Greater understanding with receivers urged

14 March 2002
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14 March 2002

The dispute between Land Rover and the receivers of its financially troubled single-source chassis supplier has highlighted the need for greater understanding between purchasers and receivers.

Ron Robinson, a partner at insolvency practice Begbies Traynor, called for closer ties between R3, the umbrella organisation for receivers in the UK, and CIPS.

He told SM: "We would be happy to help purchasers understand their positions better so that when companies do fail, everyone can be better prepared and work better with receivers to manage things through."

Robinson, who is also chairman of R3's technical committee for looking at ways to improve receivership laws and regulations, warned purchasers to leave suppliers with enough of a margin for financial security.

Last month, Land Rover won a surprise injunction against KPMG, the receivers of its chassis supplier, to make it maintain deliveries. Robinson said he believed the decision would have been overturned by a higher court.

Land Rover and KPMG arranged a deal whereby the car maker took over the debt of UPF-Thompson, the chassis supplier, to the banks.

SMmar2002

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