The injunction means UPF-Thompson, the sole supplier of chassis for Land Rover’s Discovery model must maintain deliveries despite mounting debts, the FT reported today.
Following the ruling, Bob Dover, chairman of Land Rover called for a shake-up of UK insolvency laws and said the government should adopt similar insolvency laws to America’s Chapter 11 – the bankruptcy protection used by Enron.
Dover said: ‘We’ve got to sort the law out on this. There is a place for receivership, but we cannot be expected to take on our suppliers’ liabilities.’
Chapter 11 allows US listed companies to file for bankruptcy protection, which allows management to restructure the business and negotiate with creditors.
Big Five firm KPMG was demanding £35m goodwill payment from Land Rover so UPF-Thompson could continue deliveries. KPMG argued that UPF could treat Land Rover, its dependent customer, as an asset.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children