Magna deny unpaid bill claims

The firm which allegedly defaulted on a £400,000 bill, causing an Eastwood firm to go into administration have this week denied the claims.

Beamlight administrator Nigel Hamilton-Smith told the Advertiser this week that he could not move forward until Magna paid its outstanding bills.

“The company’s major client defaulted on a payment and that default meant that the company was not in a position to make the wage payments last week,” he said

“The consequence of that is 190 of the employees were suspended pending coming to a settlement with this major customer. As of today I have no settlement with the customer but we are still in talks.”

However a spokesman for Magna denied the claims and said: “Magna Seating (UK) Limited and its affiliated companies has complied with its strict legal and contractual obligations to Beamlight Automotive Seating Limited.

“The claim that Magna is responsible for the entry of Beamlight into administration because it has defaulted on a monthly payment which was due is untrue.”

But Mr Hamilton-Smith had warned that Magna could face legal action if they did not pay up.

Mr Hamilton-Smith said he had no idea why the firm had defaulted on the payment, but warned that if things were not resolved there could be a ‘legal process’ to go through.

“In the event that there’s no negotiated settlement it is probable that there will have to be a legal process to settle the matter,” he told the Advertiser.

“They (Magna) have not given me any reason whatsoever why they have withheld payment, and are dealing only through their solicitor.”