Tiphook costs to be pounds 40m

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The Independent Online
THE COST of restructuring Tiphook, the troubled container and transport leasing company, is about to be disclosed as an astonishing pounds 40m, writes David Hellier.

Tiphook is expected to publish the figure in a lengthy circular to shareholders early this week.

The circular, which will include separate documentation for US bondholders, some of whom have threatened to sue the company, will also give details of the company's sale of its container division to Transamerica of the United States. The price will be around pounds 750m.

Last year Tiphook reported losses of pounds 21.8m. But these came after a change in accounting policies which cost pounds 77.3m. This year's results will include a large provision for the fall in value of the company's employee share scheme.

Advisers to the company said the pounds 40m costs, considered large even by City standards, would include some charge for lease terminations, charges related to the discontinuation of certain trading activities and redundancy costs, as well as professional fees.