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Decon directors call for new liquidator
00:00 03 Sep 1998
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by Graham Ridout
The directors of failed tunnel machinery manufacturer Decon Engineering of Bridgwater, Somerset, are making a surprise move to get rid of the liquidator appointed by Leeds Crown Court to investigate the firm's collapse.
If the move succeeds, the present liquidator Anthony Sleight of chartered accountant Smith & Williamson would be replaced by the directors' own nomination - Trevor Frid of Ernst & Young.
A special meeting of Decon's creditors, including Balfour Beatty and Aoki, is scheduled for two weeks time at which they will be asked to approve the move.
Two Decon directors are also directors of sister company Delta Civil Engineering and its parent Delta Civil Engineering Group (Holdings). The two companies claim that they are collectively owed more than £339,000 by Decon, greater than the £254,000 owed to the rest of the non-preferred creditors.
At a previous meeting, angry creditors rejected a motion to allow Decon to enter a company voluntary arrangement whereby they would only pay 12p in the pound of the money owed. The creditors are holding out for an improved offer and claim that guarantees in Decon's accounts said that losses would be underwritten by the parent company.
The directors of failed tunnel machinery manufacturer Decon Engineering of Bridgwater, Somerset, are making a surprise move to get rid of the liquidator appointed by Leeds Crown Court to investigate the firm's collapse.
If the move succeeds, the present liquidator Anthony Sleight of chartered accountant Smith & Williamson would be replaced by the directors' own nomination - Trevor Frid of Ernst & Young.
A special meeting of Decon's creditors, including Balfour Beatty and Aoki, is scheduled for two weeks time at which they will be asked to approve the move.
Two Decon directors are also directors of sister company Delta Civil Engineering and its parent Delta Civil Engineering Group (Holdings). The two companies claim that they are collectively owed more than £339,000 by Decon, greater than the £254,000 owed to the rest of the non-preferred creditors.
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At a previous meeting, angry creditors rejected a motion to allow Decon to enter a company voluntary arrangement whereby they would only pay 12p in the pound of the money owed. The creditors are holding out for an improved offer and claim that guarantees in Decon's accounts said that losses would be underwritten by the parent company.
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