City Link Administrators held to ransom by IT suppliers and contractors
EY, the administrators of City Link, have been forced to pay out £60,000 to the firm’s IT suppliers and to contractors who held on to valuable parcels and extracted money for their release.
The government is expected to bring in changes to the law in October 2015 to prevent ransom payments like these occurring in insolvency scenarios.
City Link was founded in the 1969 and ran into financial difficulties as a result of legacy loss-making contracts with a number of major customers.
Article © www.dailymail.co.uk