The Liverpool Echo says that the Dusanj family are turning a personal loan they made to the company during the Honeycombe takeover into new shares, thus releasing over £2.5 million. It’s not enough to save the business, but it might just convince the bank:
That means rather than expecting a return on their loan the family is injecting £2.56m of its money in a demonstration of their commitment to its future.
Sudarghara said: “We put everything we had into the deal last year and we are now willing to convert the loan into shares
“It is a new injection of cash which shows that the family is backing the business.”
An interesting historical footnote in all this is that beginning in 1932, during the Great Depression, Higson’s, which then operated out of the Robert Cain Brewery, was supported for eighteen months by the maltster Paul’s. No doubt Paul’s was thinking for the long term and didn’t want to see a valuable customer go under for the sake of a short-term difficulty, but it was a risk nonetheless. It would be gratifying to see similar foresight among Bank of Scotland managers.