Paper mills hit by Aspenlink failure
Wednesday, November 20, 2019
Paper converting and merchanting business Aspenlink owed creditors nearly £2.7m when it suddenly went bust last month.
The business had offices in St Albans and a converting facility in Essex.
According to the report from administrators Paul Cooper and Paul Appleton of David Rubin & Partners, who were appointed joint administrators on 8 October, Aspenlink had a total estimated deficiency of nearly £2.9m.
Unsurprisingly, paper manufacturers are among the biggest unsecured creditors.
Stora Enso is owed a total of £499,105; UPM is owed £479,712; Metsä Board is owed £209,190; Palm Paper £144,987; and Sappi £125,602.
Conance, a Barnet-based company that provides trade finance for UK-based importers, is owed £361,308.
The figures could change due to retention of title and the reclaiming of stocks.
One paper industry source commented: “The whole thing happened so quickly. He [Aspenlink CEO Jeremy Spring] had been paying his bills and had an established trading history. Then something changed that killed his cashflow. We are still waiting to find out the real story.”
The source added: “We are hoping the administrators will go after the money that is owed to Aspenlink.”
The company’s assets were subject to fixed and floating charges. Aspenlink had book debts of just under £2m according to the report, which were expected to realise £199,728.
A number of printers, publishers and merchants are among the smaller creditors on the list.
Aspenlink had been trading since 2001.
The administrators could not be reached for comment at the time of writing.