dholmes

I have had my Scoob for nearly nearly 4 years now and still love the car to bits, but 1.5 years ago I saw the pictures of the Lotus M250 and knew this had to be my next car. I put down £1000 deposit. Lotus later confirmed this prototype would go into production and I was asked to hand over another £2000. Hope(d) to get the car this time next year.

Great. What’s the problem?

Well Haydon Daytune of Cambridge, with whom I placed my deposit, have just gone into liquidation and although £1500 of my deposit was forwarded to Lotus, I told I stand no chance of seeing the rest of my money. Some may say easy come, easy go and at least Lotus operate a central waiting list and I have not lost my place. But the worrying thing is the independent liquidator’s report is highly critical of Lotus, their current financial position and their recent attitude to their franchised dealers.

Key points from the report:

- Numerous promises broken by Lotus with regards to the supply of cars and parts.
- Lotus withheld VAT invoices for goods supplied increasing Haydon Daytune’s liability to HM Customs and Excise, thus managing their own cash position at the expense of their franchise holders.
- Gave notice of immediate termination of franchise, required six months not given.
- Haydon have £6 million of outstanding orders with Lotus who will now supply them directly thus depriving Haydon ( and their creditors) of £700,000 of potential profit.


In addition Lotus have failed to meet production targets for the new Elise and VX220. There consultancy business has seen a big downturn in revenue and Lotus have just made 300 people ( 15% of their workforce ) redundant at Hethal and Coventry.

So don’t be surprised, if you have an order at another dealership, and they too fold under the pressure being passed on by Lotus to their dealers and some or all of your deposit disappears into thin air.

Any suggestions on how I can recover my lost money, since NatWest, the main secured creditor looks like the only one getting any money of the outstanding assets?

Regards

Darren

Dave T-S

Sorry to hear this.

You will have to file a Proof of Claim in the prescribed fashion in the liquidation of Daytune to try and recover the £1500 not paid to Lotus. There will be a bar date for claims to be submitted. You should be put on the list of creditors by the liquidator (it would probably have been C&E that filed a petition for the winding up so the local Official Receiver's office would have been appointed).

The government (Vatman, Customs & Excise etc) will rank as first creditor for any dividends paid by the liquidator.

Secured creditors will be next - Natwest etc.

Unsecured creditors will rank last for a dividend when the above two categories are paid.

Do not be surprised if there is only a few pence in the pound - or nothing - to pay to unsecured creditors.....

From experience (and corporate insolvency is my job) - it will take anywhere from six months to two years or more until the unsecured creditors are paid and the estate wound up.

BOB.T

I'm sorry to hear of your loss, I'm not financialy minded so can't offer any advice,sorry!

I have been at the other end of the stick though. I worked in a Hyundai dealership that went into liquidation, the boss rang us at 3 pm and told us to pack up our things, at 4,30 he told us we were to close, we wouldn't have jobs etc, 5 pm we left and haven't been back since! It was as much as a surprise to us as all the customers, many of whom lost their deposits.

I hope you get something sorted and Lotus for that matter!

Bob

Dave T-S

dholmes
I suspected that would be the answer - but it costs you nothing (extra...) to file your Proof of Claim as a creditor and you may as well do so just in case.

Incidentally the word in the industry is that Lotus is ripe for a takeover (although they have turned in a (small) profit the last two years), and Ford would be the likely bidder - for their engineering expertise......

[This message has been edited by Dave T-S (edited 16 April 2001).]

chiark

Sorry to hear about your loss - that truly stinks.

Dave: I thought Lotus was owned by Proton? Or is that irrelevant?

dholmes

Dave T-S,
The liquidator said its very unlikely normal creditors will get a penny. Thanx anyway.

Bob,
Your experience sounds worse than mine and makes me feel a little guilty for having a moan. I think that my only hope, is to make sure I let Lotus know they are no longer paying a franchise a comission and hope they are prepared to offset that against my loss.
I won't hold my breate though.

Dave T-S

Chiark
It's relevant that Proton are up turd creek without a poodle........

BOB.T

Darren, sorry I didn't mean to make you feel guilty! I did quite well out of it really plus I'm in a better job now! I did/do feel bad for the people in your situation though. It was the fault of our dealer principle really which doesn't make it any easier to swallow.

Dave, why would you want a poodle should you be up turd creek?

Bob

Dave T-S

Bob
Some things just cannot be explained mate.....