Today I learned that a member of the Sevco High Command was saved from himself last year by his bank.
He approached the financial institution and asked for an extension of his borrowing facilities.
However, it wasn’t his own business, but for the basket of assets at Ibrox.
Despite having banked with them for many years they refused to extend his line of credit.
He was surprised at this as he thought his reputation with the lending organisation as an established businessman would be enough for them.
Despite this, the financiers refused, in part, because they knew he was bankrolling a loss-making business without a credit line from a bank…
The Blue Room chap then took his custom elsewhere and Sevco got some more liquidity, at least for a while.
He moved two accounts to another bank and they were more accommodating but at a premium rate.
It is clear from the last set of audited accounts that the only thing preventing an insolvency event at Sevco are ongoing loans from Directors.
The details can be seen here in Note 17 (page 46) “analysis of loans”.
You will see that £6.275m of loans are required to be repaid in December 2017.
I do hope that this member of the Sevco High Command will have an understanding chat with his new banker before Santa arrives.