Anyone know whats gone on there with a company Called Vectra ? Ive just quickly been reading an article in this weeks CM saying they are in Dire Straits after a buyout which involved Cornish lending Vectra £330,000 !
I thought it was the other way round when you buy somone out not the owner/sell paying the buyer to buyer it ?
Anyone know how this works then ?
It seems the guy a Mr Mike Mejkes ( dont know if thats correct name) apparently has been involved in similar takeovers and then resigning as director days later only for the company to quickly decline.
Obviously sum sort of scam…
For clarity, Vectra is bascially a holding company, it doesn’t really trade itself.
That type of takeover is perfectly legitimate (Macfarlane Transport, for example, was acquired by its then managers in the original MBO, using something similar) it’s a means of obtaining funding, which as a loan is eventually paid back. However when you do it you need to ensure there are sufficient funds remaining with the firm that it can keep trading for the next 12 months.
Dom Perry
Commercial Motor
Dom Perry:
For clarity, Vectra is bascially a holding company, it doesn’t really trade itself.
That type of takeover is perfectly legitimate (Macfarlane Transport, for example, was acquired by its then managers in the original MBO, using something similar) it’s a means of obtaining funding, which as a loan is eventually paid back. However when you do it you need to ensure there are sufficient funds remaining with the firm that it can keep trading for the next 12 months.
Dom Perry
Commercial Motor
So am I right in thinking that Mejyes was already a shareholder of Cornish to obtain the loan to pay back to the holding company ? If not and this guy previously had nowt to do with Cornish I fail to see why the sellers have to pay Vectra money. Shouldnt it be Vectra poaying Cornish money for its shares ?
I fail to see how can you call it legit ? McFarlane went bust owing a fortune out, majority of it lent to its parent company who had the same directors, simply a big scam and this is another.
Meyjes was a director of Cornish and used this proceedure to acquire the share capital of Cornish through Vectra. Vectra would then pay the owner of Cornish (in this case a man called Ron Sutherland) for the shares/value of the firm. The loan to Vectra, plus refinancing, enables this transaction to happen.
I call it legitimate because it’s legal. It’s not an ideal way to acquire a company and is normally not allowed to happen unless you sign those stringent declarations saying the firm has enough assets to continue trading for 12 months.
Because a firm goes bust afterwards doesn’t make it a scam, although you might ask a few serious questions as to why.
Sorry to sound as though I’m taking sides here, but libel lawyers make me very nervous with stuff like this. Yes, I know, I know, I’m probably being overly cautious but having spent about 90 minutes getting the story cleared in the first place I’m unwilling to undo all that hard work with a chance comment on a forum.
Cheers
Dom Perry
Thanks for that DOM!
So its merely coincidence that when a takeover of a company occurs using the described method and then goes bust owing thousands out including the money that its “lent” the buyer to enable the takeover plus taking down and destroying the livelihoods of small hauliers ? Thats Just concidence is it…
Yeh right 