Call to reinstate bridge fund as suppliers to Caparo face struggle…
An urgent plea has been made to reinstate bridge funding to help small West Midlands businesses hit hardest by the administration of engineering and steel giant Caparo.
John Kelly, deputy president of the Institute of Chartered Accountants in the region, said the problems at Caparo put hundreds of local businesses under severe pressure and he called for the reinstatement of bridge funding “as a matter of urgency” to prevent many of those businesses going to the wall.
“Caparo are major suppliers to the motor industry and there is a real concern that many of the smaller suppliers they are dealing with don’t have the resources to survive a bad debt or a loss of turnover,” Mr Kelly said.
“What’s urgently needed now is a fund similar to that implemented when MG Rover failed – there are several million pounds in the bank from those funds which are still to be utilised and could provide a lifeline for those smaller suppliers across the West Midlands.”
Mr Kelly said the economy was currently so delicately balanced that if businesses didn’t begin to receive help in the very short term they could begin to fail.
“If this news is followed by even the smallest of interest rate rises, it will have a profound effect on those firms, and therefore it is imperative that some of bridge funding is in place.”
In the wake of the MG Rover failure, bridge funding of up to £500,000 was made available to provide additional short term finance to those companies adversely affected by the situation.
Mr Kelly is one of a number of speakers at an insolvency conference on Wednesday November 11, being organised by the ICAEW together with business recovery specialists Begbies Traynor and Birmingham-based chartered surveyors Eddisons. The event aims to provide a better understanding of insolvency procedures.
He added: “We would encourage accountants in particular to attend this conference so they can gain a better understanding of insolvency procedures and then can, in turn, provide best advice to their clients.” The conference is being held at Edgbaston Cricket Ground from 5pm.
Other expert panellists at the event include Nigel Price, Rachel Hull, Dan French, a partner at legal practice Gateley, and Iain Stout, a regional director of Barclays Business Support in Birmingham.
Places at the event cost £25. Bookings can be made via Linda Conway on 0121 270 8942 or email@example.com.
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