Norfolk-based sports car company says winding-up order was based on a contractual dispute that had already been resolved amicably

An application to wind up Group Lotus plc has been dismissed by the High Court today.

As reported by Autocar this morning, the name of Group Lotus – which comprises Lotus Cars, Lotus Motorsport and Lotus Engineering – appeared on the Companies Court Winding Up list to be heard at the High Court.

Such cases are often the result of a creditor or group of creditors seeking to have a company's assets liquidated as a result of failure to pay debts.

However, according to a statement issued by Group Lotus this afternoon, earlier this year the company was in a contractual dispute which was subsequently resolved amicably.

The High Court process means that the matter still has to be completed before a judge before proceedings can be formally disposed of. Today the claim was dismissed with no order as to costs.

 

 

 

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29

18 March 2013

Lotus has been heading for the cliff edge for years I expect it will be a relief for many that the end has finally come.

maxecat

18 March 2013

Maxecat wrote:

I expect it will be a relief for many that the end has finally come.

Who, and why?


18 March 2013

bomb wrote:

Maxecat wrote:

I expect it will be a relief for many that the end has finally come.

Who, and why?

Having worked for at least two employers that went bust after a long lingering decline I believe it is an awful experience for the employees, and in this case potential car purchasers, that it is a huge relief when finally the end comes.

Just like Lotus the companies had various management changes, ownership changes, new plans, etc, but apart from senior management walking away with huge payouts the ordinary employees just suffer over several years with no pay increases and an utterly depressing situation.

Working for a company in decline like Lotus is the employment version of living on death row. 

maxecat

18 March 2013

Maxecat wrote:

Working for a company in decline like Lotus is the employment version of living on death row. 

Have to agree there. Its an aspect which sentimental casual observers rarely seem to consider.

18 March 2013

[quote]

Having worked for at least two employers that went bust after a long lingering decline I believe it is an awful experience for the employees, and in this case potential car purchasers, that it is a huge relief when finally the end comes.

[quote]

Having been through it with a certain Korean car company I simply didn't have the same feelings. It was not a relief for me. I had to leave a job I really enjoyed, move away from a city that I loved and say goodbye to many close friends. I never want to go through that experience again. I hope Lotus sees it through. I suspect the end is nigh, however and to me that will also not be a relief.

18 March 2013

 ….businesses, existing customers?

 

Err, do you read articles or just the headlines? Where does it say in the article they are being wound up, liquidated or that they have fallen off of a cliff? Nowhere, I guess with their multi billion dollar investment from Proton and 2 newish models the Exige and Evora S and with 2 in the pipeline Proton will hang on at least until the models have had a chance to return investment. Factor in the suspension and handling work they do for other companies, plus a loyal band of customers keeping their parts department busy. I would think they are safe for now.

 I would guess you are a victim of poor journalism, or stupidity! This sounds like they were trying to stretch their payment window and someone got jumpy (it's happening a lot at the mo) what with so many other businesses going bust. They have already settled. It is people like you scaremongering who keep us in recession!

18 March 2013

Mike in Bath wrote:

 ….businesses, existing customers?

 

Err, do you read articles or just the headlines? Where does it say in the article they are being wound up, liquidated or that they have fallen off of a cliff? Nowhere, I guess with their multi billion dollar investment from Proton and 2 newish models the Exige and Evora S and with 2 in the pipeline Proton will hang on at least until the models have had a chance to return investment. Factor in the suspension and handling work they do for other companies, plus a loyal band of customers keeping their parts department busy. I would think they are safe for now.

 I would guess you are a victim of poor journalism, or stupidity! This sounds like they were trying to stretch their payment window and someone got jumpy (it's happening a lot at the mo) what with so many other businesses going bust. They have already settled. It is people like you scaremongering who keep us in recession!

The original article published by Autocar this morning, since modified by Autocar, stated that Lotus was subject to a listed winding up hearing in court.

When a company has creditors long overdue for payment with the debtor failing to come up with any convincing plan to repay those debts it is usual for the creditor(s) to apply to a court to wind up the company so they can obtain any assets currently owned by the debtor company.

Having been an employee of a company in a similar situation what often happens is that the debtor settles a debt of one or more claiments only to find other debtors take over the winding up order. Once it becomes known a company has failed to pay its contractual debts it will find most suppliers of goods and services will demand payment up front. That usually kills of any business. It is similar to a run on a bank, once they fail to meet a financial commitment everyone wants there money out at the same time, which is impossible to meet. 

 

maxecat

18 March 2013

What a shame! Would liked to have seen the Elite, Esprit and Eterne concept designs that were shown back in 2010 go into production. They could have turned around the company's fortunes.

18 March 2013

I guess this is what happens with under investment and an idiot at the helm. Samething happend to TVR.

I'm surprised they didn't sell it, even for a tenner!

18 March 2013

Sounds like a disgruntled supplier or employee - Mr. Bahar, perhaps?

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