Monday, January 23, 2006


Local newspaper reports on 'Lone Star'

"Review" (St. Albans, Hertfordshire) March 2, 1985 by Sue Nowak

Debts of nearly £2.5m were owed by Hatfield toy gun company LONE STAR PRODUCTS when it crashed last year. There is only enough to pay £249,000 owed to preferential creditors like the Inland Revenue, the Official Receiver's office announced this week. None of the 350 creditors turned up at the meeting called in Watford on Wednesday. It was officially adjourned for seven days, but is "really just a formality", said a Department of Trade spokesman.

"Since the company was in receivership before it went into liquidation, the creditors presumably realised there wasn't any money," she said. Among the unsecured creditors who receive nothing is Alpha Zinc Ltd., the company which initiated the winding-up order against Lone Star Products, last year. They say they are owed £13,600.

Next week the official receiver is likely to be named liquidator and will then pay over the £249,000. Total liabilities are £2,257,000. "The bank, as debenture holders, will receive little of the money it is owed," said a spokesman. Meanwhile the famous name lives on as Lone Star Toys. A West German company, Wicke GmbH and Co., bought the assets last year and retained about 80 of the 200 staff. "Orders are so good that more staff may be taken on mid-year producing die cast toys including guns and tractors," said a spokesman for the new owners.


"Review" (St. Albans, Hertfordshire) July 9, 1987 by Chris Phillips

Civil servants and accountants handling the affairs of Hatfield company LONE STAR PRODUCTS, which collapsed three years ago, have again come under fire from the company's former boss, Stan Perrin.

At the time of the failure, the Official Receiver's Office at Watford - called in to examine the company's books - said debts amounted to nearly £2.5m and there was only enough money left, some £249,000, to pay preferential creditors like the Inland Revenue. Mr. Perrin said the debt was closer to £1.5m and claimed that the sale of Lone Star to a West German company would leave some cash to pay off more than 300 other creditors. Sure enough, these creditors have now been told that £155,000 is available for distribution or there would have been hadn't the Official Receiver seen fit to deduct £27,888 for the cost of sorting out the case.

"We agree that it sounds a lot, but there were many more creditors involved than is usual," said a spokeswoman at the Department of Trade and Industry, which oversees the Official Receiver's duties. She explained that stationery, travelling and telephone bills came to £1,497. The balance was accounted for by "audit duty", based on a sliding scale of realised assets and Value Added Tax. This payment has been passed on to the D.T.I. So much for the civil servants. Two firms of accountants enlisted by the Official Receiver want paying for their services. One Binder Hamlyn, took their cut before the figure of £155,000 was disclosed. But neither they nor Cork Gully, who are making their deduction from the £127,000 currently remaining, will discuss their fees.

"The whole affair leaves me with the feeling that creditors are being given roughshod treatment," said Mr. Perrin, now running another Hatfield toy company [Eaglet Industries]. Mr. Perrin wants to know what has happened to the interest earned on the £155,000-plus?
And he also claims that £70,000 was raised from the sale of Lone Star's holding company, Die Casting Machine Tools Ltd., - a matter which the Official Receiver's office and the two accountancy firms say they have no knowledge of. Creditors wanting details of the final pay-out should contact Cork Gully's Northampton office. The assets of Lone Star Products were acquired by West German company Wicke GmbH and the company is now trading as Lone Star Toys at Hatfield.

Associated Web-logs:

Comments: Post a Comment

<< Home

This page is powered by Blogger. Isn't yours?