Thu, 13 May 2010 | ADMINISTRATION
Housebuilder John Dickie Group has been forced to enter administration after its bank withdrew its lending support.
The Bank of Scotland called in the administrators to the long-established Scottish business despite the resistance of the directors. The administrators have not yet been announced.
It is expected that about 35 jobs will be lost as a result, some being directly employed by John Dickie, and others not.
A company spokesman said: "John Dickie Group acted responsibly throughout the property boom, during which many housebuilders and property developers, fuelled by the bank as lender and investor, demonstrated extraordinary excess."
He continued: "It seems that self interest and the 'too large to fall' principle is dictating who the bank is prepared to continue to support, as Dickie's sensible land-buying policy and modest borrowings do not now appear to merit the bank's support."
The construction company was not given the opportunity to appeal against the Bank of Scotland's decision.
Dickie's borrowing facility was £15m, while its debt stood at £13m, according to reports. Over the past year, the housebuilder had managed to reduce its debt by about a third, and had not breached its loan from the bank.
Founded in 1880, the group recorded a £7.1m loss for the year to June 30, 2008.
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