Collapsed Leicestershire car parts firm Schlegel owes £15m
A buyer is still being sought for an engineering firm which owes its creditors almost £15 million.
Schlegel Automotive Europe, of Bardon, near Coalville, went into administration at the beginning of October after a major customer, believed to be Nissan, withdrew all its orders in the final week of September.
Since then, it has not been possible to secure a buyer for the company, which manufactures car sealing systems at its base in Beveridge Lane.
As a result of the administration the company has made 255 redundancies, out of a total of 336 jobs.
Cheap Van Insurance For 17,18 & 19 Year Old Drivers - Call Insure365 01782 898188, Free Legal Protection Cover Included valued at £25.00!
Terms: 1 Voucher Per Customer
Contact: 01782 898188
Valid until: Monday, June 24 2013
It has now emerged, in a report released by administrators Springfields of Leicester, that Schlegel owed the bank, employees and suppliers £14.8 million when it went into administration.
Schlegel owes the State Bank of India, a secured creditor, £4.7 million.
Administrator Situl Raithatha from Springfields, said the amount the firm will end up paying back depends on whether a buyer can be found.
The report lists just under 200 different companies which Schlegel owes money to.
Mr Raithatha said: "It is really too early to say how much companies are likely to get back.
"It's dependant on whether we can achieve the sale of the business and if it is not sold as a going concern what the realisation of the physical assets of the plant and the equipment is.
"I'm disappointed that we have not been able to sell the business, but that's the stage we are at and we are still looking."
The report says the major customer, which accounted for around 70 per cent of the turnover, finally pulled out in October after raising concerns over Schlegel's financial stability. The administrator's report shows Schlegel made a net profit after tax in the year to June 7, 2012 of £710,000 and turned over £28.7 million. The previous year's profit was £652,000 while turnover was £26.3 million.
In 2008, the State Bank of India loaned £6 million to Global Finvest, part of Indian conglomerate the Ruia Group, to fund a takeover of Schlegel. The Leicestershire firm, founded in 1952, later became directly owned by Ruia.
At the end of November, Mr Raithatha said it was anticipated that even if a buyer was not found, production at Schlegel would continue at least into the new year.