Lots of Rumours Wellgrain has gone bust?

Honest john

Member
Location
Fenland
15 million = 3750 loads of grain at £140 ton.

How the *** can you lose that much on an 80 million turn over ?

How can RBS be out of pocket 10.5 million
On invoice financing ?
 

Goffer

Member
Mixed Farmer
Location
Yorkshire
Only 90 load a day over a 2 month period , knowing one mill locally to us takes 1200-1600 ton depend on which day off the week it wouldn't take long !
 

Condi

Member
15 million = 3750 loads of grain at £140 ton.

How the *** can you lose that much on an 80 million turn over ?

How can RBS be out of pocket 10.5 million
On invoice financing ?
Rbs arnt 10 mil down, most of it was secured so they will get the majority back. Remember these are creditors, there will be debtors too - ie mills which have bought wheat but not yet paid. Payment terms can be up to 90 days so nothing unusual about having a large amount outstanding on both sides. They've not 'lost' 15m...
 

spikeislander

Member
Location
bedfordshire
12 million on a asset based loan from rbs where was the asset base? They had rented offices and stores? The only assets where farmer's wheat in store surely rbs are at fault for lending an unsecured loan?
 

Honest john

Member
Location
Fenland
The report says in excess of 4 million losses for the bank.

So there must be assets to realise, and or grain to still be payed, some of which is in dispute.

Very sad for all involved.
 

Condi

Member
They lent the money secured against outstanding invoices. Look up debt factoring for an explanation of how it works.

As for the comment above about Bernard Matthews being the mill not paying, that's not true. The BM creditors list was out months ago.
 

spikeislander

Member
Location
bedfordshire
I must confess to not being up to speed with lending/trading etc just seemed a risky move by the bank.
So what happens to the people who made these decisions? The top of wellgrain must have known how things were but kept taking wheat? I can't help thinking somebody has done better than the farmers out of this. (I don't mean the liquidators). Do they get off the hook? ( With a nice Ferrari?) Allegedly.
 

Honest john

Member
Location
Fenland
The Debt is with RBS invoice finance.

So they will pay WellGrain on raising of invoice say 80%.

So they will have payed out to WellGrain 80% while still awaiting payments from Wellgrains customers 100%.

Some of which are in dispute.

For sure folk are in no hurry paying Receivers.
 

Condi

Member
So what happens to the people who made these decisions? The top of wellgrain must have known how things were but kept taking wheat? I can't help thinking somebody has done better than the farmers out of this. (I don't mean the liquidators). Do they get off the hook? ( With a nice Ferrari?) Allegedly.

Driftwell investments, the parent company, hasn't gone bust. Obviously if there was anything criminal then appropriate charges should be bought, and part of the receivers job is to publish why the business went bust. If there is nothing criminal then the people involved have no liability.

There is no suggestion anything untoward went on and I'm not suggesting there was.

The main issues seems to be a single customer owing then 3m. Having said that, they've been unable to buy from the trade for months and months and always had to pay up on farm to buy it. If they're paying more on farm and selling at the same price as everyone else then no surprise they had trouble.
 
The Debt is with RBS invoice finance.

So they will pay WellGrain on raising of invoice say 80%.

So they will have payed out to WellGrain 80% while still awaiting payments from Wellgrains customers 100%.

Some of which are in dispute.

For sure folk are in no hurry paying Receivers.

But invoice finance advances get clawed back at 90 days(or occasionally 120 days). [emoji937][emoji378]⚰️
 

SFI - What % were you taking out of production?

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Red Tractor drops launch of green farming scheme amid anger from farmers

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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