Wrong. HMRC are not secured and are no longer preferential. They will get the few pence in the pound same as everyone else. The only preferential creditor these days (who gets paid in full before anyone else) is the Redundancy Payment section. They pay out the staff their statutory redundancy pay and claim it back if there are free assets. I don't think anyone really begrudges this being preferential.
Lots of Rumours Wellgrain has gone bust?
- Thread starter Spashett
- Start date
Wrong. HMRC are not secured and are no longer preferential. They will get the few pence in the pound same as everyone else. The only preferential creditor these days (who gets paid in full before anyone else) is the Redundancy Payment section. They pay out the staff their statutory redundancy pay and claim it back if there are free assets. I don't think anyone really begrudges this being preferential.
Exfarmer
Member
- Location
- Bury St Edmunds
I stand corrected.
SilliamWhale
Member
So where they basically trading grain they didnt have?
Pieces_of_Eight
Member
Possibly, but more likely just trading grain at more than it was worth and operating at too tight a margin (which became unsustainable).
yellow belly
Member
- Location
- south west lincolnshire
other merchants and coops could not get insurance so did not trade with well grain
This has been the case for a couple of years or more
Those who took the extra £ should have seen the risks but if the did not then they should now review their risk management and act on their findings
A £ a tonne higher price takes a long time to pay for a lost load
This has been the case for a couple of years or more
Those who took the extra £ should have seen the risks but if the did not then they should now review their risk management and act on their findings
A £ a tonne higher price takes a long time to pay for a lost load
dirty harry
Member
- Location
- east of east midlands!
Yellow belly, reading you're post above I presume you weren't affected?, -& yes hindsight is a wonderful thing!
I'm afraid they'll probably be more wellgrain's in our time , & for some of us is wasn't just the highest £, but sometimes the rapor you build up over the years, lorries that turn up when they said they would, the best (local) market for certain things & in my case forward selling a year or so ahead (without a crystal ball) - as you rightly say "risk management",
-lucky I didn't / don't/ never will have all my eggs in one basket but still a big pill to swallow, seems the only winners out of it all will be the administrators....!!
I'm afraid they'll probably be more wellgrain's in our time , & for some of us is wasn't just the highest £, but sometimes the rapor you build up over the years, lorries that turn up when they said they would, the best (local) market for certain things & in my case forward selling a year or so ahead (without a crystal ball) - as you rightly say "risk management",
-lucky I didn't / don't/ never will have all my eggs in one basket but still a big pill to swallow, seems the only winners out of it all will be the administrators....!!
Honest john
Member
- Location
- Fenland
I have been involved with this type of insurance before.
Firstly 100%,is never covered.
Secondly the amount of cover is never enough.
Everyone knows how it works & pushes the limits.
Say payment terms are 4 weeks but you don't have to inform the insurance company untill 8 weeks at which point the cover will be reduced or removed.
So a buiness that's struggling for cash flow knows who it has to pay & how far it can push the limits.
Although every deal is different there will be uncovered losses for some even with the businesses that are covered.
This is just how we have found it to be.
Firstly 100%,is never covered.
Secondly the amount of cover is never enough.
Everyone knows how it works & pushes the limits.
Say payment terms are 4 weeks but you don't have to inform the insurance company untill 8 weeks at which point the cover will be reduced or removed.
So a buiness that's struggling for cash flow knows who it has to pay & how far it can push the limits.
Although every deal is different there will be uncovered losses for some even with the businesses that are covered.
This is just how we have found it to be.
yellow belly
Member
- Location
- south west lincolnshire
As I understand the trade could not get credit insurance so did not trade and are not on the creditors list
I generally do not trade with merchants who take grain in principle as I prefer to trade large amounts of grain for movement at one time where the outstanding amount is large
I generally do not trade with merchants who take grain in principle as I prefer to trade large amounts of grain for movement at one time where the outstanding amount is large
dirty harry
Member
- Location
- east of east midlands!
What do you call large? Is that wise "risk management"? Cheers dh
Thats not true. Everyone else just got fed up of dealing with them, or wouldnt risk the balance which wouldnt be covered by insurance. Credit insurance is usually 90% of the value - the company owed picks up the remaining 10% loss. But there was defiantly insurance available.
notice on creditors list Agrii at wetherby are owed 420k , since when have they dabbled in grain ?
Guess wellgrain sold seed and fert from Agrii, then never paid them.
- Location
- Huntingdon
thanks , didn't realise the had a seed fert department thought was just loss on grain trading
I was told today that at the end when the lorry drivers were told that they had to take the loads they had just picked up back to farm. If true somebody somewhere in the organisation deserves a little credit as they could have easily just carried on.
Does it not say which customer anywhere?