Train giant Bombardier being sued for alleged unpaid bills to supplier

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Saturday, February 23, 2013
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Derby Telegraph

DERBY train-maker Bombardier is being sued for more than £780,000 for allegedly failing to pay for goods and services provided by a supplier.

A claim has been lodged at the High Court against the Litchurch Lane firm over alleged unpaid invoices relating to Primarius UK, a train seat manufacturer, which was based in Corby, Northamptonshire.

  1. Bombardier

But Bombardier has said it has filed a "robust defence" in response to the action.

In 2011, Primarius shut its Corby site with the loss of 36 jobs. Before going into administration, Primarius had a "factoring agreement" with Redd Factors, which is based in Berkshire.

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It meant that the company sold its debt to Redd Factors, which as a result, is pursuing the claim against Bombardier.

According to the claim form that has been submitted to the High Court, Bombardier worked with Primarius on four contracts – Sub-surface Line (SSL), Porterbrook, Angel and London East Railway.

It states that Bombardier agreed to provide materials to Primarius to help it complete the orders, in exchange for a reduction in the work cost.

But in July, 2011, it is alleged that Bombardier stopped paying Primarius, which in turn suspended deliveries and later went into administration. Redd Factors is now suing Bombardier for £426,952 of unpaid invoices.

Bombardier is also being sued by Redd over an alleged breach of a "control agreement" between the two firms. The agreement saw Bombardier take over the running of Primarius' stores in Corby.

It is claimed that Bombardier agreed to compensate Primarius "for any additional costs incurred by Primarius as a result of Bombardier's control of the stores", including materials and labour.

Redd Factors claims that Bombardier owes £357,414.

A spokesman for Bombardier said: "We dispute the terms of the claim and we have filed a robust defence."

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