Steel trader and finance provider Westford Trade Services (UK) has failed to repay some of its borrowings after Covid-19 impacted its ability to recover certain trade debts.
Westford has a "contractual agreement" in place with one lender to defer repayment of £3.2mn ($4.3mn) until the end of this year, it said in its results to 31 December. It also has outstanding debt of £1.8mn for which there is no agreement in place, but the lender has verbally agreed to defer repayment, according to Westford chief executive Hande Elmener.
Westford has financing from a number of institutions, according to charges registered in Companies House. White Oak, which is in talks to refinance UK steel group Liberty, is one of the lenders.
Westford had creditors of £14.48mn and debtors of £15.2mn in the 12 months to December, according to its balance sheet. The company has £7.5mn in bank borrowings due within one year, and owes £6.5mn to group undertakings, up from £389,950 in the previous year. The firm said it received an interest-free loan from another group company, with £2.2mn due on 31 December, and another from another group company, with £4.2mn outstanding at the end of December. It also made purchases from another group company, to which it owed £150,193.
Westford has drawn scrutiny in recent years for its ties to Liberty House Group. Wyelands Bank, owned by Liberty head Sanjeev Gupta, previously financed insured and uninsured receivables for Westford, according to documents from the bank obtained by Argus. Liberty also secured financing from now-collapsed Greensill Capital against invoices for trades to Westford, according to documentation from Credit Suisse.
