.

The Treasury began direct negotiations with the bank’s board after accepting a plan from Goldman Sachs, its City adviser, that it believes will keep hopes of a private-sector solution afloat. After a week in which nationalisation looked increasingly likely, The Times learnt that negotiations had started on a proposal to “securitise” its £25 billion-£30 billion debt to the taxpayer. The debt would be repackaged into bonds and in effect sold as Treasury gilts, allowing the government loans to be paid back in the short term. The Government would still run a big risk because its guarantee would be backed by mortgage assets. In theory it would have to pick up the cost of mortgage holders defaulting.

The Chancellor’s move will be regarded as a way of helping the existing bidders, Virgin and Olivant, to press on. Both appeared to have exhausted options for financing the purchase of the Rock without government help.

A source close to the negotiations told The Times that ministers felt that in the present market conditions the Goldman Sachs proposal for financing a private-sector solution met the Government’s objectives. Sources said that public ownership remained an option. It is one that Mr Darling and Gordon Brown want to avoid if at all possible.

Gilts are considered by institutional investors such as pension funds to be the safest type of fixed-income asset. The Government’s guarantee would be backed up by the assets that Northern Rock has turned over to the Bank as security against its emergency loan, taken out when it could not secure funding amid the credit crisis.

Sources have cautioned that it may be difficult to persuade institutional investors to snap up the new gilts. “There are not buyers for £25 billion of sterling out there,” one source said.

Mr Brown, speaking in Beijing, told BBC News: “The issue now is to keep all options open, so that Northern Rock’s services have a future in the British economy. No option is ruled out. But whether it is public ownership or private, it’s on the way to being a private-sector solution in the long term.”

Northern Rock announced the appointment of a new non-executive director, Paul Thompson. Sources said that he had been primed to take over as chief executive if a management-led solution won favour.

The tripartite authority of the Bank of England, Treasury and Financial Services Authority appointed Goldman Sachs in September to evaluate potential options for a private sector sale. They gave a cut-off point of mid-January to reach its conclusions.

There were growing expectations last night that a decision could be announced to the Commons by Mr Darling as soon as Monday, probably coupled with another to the Stock Exchange.


See Original Article

If you are concerned about the levels of debt in your company and would like advice on your options then call now.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

A glance at the website of ACA Capital gives no clue to the trouble the company is in, or indeed the billions of dollars of losses it has caused at some of the world's biggest banks.

The website advertises the services provided by the bond insurance company but makes no mention of the fact that ACA, which has deals with more than 30 banks to guarantee payments on more than $60bn worth of bonds and derivatives, last night faced a deadline to pay close to $2bn or face insolvency.

Many of the banks it has done business with have already assumed it will not be able to survive, with Merrill Lynch this week taking a $1.9bn writedown to factor in such an event. Others include CIBC in Canada and France's Crédit Agricole.

ACA stopped updating its website last summer, back when it would have seemed highly unlikely that a "monoline" - or a specialist bond insurer - would be hovering on the brink of collapse six months later.

But the complicated mechanism of the credit derivatives world has led to a surprising chain of events.

Standard & Poor's rated ACA's creditworthiness as a strong single-A last June when the rating agency praised the company's "refocused, lower risk business plan" and "its sound capital position".

The credit rating lies at the heart of the bond insurance business. A company such as ACA would charge bond issuers a premium for using its strong financial position to guarantee the security.

ACA has been a big player in the market for insuring collateralised debt obligations, complex debt instruments backed by payments from other bonds or loans or assets. Each CDO is divided into different slices, with different levels of risk, and ACA has guaranteed many of the lowest-risk, or triple-A rated, slices.

Then last year, mortgage-backed bonds started to see higher levels of default than expected due to a wave of foreclosures in the risky subprime mortgage market. The higher risks translated into higher default risks for all CDOs, including triple-A rated CDOs that were supposed to be extremely safe.

ACA used to pride itself on understanding such risks. "Correlation is a critical risk factor in everything we do," James Rothman, its head of structured credit, said last June.

"We endeavour to achieve the most meaningful modelling possible on the question of correlation."

ACA announced results last November that showed enormous losses after a drop in the market value of mortgage-related securities to which it was exposed, leading to its ratings being cut. S&P cut ACA's ratings from the relatively low-risk A category to CCC, one indicating a very high risk of default.

That, in turn, meant that banks were allowed to ask the bond insurer for extra cash to back their contracts with ACA. ACA was given until last night to come up with the extra collateral.

The ACA experience highlights how quickly such chain reactions can escalate.

Other insurers such as MBIA and Ambac are also facing pressure to come up with extra capital in light of bigger than expected losses.

In the case of the two largest monolines, which until now have had much stronger ratings than ACA ever had, it is assumed they will not have to offer collateral if ratings fall a little.

There is, however, little public knowledge of the exact terms of contracts, so it is hard to assess the risks that a company will get hit by a liquidity crisis following rating cuts.

The failure to spot the problems at ACA just weeks before they emerged is a salutary reminder of the potential for further credit storms.

Monolines lend their credit rating for a fee

What is a monoline?

A company that insures against the risk of a bond or other security defaulting. For a fee, bond insurers promise to make the payments on the insured security over the lifetime of the security. American insurers MBIA and Ambac are the world's biggest.

Does an investor buy bond insurance?

No. When a company or public entity decides to issue a bond, it arranges the insurance itself - if it wants to. It then pays the bond insurer to guarantee its bonds. Because this should make the bonds safer, investors should, in theory, require lower interest payments to lend the money.

Bond insurers essentially lend their rating to less credit-worthy borrowers.

Who uses bond insurance?

The market developed in the US in the 1970s as municipal borrowers, such as small towns or regions, realised they could borrow money from big investors if they were guaranteed by bond insurers with triple-A credit ratings, the best possible. Bond insurers have developed businesses around guaranteeing payments on structured or securitised bonds. Some have also entered the derivatives market.

So what is the problem now?

Some of the assets behind the complex bonds were mortgages, including US subprime mortgages. The soaring rates of delinquencies on these mortgages means payments to the bonds have stopped. Losses on these bonds, some of which are called collateralised debt obligations have been higher than expected, and the bond insurers have to find extra capital to be sure they can meet their obligations. Without the extra capital, they could lose their triple-A ratings, and no longer be able to insure as many bonds.


See Original Article

If you are concerned that your business is struggling to cope with debt then call us now. We can help reduce the monthly payments and even reduce the overall debt in some cases. For more help and information call us now.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

There is going to be further strain on consumer finances this year, according to Credit Action.

"If we look at the cost of credit going up and being harder to come by as well, in 2008 I think people's general financial situation is going to squeeze," Chris Tapp, director of national money education charity said.

The organisation reports that this could lead to an increase in the number of individual voluntary arrangement (IVA) applications as people seek help with their debts.

However, Mr Tapp claimed that this may not necessarily lead to a rise in the number of IVAs as changes to regulation may mean they are harder to come by.

The Insolvency Service has revealed that during the second quarter of 2007, there were 26,956 individual insolvencies in England and Wales, an 8.1 per cent decrease on the previous quarter and a 4.2 per cent increase on the corresponding period in 2006.


See Original Article

Debt is a problem which is increasing and many companies are collapsing as a result. We can help save your business and keep you trading. If you would like more information drop us a line, we are always happy to speak to you.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Gold prices fell sharply to a one-week low on Wednesday in choppy trading as funds frantically liquidated positions to cover margin calls amid steep losses, triggering a broad sell-off in commodities.
A sharply higher dollar versus the euro after hawkish comments from a European Central Bank official and signs of slowing demand for physical gold from top consumer India also weighed heavily on gold.
With a recovering dollar, sliding energy prices and little support from buyers, the weakness in gold prices was expected to continue into Thursday, dealers said.
"Today was the day traders, because of the significant move in the price of gold, had to answer margin calls. And it spread to other commodities. Nothing was immune from long liquidation today," said George Nickas, precious metals broker with FC Stone in New York.
"This most likely will continue into tomorrow before the dust settles," Nickas said.
Bullion dropped sharply in overnight trade as weaker oil prices encouraged investors to take profits after a failed run at record highs above $914 per ounce on Tuesday.
Losses were extended as the euro tumbled nearly 2 cents against the dollar, making dollar priced gold dearer for non-U.S. investors.
Gold was quoted at $885.60/886.30 in New York at 2:15 p.m. EST (1915 GMT), down more than 2.5 percent from $899.50/900.20 quoted late in New York on Tuesday, after trading in a wide band of $877.80 to $899.25.
The most-active gold contract for February delivery at the COMEX division of the New York Mercantile Exchange settled down $20.60, or 2.3 percent, at $882.00 an ounce.
"People want to take some money off the table. Today the only thing that supported the market was some minor short covering. Tomorrow morning, the market is going to be under the same stress," Nickas said.
Nickas also cited bearish signs about India's gold demand for Wednesday's weakness.
India's Bombay Bullion Association said on Tuesday the country's imports of gold in 2007 could have fallen by 20 percent due to a surge in prices. In 2006, India imported about 715 tonnes of gold.
The euro fell against the dollar after European Central Bank governing council member Yves Mersch said the central bank may lower its euro zone growth forecasts for 2008.
A further drop in crude oil prices dented the metal's appeal as a hedge against inflation.

U.S. crude futures settled down $1.06 at $90.84 a barrel after on a sharp build in U.S. crude stocks and rising concerns that economic problems could erode fuel demand in the world's top energy consumer.
Meanwhile, gold held in New York-listed StreetTRACKS Gold Shares, the world's largest gold-backed exchange-traded fund, rose to a record 652.56 tonnes this week.
Goldman Sachs raised its 2008 gold price forecast to $915 per ounce from $800, factoring in an expected U.S. recession in the second and third quarters that would lead to a weaker dollar.
In other bullion markets, the key Tokyo gold futures contract for December 2008 delivery closed at 3,048 yen a gram, down 116 yen, or 3.7 percent, from Tuesday's close.

Platinum fell to $1,559/1,564 from $1,571/1,576 an ounce late in New York on Tuesday and off Monday's record high of $1,590.50.
Silver was at $15.77/15.82 an ounce, versus its previous finish of $16.10/16.15.
Palladium dropped to $371/376 from Tuesday's close of $378/383. (Additional reporting by Atul Prakash in London and Lewa Pardomuan in Singapore; Editing by Walter Bagley)

See Original Article

If you are struggling to cope with the repayments on your debts, got CCJ's or Winding Up Petitions against you we can help. We specialise in saving companies which are struggling so they can go on to a productive and prosperous future. Call us now for help and advice.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Lenders will be allowed to stop repaying debts if they receive a court order under plans outlined in a radical government consultation released yesterday.

The paper, issued by the Ministry of Justice, will allow individuals who fall into financial difficulty, such as loss of employment, to stop paying off loans, credit cards and other debts if successfully applying for an 'enforcement restriction order'.

The Times reports that the proposals mark the biggest overhaul of personal insolvency laws for years at a time when banks are preparing themselves for heavy losses from bad debts.

Civil justice minister Bridget Prentice said the government wanted to allow people who had run up debts 'every opportunity' to pay them off.


See Original Article

Is you business drowning in debt? We can help. We use Government Legeslation to help you reduce your monthly repayments and even reduce the overall debt! For more information call us now.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

A government inquiry into the failure of MG Rover has so far cost £11m, it has been revealed.
The investigation into the Birmingham-based car maker was ordered after the firm collapsed in April 2005, with the loss of 6,000 jobs.

Enterprise Minister Stephen Timms told the House of Commons that in addition to the total cost, disbursements of £425,596 had also been paid.

Mr Timms said he did not know when the inquiry report would be published.

He said costs as of December 31 came to a total of £10,730,194, with further "disbursements" of £425,596.

Mr Timms was responding on Tuesday to a written parliamentary question by the Great Grimsby Labour MP Austin Mitchell.

The inquiry, which is still ongoing, was started in January 2006.

The government called in fraud and insolvency specialists to help the official inquiry into the failure of the firm.

MG Rover was bought by Nanjing Automobile Corporation in July 2005.

See Original Article

If you need help getting your business debts back in control then call us now. We can help reduce your monthly payments and even write off a percentage of the debt in some cases. Call us now for more information.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

SEVEN prison officers were injured when black and Irish prisoners clashed in a mass brawl inside a crowded jail.

A female warden suffered facial injuries when an inmate cracked a bin over her head when the fight erupted in Brixton Prison's A wing.

Inmates used pool cues and balls in socks to batter each other when an argument, believed to be over drug debts, turned violent.

One witness said up to 60 inmates where involved in the mass brawl just after noon on Thursday.

A prison source said: "It was chaos... a major brawl between black inmates and Irish inmates.

SEVEN prison officers were injured when black and Irish prisoners clashed in a mass brawl inside a crowded jail.

A female warden suffered facial injuries when an inmate cracked a bin over her head when the fight erupted in Brixton Prison's A wing.

Inmates used pool cues and balls in socks to batter each other when an argument, believed to be over drug debts, turned violent.

One witness said up to 60 inmates where involved in the mass brawl just after noon on Thursday.

A prison source said: "It was chaos... a major brawl between black inmates and Irish inmates.


"It wasn't short of a full-on riot. At least seven wardens and one inmate were injured.


"There had been a smaller disturbance on Tuesday but this time it really kicked off.


"It took about two dozen wardens to break up the brawl. Drugs are still a major problem inside the prison and I think an argument over drug debts between black and Irish inmates led to the fighting.


"The regime needs to be toughened up here.


"Inmates should not be able to pick up pool cues and balls and use them as weapons. There is not enough discipline."


London Ambulance Service confirmed paramedics were called to the overcrowded jail in Jebb Avenue, off Brixton Hill, twice after the brawl.


One patient was taken to hospital with minor facial injuries and another was taken to hospital an hour later. Their injuries are not known.


Other casualties are understood to have been treated in the prison's hospital wing.


The Prison Service has described the brawl as a minor disturbance.


A spokesman said: "At 12.15pm on Thursday, January 10, a disturbance occurred at HMP Brixton when a fight broke out between two prisoners and approximately 12 prisoners refused to return to their cells.


Staff responded swiftly and professionally and all prisoners had been safely returned to their cells by 12.45pm.


"The incident was dealt with very efficiently although a small number of staff required hospital treatment.


"There will be an internal investigation into the cause of the incident and the police have been informed."




See Original Article

Many companies suffer with excessive debt from time to time. There is nothing to be ashamed of, many companies experience the same difficulties. Here at Debtsgone we aim to help you get back on your feet and in control again. For more information call or email us, we are always happy to help.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

JPMorgan is to launch a new Income and Capital trust under proposals for a members’ voluntary winding-up and scheme of reconstruction for the existing JPMorgan Income & Capital Investment Trust.
Under the proposals the existing trust would be wound up on 29 February 2008 by means of a members’ voluntary liquidation.

JPMorgan Income & Capital Investment Trust was launched in March 2002. Shareholders who wish to continue their investment are being told they can do so in a new investment trust called JPMorgan Income and Capital Trust.

JPMorgan says the new trust will be managed by JPMorgan Asset Management under Jamie Streeter, who currently manages the trust’s equities portfolio.

The new trust will offer investors an investment of a planned life of 10 years. JPMorgan says the board of directors of the new investment trust will remain the same as that of the existing trust.


See Original Article

If you are struggling with debt in your company then call us now. We can help get you back in control.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Liverpool FC could change hands for the second time in a year as their American owners encounter difficulties in refinancing £350million of debt incurred in taking over and running the club.
Beset by the steeply rising costs of a new stadium and manager Rafa Benitez's demands for new players, Tom Hicks and George Gillett Jr have been attempting to transfer the debt, for which they are personally liable, on to the club itself. City sources believe this is an extremely difficult task to complete before the loan's due date at the end of February.

Liverpool FC could change hands for the second time in a year as their American owners encounter difficulties in refinancing £350million of debt incurred in taking over and running the club.
Beset by the steeply rising costs of a new stadium and manager Rafa Benitez's demands for new players, Tom Hicks and George Gillett Jr have been attempting to transfer the debt, for which they are personally liable, on to the club itself. City sources believe this is an extremely difficult task to complete before the loan's due date at the end of February.


It is possible that the Americans will meet the deadline, but if not an Arab investment group, Dubai International Capital, is understood to be close to lodging an offer to buy out the American pair, probably for about £500m. Takeover discussions are thought to be due before the end of this month.
If successful, DIC, led by Liverpool supporter Sameer Al Ansari, would invest heavily in two areas: the new stadium that Liverpool need if they are to compete with Arsenal and Manchester United for matchday revenue, and an improved playing squad. Were they also to acquire a new management team Jose Mourinho, who is known to be interested in managing Liverpool, would be a prime candidate.

DIC were extremely close to buying Liverpool last February, only to lose out to Hicks and Gillett when the club's chief executive, Rick Parry, switched his support from the Arab camp to the American. The latter paid £174.1m for a 100 per cent shareholding, also agreeing to take on the club's then debt of £44.8m.

The purchase, however, was funded solely with borrowed money, Hicks and Gillett's loan from the Royal Bank of Scotland swelling to £350m as it was used to fund several high-profile summer transfers, development work and architect's plans for a 60,000-seat stadium in Stanley Park, and to roll up the interest on the debt.

The RBS loan is due for repayment next month. The Observer understands that attempts to restructure it have so far failed and the Americans have yet to inject new equity into the refinancing.

While RBS have asked Hicks and Gillett to each commit £20m of their own cash to the deal, City sources believe that at least one of the pair is not prepared to do so. Hicks and Gillett declined to comment last night.

Meanwhile, work on 'New Anfield' has been held up by the impasse over the acquisition loan, with no chance of funding being put in place for the £400m stadium project until the issue is resolved. A meeting in New York last week at which architects HKS and AFL presented competing stadium designs, was described by Parry merely as 'another big step forward to finding the best possible solution. Everyone is reflecting on what they have heard and a clear decision will be taken soon'.

The global credit crunch has made it harder for Hicks and Gillett to raise new revenues elsewhere and also affected the value of their other assets. Should they fail in their efforts to repay the £350m acquisition debt on Liverpool when it comes due in just over six weeks, there would be the possibility of the next owner of the club becoming RBS.

The bank, however, are extremelyunlikely to allow the situation to develop that way. Nor are Parry and club honorary life-president David Moores, the former principal shareholder. Parry and Moores are horrified that the Hicks-Gillett deal has not thus far brought long-term financial stability to the club. As a consequence, there are increasing tensions between the Americans and other board members as the refinancing deadline approaches. Parry and Moores are understood to be open to a second takeover.

Sources in the Middle East have confirmed that DIC remain as keenly interested in buying Liverpool as they were one year ago. DIC last night refused to comment on the matter, but they appear best placed to resolve the financial problems affecting the club's competitiveness in the Premier League. A mooted valuation of £1billion has been ridiculed, but an enterprise value of around half that figure might prove acceptable, allowing the Americans to exit with a profit of £75m each.


See Original Article

If you need help with debt in your business then call us now. We aim to help you get back in control.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Beginnings of a CDO firesale? After two months of tension, all of a sudden, senior debtholders can’t seem to liquidate their CDOs fast enough.

Around 58 CDOs are understood to have triggered events of default. And FT Alphaville understands that 25 of those CDOs have been “accelerated” - whereby all the notes are declared to be immediately due and payable, enforcing a true capital waterfall. Acceleration, we’re told, is expected as the natural precursor to liquidation.

Cue Reuters, which reports on several liquidations they’ve anecdotally heard of going through in the next few days:

Managers of several so-called collateralized debt obligations are liquidating more than $5.0 billion of distressed securities from their portfolios over the next few days, market sources said on Tuesday.
One auction occurred late Monday and two other auctions are slated for later Tuesday. The auctions total $1.5 billion for the “TABS 2006-5″ portfolio, which includes collateralized mortgage obligations, other CDOs and home equity ABS securities.
And another auction is being held on Wednesday - the $1.56bn Carina CDO is being liquidated. On Thursday, TABS 2007-7, with $2.3bn under management, will also have its assets auctioned off. This latest round of liquidations comes on the back of three notices to liquidate at the end of December: Tricadia ($500m), Vertical ($1.5bn) and Adams Square Funding ($507m).

Why this sudden rash of accelerations and liquidations? Our money’s on this line from a Moody’s report sent out to CDO noteholders on Tuesday:

If an acceleration were to occur, there is a very good chance that the most senior class would actually warrant an upgrade.
When a CDO triggers an Event of Default, its fate lies with the most-senior noteholders, who decide what to do with it. Hitherto those most senior classes have been very reluctant to liquidate. Look what happened to Adams Square - liquidation proved to be the wrong decision, wiping out every tranche and eating into even the super-senior investors’ positions.

In light of Moody’s comments, that’s clearly no longer seen as the case. In many CDOs, acceleration and liquidation have become viable options recently for the “most senior” noteholders because of who those “most senior” investors are. As we’ve reported before, they aren’t actually noteholders at all, but in many cases, counterparties to swap agreements on the CDO portfolio - known as super-senior positions. Super-seniors then, as swap holders have little compunction in pushing the liquidation button, because it gets them out of a unwanted commitment to failing CDOs.

There are, of course, big variances here, which Moody’s are keen to stress. For some, going into acceleration doesn’t mean imminent liquidation, but rather, the ability to postpone a decision and guarantee the position of the super-seniors. Such is the decision being taken by many super-senior counterparties - the bond insurers. Moody’s:

Monolines, who do not typically apply mark-to-market accounting, may weigh the liquidation and acceleration choices differently. They are more likely to prefer acceleration as a post-EOD remedy whereby losses may be spread out over a longer period of time.
But where does all this acceleration and liquidation talk leave actual noteholders - AAA investors and the like? Moody’s again:

…it is also very likely that all other classes will be downgraded more severely than if acceleration were not to occur.
How severely remains to be seen. Factoring in termination fines in event of liquidation - which impact synthetic CDOs; 75 per cent of the CDO market - losses might be expected all the way up the capital structure, eating right into AAA notes, if not wiping them out.



See Original Article

Even large businesses sometimes need help. Here at Debtsgone we help any business no matter how large to get through a debt crisis and continue trading. Call now for more information.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

The government has taken the long-awaited step of protecting companies in administration from paying business rates on unoccupied properties.

The move reverses the effect of the Trident ruling, where the courts found that council business rates should be treated as a preferential creditors in an administration.

Insolvency experts warned that Trident had put back insolvency rules by 20 years and would cause many retailers to collapse.

The Insolvency Service has been mulling over the impact of Trident since March last year to see whether the decision ran against the government’s rescue culture.

‘We would certainly not want the rescue culture fostered by the new style administration regime to be jeopardised, if that indeed were to be the effect of the judgment,’ it stated at the time.

Since then, the government has decided that Trident does indeed pose a risk to the ‘rescue culture’ and before Christmas announced a partial reversal of the decision.

‘A permanent exemption will remove any potential for decisions about whether to enter administration to be distorted by differences in rates liability,’ says local government minister John Healey. ‘We are committed to the promotion of a culture that provides opportunities for insolvent companies that have viable underlying businesses to be rescued wherever possible.’

President of R3 Patricia Godfrey says the decision couldn’t have been better timed for retailers: ‘With the effects of the credit crunch increasingly likely to be felt in the New Year, this move will help administrators save business and jobs.’

Mercer & Hole business recovery partner Chris Laughton agrees, highlighting the credit crunch as likely to lead to more retail insolvencies. Removing the preferential treatment on business rates for unoccupied properties would save businesses.

‘The decision will help what will be a higher number of retail insolvencies than last year,’ Laughton says.

Before Trident administrators stopped paying business rates on any properties, unoccupied or not, during insolvency proceedings. Trident had tipped the balance too far against insolvency practitioners.


See Original Article

Is your business drowning in debt? Would you like friendly and experienced advice on how to save it? Then call us now. We can help you take back control and focus on the business, not the debt.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Centro Properties has quickly become Australia’s biggest casualty of the global credit crunch. Like others around the world, it is paying the price for a debt-fuelled acquisition spree during an era of cheap financing.

After further big falls in recent days, the property trust’s market price is less than a 10th of its A$10bn ($8.9bn) peak last year. Opportunistic predators, smelling blood, are poring over its books in the hope of picking off its best assets.

Centro is racing against the clock. It has less than five weeks to refinance nearly A$4bn of debt and deliver a plan to win the continued support of its lead banks.

But shareholders should not be expecting a big rebound in the shares even if it manages to find a strategic partner to inject equity. Such a deal would probably dilute existing investors, who may also be asked to stump up fresh cash to pay down debt. In addition, Centro may also have to offload some of its best assets.

The company’s labyrinthine structure – more than 800 properties are either owned, partly owned or managed through two listed funds and scores of unlisted syndicates – will also complicate asset sales.

Centro’s woes have destabilised Australia’s listed property trust sector, with investors fearful others may report bad news. Analysts estimate A$20bn has been wiped off the market value of the country’s top 20 property companies in recent weeks, including market leaders such as Westfield. Investors are right to be taking a more critical look at Centro’s peers.


Siemens’ sound and fury

Sound and fury continue to engulf Siemens. A new bout of hysteria has erupted at the German industrial conglomerate over its annual shareholders’ meeting in two weeks’ time. Shareholders – led by the influential ISS, one of the world’s leading proxy advice providers – are threatening to vote against a motion of approval for former executives headed by Heinrich von Pierer and Klaus Kleinfeld, the past two chief executives.

This is understandable. An investigation into perhaps the largest corporate bribery scandal to hit Germany is ongoing, although both Mr von Pierer and Mr Kleinfeld deny any knowledge or wrongdoing. But it is also pretty pointless given that the vote carries no legal consequences – even more so as both men (and several others whom shareholders are voting against) have now left the company.

Far more significant is how a vote over the current members of both the supervisory and management boards goes. In this case, it is only the DSW, a small German shareholders’ association, that is threatening to vote against sitting members. It wants shareholders to vote against the reappointment of the supervisory board chairman, Gerhard Cromme, as well as that of two fellow directors – Josef Ackermann, the head of Deutsche Bank, and Lord Vallance, the former boss of BT. The three are the only board members seeking re-election at the AGM.

The DSW wants to enable Siemens to make a complete break with the past and rid itself of the last directors present when the scandal took place. All this noise, however, is an unwanted distraction from the most essential task for both the company and its shareholders: reforming it to make it more effective and ensure such a scandal cannot happen again.


Hasty Indian retreat

Two previously untipped Indian companies step in at the last minute to trump a richly priced recommended offer from a well-endowed multinational that already owns nearly 25 per cent of the target. Stranger things have happened. But not much stranger.

The unlikely counter-bidders – Adani and Welspun – duly withdrew their intention of outbidding Eni for the UK’s Burren Energy on Thursday, only hours after Darshan Desai of Euromax Capital, their London-based adviser, had described them as “very serious” about the deal.

It is significant, however, that these days it takes more than a nanosecond to dismiss the possibility of such a bid. Adani, an infrastructure company based in Gujarat, where Burren’s Indian oil activities are found, and Welspun, a supplier of pipes to the energy industry, are established Indian companies. Speculative investors have in the past hijacked the latter stages of recommended deals by buying disruptive stakes in British targets. Well-endowed emerging market predators are increasingly confident about intervening in bid battles that would have been alien territory as recently as a couple of years ago.

Adani/Welspun’s short-lived flirtation with the idea of a bid for Burren demonstrates that newcomers with an imperfect mastery of the British bid process risk looking foolish. But there are plenty of others like them ready to learn from such missteps


See Original Article

If you are struggling to keep your company going because of debts then call now. We can help reduce the monthly repayments and allow you to get back on track.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Sacked workers at a Norfolk double- glazing firm have been warned they are unlikely to get their full redundancy pay, although their pensions are thought to be safe.

Almost 400 workers at Bowater Home Improvements, which trades as Zenith Staybrite, were left stunned after being told the Norwich headquarters and factory, together with 30 sales offices, were closing with immediate effect.

The news was met with sadness and anger by the staff, many of whom had worked for the company for more than 20 years.

Bowater was placed into administration on Monday after its bank withdrew support following a collapse in orders.

Miles Hubbard, regional organiser of the T&G section of Unite, said: “Most people up there had years of service and had no idea what was happening.

“It was a bolt from the blue. There was anger and tears at what had happened. We will be fighting to get what we can in redundancy pay and other money the workers are owed. We are told the pension fund is unaffected but are still waiting for more information about that.”

David Thurgood of Grant Thornton, who was appointed administrator on Monday, said Bowater's debts meant it was unlikely workers would get the money to which they were entitled from the company and recommended workers apply to the government's Insolvency Service.

But Deborah Ives, an employment lawyer with Norwich law firm Birketts, said the collapse of the company meant workers were likely to be left out of pocket, as payments from the Insolvency Service would in most cases not match the pay to which workers were entitled.

Meanwhile, rival double-glazing firm Weatherseal, which bought the Zenith and Staybrite names plus the £9m order book, said it would be business as usual for customers who had placed orders with the company.

Customers are due to be contacted by Weatherseal which will carry out the installation work.

But other companies are offering to honour orders placed by customers with Zenith Staybrite.

Norwich-based Castle Windows is offering to carry out installations for Zenith Staybrite customers, even if they have paid a deposit, meaning households would only have to pay them the balance.

Anglian Windows, the UK's largest home-improvements company, is unaffected by the closure of Bowater and revealed that 2007 had been a record year for the company.

Melanie Russell, of the Anglian Group, said: “It is a great shame that Zenith has had to make this announcement, particularly with their roots here in Norwich.

“Anglian is fortunate to have an excellent heritage with over 40 years trading, and a brand which is trusted and respected by consumers.

“We are the market leaders in the industry with a reputation that has been built on quality products produced by quality people. In 2007 we have just posted an all-time sales record, thanks to the incredible efforts of our entire workforce. However, we are always looking and reviewing all aspects of our business in the light of a changing economic climate.”


See Original Article

If your business is under threat from debts and you would like advice on how to save it then call in the experts. We help more companies stay alive then anyone else. Our aim is simple, to keep you trading. Call one of our experienced team for more information.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Sacked workers at a Norwich double glazing firm were today fighting to receive unpaid wages following the sudden collapse of the business.

Workers Bowater Home Improvements' Norwich headquarters have told of their anger after turning up to work to find they had lost their jobs with immediate affect.

Up to 400 members of staff are facing unemployment after the sudden collapse of the firm, which trades on the Sweetbriar Industrial Estate site as Zenith Staybrite.

Many workers today claimed they were owed money by the firm for work and feared they would never get to see it.

However, union bosses pledged to do all they could to ensure workers received the pay owed them.

Unite T&G's regional industrial organiser Miles Hubbard was on site yesterday to offer support to members and told the Evening News of the “real distress” of the sacked workers, some of whom were reduced to tears.

He said: “Most people found out after seeing it in the press or hearing it by rumour, or by text messages from their mates.

“This clearly didn't happen out of the blue and while we fully accept the company was trying to secure other funding we think there was an obligation on them to give some indication to their workers that there were problems.

“It is just after Christmas and a lot of people are in debt and have spent money that they otherwise would not have spent had they known.

“They were in real distress there and people were in tears. My opinion and the union's position is that that is not the way to treat people - many of whom have given years of service.

“To have the rug pulled from under you after 30 years of loyalty to that company and to have it happen with no warning is awful.”

Mr Hubbard said workers had been told they would not get last week's wages and they were due to go to the factory today to fill out forms to try to reclaim their money from the Government's Insolvency Service.

He added that the union was currently taking advice on the legal position of workers, but if there was legal action to take the union was fully prepared to do so on behalf of members.

The firm was founded in 1969 and is one of the UK's biggest home improvements companies with annual sales of £77million.

However, it has suffered a drastic fall in customer orders, plunging it into major financial difficulties.

The firm's bosses had tried to sell it before Christmas - but no buyer could be found and after the firm's bank withdrew it support, it was yesterday placed into administration.

Hundreds of workers turned up at the factory to find it shut down. Computers had been switched off, equipment packed away and staff were being told to await further instructions.

Shortly after lunchtime, staff at the factory were given the news that they had lost their jobs. However, many still turned up for their late shifts as normal unaware of the news, whilst some told how the first they heard of it was on the Evening News website.

Stephen Bulman, who has worked for Zenith for 34 years, turned up for his 7.30am shift as usual only find all the equipment packed away and computers locked down.

The 53-year-old, from Romany Road, said: “After 34 years of service to the company I was treated like something you find on the bottom of your shoe.”

Fabricator Mike Skinner, 44, from Taverham, said he would be left struggling with mortgage and child maintenance payments after working for nearly 20 years at the firm.

He said: “I'm gutted, I've worked here for 20 years and it's been a big part of my life.

“We knew it'd been coming as we had been constantly doing four day weeks over the last couple of years. But we have just got to get on with our lives and move forward.”

Assembly line worker Melvyn Clarke, 48, from Heartsease, who began work for Zenith at just 20, said: “We have been informed it's going to take up to nine months before we get any redundancy payments. That's a long time.

“People have got mortgages and families, we can't afford to be unemployed at this time of the year.”

The grim news came after administrators from accountants Grant Thornton agreed a sale of the Staybrite and Zenith brands plus half of its sales offices and installation centres to competitor the Weatherseal Group.

But the company's headquarters on the Sweetbriar Industrial Estate and installation offices were closed with immediate effect, with the loss of 390 jobs.

A further 1,000 self-employed canvassers and fitters face an anxious wait to see if they will be offered work by Weatherseal.

David Thurgood of Grant Thornton said: “This sector is characterised by intense competition and a fall off in orders as household incomes have come under pressure: unfortunately a reconstruction outside of insolvency has proven impossible to achieve.”

Weatherseal confirmed today that it intends to restructure the company in order to secure the future of the business and the guarantees that have historically been offered by Zenith Staybrite.

Managing director Ian Blackhurst said: “I would strongly advise any customer that may have a query about an existing order or installation to contact their Zenith Staybrite representative who will be happy to deal with their enquiry as normal.”


See Original Article

If your business is drowning in debt and you would like help getting back in control then call Debtsgone. We can help you take control of the debts so that you can focus on making the most of your business.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

There is likely to be a steady growth in the number of insolvencies in 2008, with more people entering individual voluntary arrangements (IVAs) and more declarations of bankruptcy.

That is the assessment of Debt Help UK, who said the historical growth in IVAs would be boosted by high numbers of people coming to the end of their fixed-term mortgage agreements.

And the fallout from the subprime mortgage crisis in the US is only set to exacerbate personal debt problems.

Iain Wrenshall, director of Debt Help UK, said: "Due to the much talked about credit crunch, a lot of specialist mortgage products previously offered to people under financial stress have been removed from the market place, which would otherwise have allowed them to restructure their finances by consolidating their unsecured debts using the equity in their property."

Some 23 per cent said they were finding their current level of debt unmanageable in a recent survey by uSwitch.

UK consumers are collectively paying £93 billion in interest on loans, credit cards, overdrafts and mortgages with personal debt totalling £1.39 trillion.


See Original Article

If your business is struggling with debt and you would like free advice on how to deal with it then we are here to help. We aim to find the best solution for you, allowing you to get back on track.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Cardiff Chamber of Commerce - which has represented thousands of companies around south Wales for the past 140 years - has gone into liquidation.
It said it was unable to pay off old debts after it was paid money by the former learning and skills council ELWa to which it was not entitled.

Debt was also due to "irregular claims for payment made by former officers," said the assembly government.

The chamber has been trying to pay back the money since 2004.

When it went into liquidation, the chamber, which provided help, support and training to businesses, had 1,400 members.

The British Chambers of Commerce said it would work to ensure businesses in Cardiff will continue to receive the benefits and services that come from being chamber members.

It also said it would try to establish a "chamber presence" in Cardiff as soon as possible.

The Welsh Assembly Government, which took over ELWa, said it "greatly regrets the difficulties" the chamber was facing.

"It is unfortunate that the current management of the chamber have inherited an outstanding debt, incurred in large part following over payments of training services and irregular claims for payment made by former officers of the chamber," it said.

"Whilst we have done all in our power to secure a favourable outcome this has proved impossible owing to the nature and size of the debt and a continued deterioration in their financial position."

It said in recent weeks approaches were made to assembly government funding body Finance Wales for a short-term loan. An offer was made, conditional upon approval and deferment of repayment of the outstanding debt.

"However we have received legal advice that this condition could not be met," the statement added. Deferment of the outstanding debt would be considered in contravention of European state aid law.

'Heavy heart'

In a letter to members, chamber president Paul Gardner said it took the decision to appoint a liquidator with "a very heavy heart".

"The board feels particularly sorry for the chamber staff, none of whom were responsible for these problems, but all of whom have worked tirelessly to deliver an effective solution to the chamber's ills and whose drive over the past two years has ensured the chamber has enjoyed considerable successes with a much improved profile and improved service quality," he said.

A British Chambers of Commerce spokesman said: "We are committed to ensuring that businesses in Cardiff will continue to receive the benefits and services that come from being Chamber members.

"We will be working with the business community of south Wales to ensure that a chamber presence is re-established as soon as possible in Cardiff."

Until then, businesses are being urged to contact chambers of commerce in Newport and Swansea.

David Russ, of the Newport and Gwent Chamber of Commerce, said its staff would help Cardiff's members out with any queries, including helping to process documentation required for exporting goods.

This is required by the Department of Trade and Industry and is carried out by chambers of commerce.



See Original Article

If your business is in the same situation then call in help. We can help get you back in control of your finances and keep trading.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

So 2008 is upon us. But it does not seem a particularly happy new year. Or not, at least, for the markets.

Never mind the soaring oil and gold prices, or the wobble in equity prices. For my money, one of the more alarming trends is in leveraged finance, the corner of the banking world that provides funds for sub-investment grade companies, such as debt-laden buy-out deals.

In the past three years, the leveraged finance world – the business of arranging funding for sub-investment grade companies – has witnessed an explosion in activity. It has become ludicrously cheap and easy for buy-out groups to raise funds.

What has been even more remarkable than the scale of deals is that until now there have been few defaults.

Under some metrics, leveraged corporate defaults were near record lows in 2007, a pattern that has puzzled many rating agencies, bankers and investors given an almost universal assumption in recent years that default rates would soon rise, based on historical models.

With so many analysts having been so wrong-footed, most have gone rather quiet on the subject.

However, the credit research team at Citigroup have stuck their necks out and declared that US leveraged corporate defaults are set to soar from 1.3 per cent last year to 5.5 per cent at the start of 2009, meaning, in effect, that out of 100 leveraged companies, five are expected to default.

This forecast* is much gloomier than the consensus. But it is worth noting. For this Citi team has made some prescient calls in the past. If they are now correct again, it has big implications.

One remarkable detail about the credit crunch is that defaults have hitherto only really affected one part of the debt world – mortgage borrowing.

If the trend now spreads into the corporate world, this could produce a second wave of losses on a scale that potentially rivals subprime losses.

What makes Citi so gloomy? Surprisingly, it is not the economy. Its 5.5 per cent default forecast is based on an assumption that there is no US recession, and it warns that if a recession does occur, the default rate will be much higher.

Instead, what worries Citi is the attitude of big US banks.

Citi analysts point to a structural change in the loan world. In particular, liquidity has been so abundant this decade that lenders have offered loans with very weak legal covenants known as “cov-lite”. That has allowed ailing companies, which would have defaulted in other credit cycles, to stagger on.

The issue at stake has not just been the quantitative price of money but the qualitative factors that are hard to measure in models.

However, as Federal Reserve surveys show, US banks now plan to tighten corporate lending at a pace not seen for a decade.

The crucial point about cov-lite structures, Citi argues, is that they are not watertight for borrowers. On the contrary, Citi thinks lenders can usually find a way to use the fine print to punish weak companies if they really want. That implies that the hitherto low default rate could now surge if banks get tough.

Will they? Frankly, it is hard to know exactly what is happening on a micro level now, since there is a paucity of timely data about the leveraged finance world. In that sense, the pattern has echoes of the subprime world.

But given that Citi has been a keen dancer in the global leveraged finance party – as Chuck Prince, the former chief executive indicated – it is a fair bet that its analysts can read the mood music.

The moral? If 2007 was the year we all learnt to watch obscure mortgage derivatives indices, 2008 looks set to turn us all into experts on the finer details of the corporate default rate.



See Original Article

If your business is being threatened because of debts and you would like help resolving them then call in the experts. We help more companies per year then any of our competitors, so go with the best and call in Debtsgone.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk