RBS subsidiary Lombard has reversed a decision to sell plant
held by insolvent tea producer Lancashire Tea, allowing for the
possible revival of the business by new investors.
The company went into administration on November 11th, after it
was understood to have fallen behind on lease repayments to the
giant UK lessor to the tune of £20,000.
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RBS had withdrawn a factoring facility from the firm in February
of this year, contributing heavily to its cashflow
problem.
After initially deciding to sell the production equipment behind
the unpaid rentals, Lombard has had a change of heart,
participating in a deal with administrators that may see Lancashire
Tea bought by new investors and continue to do business.
RBS was quoted in Crain’s Manchester Business as saying: “We are
absolutely committed to supporting viable businesses and recognise
that sometimes a fresh pair of eyes can find a solution where one
could not be found before.”
The full story behind the Lancashire Tea insolvency will be
printed in the next Issue of Leasing Life.
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By GlobalDataFred Crawley
