Yes and no
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The company’s accounts show pre-tax losses of £330,601 in 2018, £329,175 in 2019 and £258,804 in 2020 (pre-audit). A number of significant engineering contract disputes, all of which arose in the years prior to the current board taking over in October 2020, have crystallised in the last few days. The claims against the company are compelling and are in excess of £250,000 in total. There is no prospect of meeting these liabilities, even over an extended period.
As a result the balance sheet is now insolvent to the extent of £350,000 approximately, adjusting for intangible assets also. In such circumstances the company cannot legally continue to trade.
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It does feel like they got their sums wrong in making these calculations. If they only owed £350k, but had £500k of rolling stock able to be sold, then they did have a prospect of meeting the liabilities. I wonder if they didn't realise that the plc owned the rolling stock (i.e. they thought it was 'sheltered' within the charity), so got a shock when it was discovered that the receivers decided that they were allowed to sell it.
Alternatively, another way of reading this is that we (railforums) were incorrect when we read that the debt owed was £350k - it says here that the balance sheet was insolvent to the extent of £350k, but it is quite possible that that was equal to say £1M of debt, and £650k of assets, which were sold below their book value for £500k.
It certainly sounds like it is more complex than anyone would be able to deduce from public statements