[Uploaded to BikeBiz.co.uk on 5th October]
On 1st July Derby Cycle Corporation sold Sturmey Archer Ltd. to Lenark Ltd for £30. Two days later Derby Nederlands sold Sturmey Europa BV, the profitable European sales operation that was separate to the Nottingham company, to Sturmey Archer Ltd.
The sale price of Sturmey Europa BV was 3 million gilders, about £800 000.
The 3 million gilders was translated into a loan to Sturmey Archer Ltd. and Derby has yet to be re-paid this loan, hence their interest in attending the creditors meeting and why insolvency practitioners working on their behalf were so keen to take a leading role in pushing for immediate liquidation.
But why was Derby so desperate to sell that it agreed to giving Sturmey Archer Ltd. now owned by Lenark a loan? This was a company that had been left cash flow neutral by Derby, and Lenark Ltd. had no visible means of support.
The thick plottens.