Norton Folgate FG plc (NF), the finance broker 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.

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.

Jason T Hesse 

Reproduced with the kind permission of Leasing Life
 
Leasing Life Issue: 186 - March 09
Published for the web: March 17 09 9:47
www.leasinglife.co.uk