Funder facing ‘uncertainty’ over £8.1m owed to it by stricken train painting firm

No jobs were lost when Paintbox Transportation Services collapsed into administration before Christmas, according to documents seen by TheBusinessDesk.com – but that could all change at the end of this month.

Meanwhile, funder BGF – a creditor of the firm- could miss out on the £8.1m owed to it as the picture remains “uncertain”, says the company overseeing the stricken train painting business.

Administrators from Interpath have revealed that they have continued to trade Paintbox Transportation Services throughout December and January after securing assurances from its main customers, Alstom, that it had contracts to complete.

This agreement has meant a temporary reprieve for around 60 staff at Paintbox Transportation Services – plus a trading surplus of £292,000 which will be used to pay off creditors.

However, Alstom itself is under threat of closing its Litchurch Lane train making factory after it warned that it has no work pipeline past the end of this month.

Chris Pole, managing director at Interpath Advisory, said in December: “We’d like to extend thanks to Alstom, as well as the company’s employees and wider stakeholders for their support which is allowing us to trade the business while we assess options.”

Paintbox Transportation Services has two secured creditors; it owes BGF £8.1m and IGF £100,000 for its invoice discounting service. Administrators say that IGF Business Credit will receive what is owed to it. However, any payment to BGF is “uncertain”, as is the £1.1m owed to unsecured creditors.

Paintbox Transportation Services has historically been profitable. Accounts for 2022 showed revenues of £7.4m and a profit of £1m.