Norton Folgate FG plc (NF), the finance broker
subsidiary of General Capital, has been sold to a company
controlled by its management.
subsidiary of General Capital, has been sold to a company
controlled by its management.
“Despite attempts to reduce staff and other
cost levels to match consistently diminishing turnover levels, NF
has continued to report trading and cash losses,” General Capital’s
board of directors said in a statement.
cost levels to match consistently diminishing turnover levels, NF
has continued to report trading and cash losses,” General Capital’s
board of directors said in a statement.
The board determined that Norton Folgate’s prospects of a
short-term return to profitability were “low” and that it could no
longer afford to finance future losses. Net liabilities at Norton
Folgate were £228,000 (€246,500) at the end of 2008.
The sale comprised the assignment of £125,000 of outstanding
receivables in the NF book, the write-down of the net inter-company
balance owed to General Capital of £34,000, and a cash payment of
£1,555 for the whole of the NF share capital.
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