Documents lodged by liquidators show that the training company Newton Rigg Ltd set up to it claimed at the time to return land-based education provision to the area following the closure of Newton Rigg Collage was placed into voluntary liquidation owning creditors over £120,000 that it has no means to pay.
The records show that Newton Rigg Ltd owed over £70,000 to three sperate companies for landlord fees.
The firm’s biggest creditor is a leading UK law firm the company owes just over £36,000 the company also has Westmorland and Furness Council as a creditor owed £6,110.
Newton Rigg Ltd’s single biggest creditor is a Clifton based company owed almost £50,000
It has also emerged this week that Westmorland and Furness Council has just awarded a grant to the now insolvent Newton Rigg Ltd of up to £135,726 to support rural skills training with the funding awarded by Westmorland and Furness Council from the UK Shared Prosperity Fund awarded to the council by the previous government.
The directors of the company announced in July after a board meeting, they had agreed to place the business into voluntary insolvency.
The five directors as shareholders of the business held a joint liability of just £5 between them in shares at the time the company was placed into insolvency.
With redundancy payments of £4,655 to four employees listed as outstanding creditors of Newton Rigg Ltd also.
Rosalind Hilton, Licensed Insolvency Practitioner at Adcroft Hilton, said: “Unfortunately, sustainable funding for this type of local training organisation is notoriously difficult. Following problems with a major project, the board continued to seek new support and funding but were unable to raise enough to cover the cash flow needed.”
Westmorland and Furness Council has been asked for comment on the Grant award of £135,726 from Goverment funding to the insolvent company.
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