Simclar Ayrshire debts are £24m says Administrator Kroll

A report by administrators Kroll into the collapse of two Simclar Ayrshire electronics factories in Irvine and Kilwinning suggests the company is unable to pay debts totalling £24m. Simclar Group closed its Ayrshire facilities in January with the loss of 420 jobs and the sacked workers have since protested at the Simclar closures.

Kroll said they had a duty to "consider the conduct" of Simclar directors. Simclar founder Sam Russell said the report had been "misinterpreted" and actual debts were around the £6m mark.
The report said that following payments to secured creditors of some £84,000, and the £250,000 cost of the administration process, Simclar (Ayrshire) was unable to pay the remaining debts owed.

Ms Irene Oldfather MSP has criticised Simclar Group claiming they transferred assets to their Dunfermline headquarters.
"Given the sale and transfer of assets in the weeks before closure, it is perhaps not surprising that there are insufficient funds to pay the creditors. If this is legal, then the law must be changed. It is difficult to comprehend how a company who only two years ago were recording million pounds worth of profits can now be in £24m in the red," she said.

A spokeswoman for Kroll, the administrators for Simclar (Ayrshire), said: "We are aware of the concerns that Cunninghame South Labour MSP Irene Oldfather has raised and would be happy to help address these concerns with her directly as necessary."

Mr Sam Russell founder of Simclar is said to have offered to meet Ms Oldfather to discuss the situation.
He stated "The £23.9m referred to in the Kroll report and described as being due to unsecured creditors, while legally correct, does not paint an entirely true picture.
"Almost £17m of this figure refers to future rental for the premises which we occupied in Irvine.
The longevity and cost of the lease was one of the major contributing factors to our decision to place the Ayrshire business in administration. I wouldn't seek to downplay the effect of the administration on our workforce or suppliers but taking the future lease liabilities out of the equation means that unsecured liabilities amount to some £6m. This is still a significant figure and is to be hugely regretted, but it is light years away from £24m."

In early February the Scottish deputy enterprise minister Allan Wilson asked the Department of Trade and Industry to investigate the closure of the Ayrshire factories.
He said there were "unanswered questions" and wanted an investigation into events "including the transfer of assets and contracts". His call for an investigation followed a meeting with the administrator, unions and local MSPs and MPs in Irvine.