Lots of Rumours Wellgrain has gone bust?
- Thread starter Spashett
- Start date
Thanks for the credit John Elworthy
Who he?
llamedos
New Member
Author of the article. Sorry link didnt work 1st time.
yellow belly
Member
- Location
- south west lincolnshire
if there was a national system for credit insurance on grain the incentive to credit check customer would lead to larger insolvencys than the system was designed for
- Location
- Darlington
Unfortunately that probably wouldn't make any difference in the event of insolvency.
48492
New Member
- Location
- Lincolnshire
http://www.fwi.co.uk/business/wellg...C|Twitter|FarmersWeekly|sf62215631|sf62215631
14 March 2017
Business editor Suzie has done some digging around on forward contracts:
Does the insolvency clause in the AIC Grain/Pulses contract 1/16 release growers from forward commitments to supply Wellgrain (i.e. contracts made before appointment of administrators)?
Paul Rooke, sector head of oilseed and grain at trade body the Agricultural Industries Confederation, told us:
“The insolvency clause in the AIC contract does contain the option for an innocent party to cancel or suspend or refuse to accept or make deliveries. Written notice has to be given to allow this to take effect, as soon as possible after you become aware of the insolvency.
“In practice, it is difficult to place a specific time on that as different parties will become aware of insolvency at different points in time. Suggestions of insolvency do not necessarily equate to knowledge of any official determination/ announcement of insolvency.”
In other words, just because you’ve heard a rumour a company is in administration or financial difficulties, does not mean you can serve notice based on this.
We we continue to push for a clear line on what growers are entitled to do and will update here when we find out.
In particular, the issue of grain stored in Wellgrain facilities is more complex and we are still seeking further advice.
14 March 2017
Business editor Suzie has done some digging around on forward contracts:
Does the insolvency clause in the AIC Grain/Pulses contract 1/16 release growers from forward commitments to supply Wellgrain (i.e. contracts made before appointment of administrators)?
Paul Rooke, sector head of oilseed and grain at trade body the Agricultural Industries Confederation, told us:
“The insolvency clause in the AIC contract does contain the option for an innocent party to cancel or suspend or refuse to accept or make deliveries. Written notice has to be given to allow this to take effect, as soon as possible after you become aware of the insolvency.
“In practice, it is difficult to place a specific time on that as different parties will become aware of insolvency at different points in time. Suggestions of insolvency do not necessarily equate to knowledge of any official determination/ announcement of insolvency.”
In other words, just because you’ve heard a rumour a company is in administration or financial difficulties, does not mean you can serve notice based on this.
We we continue to push for a clear line on what growers are entitled to do and will update here when we find out.
In particular, the issue of grain stored in Wellgrain facilities is more complex and we are still seeking further advice.
llamedos
New Member
what does this mean Grain in storage at Wellgrain may be ‘significantly less’ than it should be
https://www.fginsight.com/news/news...be-significantly-less-than-it-should-be-19455
Pieces_of_Eight
Member
Paper stock isn't satisfied by the physical stock? 
- Location
- West Suffolk
Where is Mr Spinney?
- Location
- norfolk
Caribbean with some of my money the b-----d. Surprised there has been no statement from them though.
With rumours of missing grain and wheat that was sold twice you would have thought they would want to set the record straight, if they can that is.
With rumours of missing grain and wheat that was sold twice you would have thought they would want to set the record straight, if they can that is.
This is all the fault, norfolk'n'good, of the deficiencies embedded in the AIC No 1/16 contract.
18. Passing of Ownership and Risk: Ownership and risk shall remain with the Seller until the goods are delivered to the Buyer.
That's not nearly good enough for the seller.
http://www.nidera-uk.com/global-objects/downloads/aic-contract-1_12.pdf/
Ownership should remain with the seller until buyer's funds in settlement have cleared.
The NFU still fast asleep on the job yet again, apparently.
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- Location
- norfolk
Totally agree, something needs to change so we have more protection.
Having agreed the infamous 1/16 contract on behalf of its members, it's clear that the NFU has a duty to make sure that those now caught up in its deficiencies are fully compensated.
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essex man
Member
- Location
- colchester
I have a forward contract with wellgrain which I would rather not be held to as price has moved up since. what should I do?
Pieces_of_Eight
Member
Sit tight. The end users may be calling on the receivers to honour such contracts
Speak to the NFU or CLA if you're a member.
Speak to the NFU or CLA if you're a member.
If it's substantial as in multiple loads and could have a major impact on your business, as in you'll need a loan to sort it out, think very carefully about liquidating yourself. It's common practice today in all walks of life. Go and see a good accountant.
Honest john
Member
- Location
- Fenland
- Location
- Bedfordshire
Did your grain get collected ? or did you cancel ?