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A bank has backed a collapsed private finance initiative firm’s pursuit of a trust for £56m in compensation, describing the legal action as a “last resort”.
Lloyds Banking Group, which administrators say is owed tens of millions of pounds, says Whittington Health Trust has a contractual obligation to pay Whittington Facilities Limited.
It is claimed the firm collapsed into administration after the trust withheld service payments following a fire in January 2018.
The trust argues it was right to do so and that the costs to ensure safety are more than what it is owed.
A Lloyds spokesman said the action is in the interest of “all creditors, including the bank”.
He added: “We are supportive of the steps being taken, recognising it is an action of last resort, with the administrators having previously sought to agree a consensual settlement.
“As that was not successful, the administrators have no option other than to progress this contractual claim via the courts.”
Lloyds is owed £41.1m by WFL, according to a recent administrators’ report. About £43m is owed to unsecured creditors, of which £41.3m is meant for Lloyds subsidiary Uberior Investments Limited.
The next hearing for the case is expected in the autumn.
A prequel to a merger?
News that University Hospitals of Leicester, Kettering General Hospital Foundation Trust and Northampton General Hospital Trust are to share the same chair has prompted speculation that even further collaboration could be on the cards.
A full-blown merger is perhaps a bit hasty, but it is understood the next step could be the appointment of a shared CEO across the three trusts, something that has become more frequent across the English NHS. Indeed, Angela Hillery is chief executive of neighbouring Leicestershire Partnership and Northamptonshire Healthcare Trusts.
Considering John MacDonald – current chair of UHL – is to take on the new joint role, Richard Mitchell – current CEO of UHL – could be a likely candidate, however, the trusts did not confirm this when asked by HSJ.
Meanwhile, Mr MacDonald – who is stepping down from his role as chair of Derbyshire Integrated Care Board – will need to bring some stability to Kettering and Northampton, which have both seen senior leadership churn over the last several months.
Alongside this, UHL – which was embroiled in a financial scandal that attracted the attention of the National Audit Office – has ongoing operational challenges and is not out of the woods yet and needs a chair who has strong oversight.
Also on hsj.co.uk today
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