Wrightbus to pay back Invest NI, but not others

Wrigthbus' performance has declined since 2017 because of a fall in turnover and profit margin

Invest NI is likely to be paid back in full by Wrightbus, but that will not be the case for other creditors owed money.

Administrator Deloitte has published a progress report on the bus maker.

It says Invest NI is owed £2.5m which is likely to be paid back in full. Bank of Ireland, however, is owed £52.5m and will only get some of that back.

The report includes company accounts showing a loss before tax of £19.5m for the eight months to August 2019.

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The County Antrim-based group's performance has declined since 2017 because of a fall in turnover and profit margin.

The administrator's report says the decline is due to a number of factors, including a slowdown in the UK bus market, unforeseen inefficiencies, consolidating its Northern Ireland operations into a single facility and loss making contracts in South East Asia.

Deloitte Consulting was engaged in May to try and cut costs, but its turnaround plan required significant funding.

That meant the group decided in June that selling the business was the best way forward.

But the group needed money to keep it ticking over, which is why Invest NI and Bank of Ireland each invested a further £2.5m in the business, a total of £5m.

After 17 weeks, although there were interested parties, a buyer could not be found so the directors decided to appoint Deloitte as administrator in September.

Jo Bamford, an English industrialist, who is the son of JCB chairman Lord Bamford, agreed to buy Wrightbus in October.

Some assets were not included in the sale - for example three freehold properties - the Old Head Office site, the Old Logistics building and the Church building on Fenaghy Road in Ballymena.

The logistics building and church are currently occupied and a licence to occupy the Old Head Office site has been granted to Bamford Bus Company.

No properties have been sold to date.

The report says the company is owed £9.2m from customers.