§ Rev. Ian Paisleyasked the Secretary of State for Northern Ireland if Her Majesty's Government will forgo their status as preferential creditor of De Lorean Cars Ltd. in order to help the small business creditors who might otherwise be put out of business.
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§ Mr. Adam Butler[pursuant to his reply, 15 March 1982, c. 30]: As the holder of a fixed charge on property of De Lorean Motor Cars Ltd. the Department of Commerce for Northern Ireland is entitled to repayment of the loans thereby secured before any other creditor. The Department of Commerce has already made it clear to a group of creditors that while the Government have great sympathy for the plight of unsecured creditors it is not prepared to forego its priority. The best hope for all concerned with the company, including the unsecured creditors, lies in a successful outcome to the receivership.
§ Rev. Ian Paisleyasked the Secretary of State for Northern Ireland if Her Majesty's Government will review their policy towards the De Lorean venture by recognising that, assessed on initial capital alone, it should be regarded as constituting virtually a nationalised industry; and if they will either wind up the company and settle all creditors or accept a continued liability on the same social, political and economic grounds as elsewhere in the United Kingdom.
§ Mr. Adam Butler[pursuant to his reply, 15 March 1982, c. 30]: De Lorean Motor Cars Ltd. is a private company in which all of the ordinary share capital is owned by the De Lorean Motor Company. The Northern Ireland Development Agency subscribed for redeemable preference shares in the company but the rights attaching to these shares do not afford the agency a major or controlling interest. At the request of its directors, who had resolved to cease trading, receivers-managers were appointed by the Department of Commerce on 19 February and are investigating the possibilities of selling the business. The Government have made it clear that they do not accetp liability in respect of the company's debts.