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Breaking News:

 

attachicon.gifGelpack_Logo.png

 

We are hearing some disturbing reports that Gelpack Hereford told all of their staff to go home at 2pm today and to return for a meeting on Tuesday.

 

Further updates to follow.

 

Remember where you heard it first...

Oh no I hope they are not closing, this is bad news for Hereford if they are.

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Breaking News:

 

attachicon.gifGelpack_Logo.png

 

We are hearing some disturbing reports that Gelpack Hereford told all of their staff to go home at 2pm today and to return for a meeting on Tuesday.

 

Further updates to follow.

 

Remember where you heard it first...

 

Geez! Your quick off the mark with this, there is nothing on the HT or any of the radio stations yet, lets hope its just something technical and nothing more.

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From HT 30 May 2017

 

packaging company which has been producing in Hereford for 55 years has received a £10 million loan, allowing them to serve more customers over the coming years.

 

Gelpack Excelsior, which is based off Grandstand Road, has agreed a new funding deal with Bibby Financial Services (BFS), as part of a business loan secured on its assets.

 

The business produces films, bags, liners and sacks for a range of industry sectors, including food and beverage, medical and pharmaceutical, bedding and furniture manufacturing. It is one of the largest privately owned polyethylene packaging manufacturers

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Shocking news for the employees and Herefordshire.  

 

I am surprised that commenters are expressing shock that HT have not picked up on this report - remember they knock off early and are not back in until Friday morning then pick their threads up from sites like HV and Facebook

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Terrible news.  My first proper job was at Gelpack back in 1989, I met the then future Mrs Clarkester there. And have made many, many good friends there, several of whom still work there.

I hope that the news isn't as bad as it looks at the moment.

Very sad...

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This doesn't sound good.

 

They have a charge against the company here.

 

In the last ten years Bibby Financial Services Limited has deliberately destroyed thousands of good businesses - don't become one of them! Whatever you do please read the stories of former clients of Bibby Financial Services before you sign an enormous contract in some cafe or car park. After you have read them, please tell yourself: 'Beware of Bibby Financial Services'!

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From reading the comments, the one thing that stands out is the "£10 million pound loan secured on assets" - sounds to me like BFS have called in the debt, Gelpack can't repay it, so BFS have started proceedings to recover the money. This BFS lot sound a lot like a dodgy bunch of loan sharks to me.....hopefully the staff will get a redundancy pay out and not be left to struggle.

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From reading the comments, the one thing that stands out is the "£10 million pound loan secured on assets" - sounds to me like BFS have called in the debt, Gelpack can't repay it, so BFS have started proceedings to recover the money. This BFS lot sound a lot like a dodgy bunch of loan sharks to me.....hopefully the staff will get a redundancy pay out and not be left to struggle.

 

A redundancy payout is pretty poor in mosts cases, especially if you have only been working there for 6 months.

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@Colin - very true, very unlikely to receive anything with less than 12 months service. Anyone over that is usually paid at a rate of 1.5 times the weekly wage multiplied by the years of service, so some long term employees may see a reasonable pay out. Unfortunately any pay out will be taken into account when they go to see about any form of benefit help - essentially, they will have to use their redundancy pay to live off until they either find another job, or it runs out.

 

Reading comments on FB this morning, they are closing all 3 sites......

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There were 12 charges registered against Gelpack Industrial Ltd. 11 of these charges have been satisfied since 1989. The only one outstanding is with Bibby Financial Services Ltd (as security trustee). Seems odd that this charge was created in May and the financial problems emerged 2/3 months later.
 

What is a security trustee?
Paul Sutton Property Investment & Funds

A security trustee is a person or corporate entity which holds security for the benefit of others. The security involved may comprise a charge over property, a debenture over the assets and undertaking of a company, a bank account charge or a combination of other types of security for the performance of obligations.

Security trustees are often used in structures such as secured loan notes, where the benefit of the security is held on behalf of the loan note holders as a group. A security trustee is usually (but not always) an independent entity which is regulated by the Financial Conduct Authority or equivalent financial services regulator.

Here are some of the main reasons for using a security trustee as part of a structure:

If the beneficiaries of the security are too numerous for them all to appear on the relevant register (such as the Land Registry in the case of a charge over property).

If the composition of the group of beneficiaries is likely to change over time (such as in the case of loan note holders) – appointing a security trustee in this situation avoids the inconvenience and cost of transferring the underlying security each time a new beneficiary is added or an existing beneficiary transfers its interest.
   
In order to demonstrate independence from the parties associated with the debtor, originator of the debt obligation, the chargor or the subject matter of the security. In other words, if something goes wrong and the security needs to be enforced, the security trustee would act impartially in taking the necessary steps to enforce the security and distribute the proceeds of enforcement to those entitled.
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