Broker sued over Belling affair
Saturday 24 May 1997
The group now in charge of the pension fund, the Law Debenture Trust Corporation, served a writ last week accusing Greig Middleton of negligence in over-valuing a Belling subsidiary which was then sold to the fund. Belling's former auditors, Hereward Philips of North London, are also being sued in the action for up to pounds 5.5m.
The legal claim is the latest attempt by Law Debenture to retrieve more than pounds 6m which was paid out from the fund before Belling called in the receivers. Next week is the fifth anniversary of the company's collapse. Some fund members who retired after the collapse of Belling are receiving less than half their pension entitlements.
Greig Middleton was employed by the pension fund trustees in October 1991 to value Compound Sections, a Belling subsidiary which the trustees intended to sell to the fund to raise badly needed cash for the parent company. Though around half Compound's sales were to Belling, which was then in severe financial difficulties, Greig Middleton said it was worth pounds 5.25m.
The High Court writ alleges Greig Middleton should have realised Compound Sections was so heavily dependent on Belling that the true valuation should have been pounds 2.75m. The claim also says Greig Middleton made did not do enough to establish whether the cooker maker was solvent. According to the claim Belling already owed Compound pounds 503,000 in June 1991.
After receiving the valuation the fund trustees, who included Richard Belling, the company chairman, and the finance director Michael Stewart, raised the purchase price to pounds 5.5m. This amounted to about a quarter of the entire pension fund assets. Compound was later sold by the fund following Belling's collapse for just just pounds 1.4m.
- 1 'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
- 2 West poised to join forces with President Assad in face of Islamic State
- 3 Mother fed her daughter tapeworms to make her skinny for pageant
- 4 Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
- 5 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
West poised to join forces with President Assad in face of Islamic State
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – as hunt begins for killer
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
Bin bag full of cats' heads discovered near Manchester's Curry Mile
iJobs Money & Business
£30000 - £45000 per annum: Harrington Starr: A global investment management fi...
£65000 - £75000 per annum: Harrington Starr: Senior Network Engineer-(CCIE, CC...
£70000 - £80000 per annum: Harrington Starr: Senior Network Analyst - (CCIE, C...
£60000 - £80000 per annum: Harrington Starr: Senior Network Engineer-(Design, ...