TX4 suspensions update

We received word from London over the weekend that the London Cab Company have been contacting owners of TX4’s, some up to 2 years old, and telling the Owners their cabs are unfit for use.

It came as no surprise to hear Engineers were in Manchester yesterday, Monday 12. At least one owner was told his cab is no longer fit to work. He was advised to park it up.

He has refused to do so. Who can blame him, he is paying £135 a week finance for this vehicle. He cannot afford to pay another £180 a week to hire a cab to keep on working until this mess is cleared up.

Is the driver committing an offence ? The answer must be no. The council have not issued notice of suspension. At its last inspection, the same council found it fit for purpose.

Please bear this in mind if LTC contact you. Do not let them inspect your vehicle, they have no idea how many are affected, why put yourself out of work.

Why have LTC not notified Manchester Licensing of these inspections ? The answer must be they are trying to play down the size of the problem. There are two reasons for this.

1. They still hope to get a mug to bail them out.

2. They do not want anymore drivers joining the Class Action started by the Big London trade group, for compensation. Some owners have started giving back the vehicles to Black Horse Finance and walking away.


60 Suspension and revocation of vehicle licences

(2) Where a district council suspend, revoke or refuse to renew any licence under this
section they shall give to the proprietor of the vehicle notice of the grounds on which
the licence has been suspended or revoked or on which they have refused to renew the
licence within fourteen days of such suspension, revocation or refusal.

LTI were in the High Court

LTI were in the High Court on Tuesday.
PWC appointed administrators, as we know. Notice issued in London Gazette, registered office changed.

This usually means it is domino for the company concerned, stories of a rescue seem highly unlikely.

Date:

6 November 2012
Issue Number:

60320
Page number:

21270
Publication Date: Tuesday, 6 November 2012
Notice Code: 2410
Appointment of Administrators
In the High Court of Justice (Chancery Division)
Companies Court No 8128 of 2012
LTI LIMITED
(t/a The London Taxi Company)
(Company Number 00382553)
Nature of Business: Assembly trading business, manufacture of motor vehicles.
Registered Office of Company: Holyhead Road, Coventry, CV5 8JJ.
Principal Trading Address: Holyhead Road, Coventry, CV5 8JJ
Date of Appointment: 30 October 2012.

LTI press release

Manganese Bronze Holdings plc, LTI Limited, MBH Services Limited and MBH Property Services Limited – in administration
30th October 2012

Matthew Hammond, Tony Barrell, Ian Green and Mike Jervis were appointed joint administrators of Manganese Bronze Holdings plc, LTI Limited, MBH Services Limited and MBH Property Services Limited (“the Group”) on 30 October 2012.

The Group is the manufacturer and retailer of the iconic London taxi, sold in the UK and abroad. It provides a retail and maintenance service through its wholly-owned dealerships throughout the UK, under the trading name The London Taxi Company. It has a turnover of £75m and 277 employees in total including three overseas employees. 175 employees are based at the Group’s head office and manufacturing site located in Coventry with the remaining employees spread across dealerships in London, Manchester, Leeds, Edinburgh, Glasgow and Coventry.
The culmination of several issues led to the Group being placed into administration. The Group has been making losses for four years due to a combination of poor UK sales, supply chain issues, and high warranty costs. These issues were further impacted by the discovery of material accounting errors in the first half of 2012 which increased the extent of the Group’s losses. More recently, the discovery of a steering fault resulted in the recall of circa 400 vehicles and a suspension of sales which had an immediate detrimental impact on the Group’s cash flows.
Following a suspension of its shares earlier this month, the Group has been unable to secure sufficient funding. Without financial support to overcome these operational issues, the Group came to the conclusion that it could not continue to trade as a going concern. As a result the directors placed the Group into administration. LTI Limited is concentrating all its resources on fixing the steering fault. The administrators have entered into discussions with key stakeholders to secure funding to support the business through this period whilst the administrators seek a sale of the business and assets as a going concern
Matthew Hammond, joint administrator and PwC partner, said:
"Our immediate priority is to secure funding in order to explore the options rapidly developed by the Management team and key suppliers to resolve the steering box recall. We are reviewing the existing financial position to develop a range of options to rescue the business or alternatively dispose of it to an investor that can continue the business to a secure future for the iconic London Black Cab. We have immediately commenced discussions with an encouraging list of UK and International interested parties and would encourage any further interested parties to contact us as a matter of urgency."

Cross St Garage (M+O) closed today.

Cross St Garage (M+O) closed today. Big trouble now. Few parts are available. If your cab breaks down, get another track quick.