Page 3 - Fake Ruby CS

Introduction

In 1960 the Shropshire-based Wrekin
Construction Company Ltd was founded was
a large civil engineering company. By 2007 it

had an annual turnover of in excess of
£100m. However, by 2007 it was struggling
for survival after an expansion plan went

wrong. It had by 2007 incurred trading losses of £7.6m and in March of that
year it was acquired by the Tamar Group Ltd.

Wrekin Group and Wrekin Construction were acquired by the Tamar Group owned by
David Unwin. New board members introduced to Wrekin:

David Unwin (Sr.) (chairman)
David G Unwin (director) and
John Woodcock (joint managing director)

In March 2009 Wrekin Construction went into administration, with nearly 500

jobs losses. It blamed Royal Bank of Scotland (RBS) for its predicament
because the bank would not extend credit to cover its cash-flow problems. RBS
retorted that Wrekin was unsustainable due to "creditor pressure". It owed more

than £20m to about 1,000 creditors, as well as another £20m to its pension fund.
But Wrekin claimed that it had £40m worth of orders up to the beginning of
March 2009 to re-vamp Huddersfield’s Town Centre. That it had an overdraft of
£4.25m and was overdrawn by £2.8m. The company said that:

"All Wrekin Construction needed to keep going in a very
competitive market was £2m to £3m".

Building workers' union Ucatt said a healthy company was failing because
banks would not lend.

"There is a particular problem with the banks bailed out by
government cash not passing it on to construction companies. This
must be the last example of this problem,"

said Alan Ritchie, general secretary of Ucatt.

Wrekin claimed it had signed two contracts worth a total of £50 million on the
day it had been taken into administration.