Finance facility withdrawn by RBS Invoice Finance

Factoring Finance BlogAlbany UK, the collapsed umbrella company is reportedly still seeing some 100 of its former contractors are still waiting for over £500,000 of invoices owed to them, a year after the firms collapse. Some 20 or so other creditors are also thought to be claiming some £4.5m from the firm’s administrator, Carter Backer Winter

Albany put five of its UK companies into administration at the start of the year following RBS Invoice Finance decision to withdraw a £3m factoring facility that it had previously provided to the firms. It is understood this was the sole reason for the firms being put into administration after the invoice finance facility was withdrawn in December 2009.

Mr Alexander, acting as joint administrator from Carter Backer Winter commented that the contractors claims will be looked at “only after IT experts finish examination of Albany UK’s accounts”.

Carter Backer Winter stated that RBSIF has advised them that sufficient debts have been realised to discharge the outstanding liabilities to RBS and the debtor ledgers should be re-assigned to the respective companies shortly and that as such Albany Holding Ltd has no liability to RBS.

Why RBS withdrawn the invoice discounting and/or invoice factoring facilities is unclear but one thing that is clear is that if all the liabilities has been repaid and the debtor ledgers due to be reassigned back to the respective companies, then perhaps it was not an issue with the debtor ledgers?

Either way, at a time when confidence, and indeed trust in the banks is at an all time low, RBS (being owned by the tax payers) will come under even more scrutiny should the bumper bonus culture continue this Christmas, as there are at least 100 contractors waiting to be paid for the actual results they produced without collapsing their businesses, and for whom no Christmas bonus, or even normal pay may surface.

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