TROUBLED fire engine provider AssetCo is being pursued by one of its banks for repayment of a £1.3m overdraft facility, it said yesterday.
Northern Bank has filed a creditor’s petition but AssetCo said it would not pay it while it was still renegotiating its banking arrangements. “This effectively seeks to improve the bank’s position, and the position of its guarantor, ahead of other banks and creditors,” it said.
City A.M. understands AssetCo was expected to repay the loan from proceeds of its £16m share placement.
One source told City A.M. former chief executive John Shannon remains the overdraft guarantor despite being sacked in March, and AssetCo was trying to force the bank to collect on Shannon’s guarantee rather than repay the loan.
AssetCo’s executive chairman Tudor Davies told City A.M. he did not know who the guarantor was.