Bifab Limited - £35 million secret convertible loan

Mr Paterson made this Rhyddid Gwybodaeth request to Scottish Ministers

This request has been closed to new correspondence from the public body. Contact us if you think it ought be re-opened.

Roedd y cais yn llwyddiannus.

Dear Scottish Ministers,

In November 2017, Scottish Ministers granted a £15 million loan facility to Burntisland Fabrications Limited (BiFab) - company registered number SC213282. This loan facility was subsequently secretly increased to £35 million, fully drawn down and converted in to class B shares in BiFab Limited during 2018.

In respect of this £35 million investment please provide Scottish Minister's assessment of the value of the investment:
(A) Immediately before the conversion of the £35 million loan to shares.
(B) Immediately after the conversion of the £35 million loan to shares.
(C) The latest available valuation of the shareholding (please give date of valuation).

I request this information in the public interest of efficient and effective use of £35 million of public funds.

Please acknowledge receipt of my request

Yours faithfully,

Mr Paterson

Gadawodd Mr Paterson anodiad ()

Audit Scotland, September 2018
"In November 2017, the Scottish Government entered into an agreement to offer a commercial loan facility of £15 million to Burntisland Fabrications Limited (BiFab), a fabricator of oil, gas and offshore wind structures, to support the completion of two key contracts. On 17 April 2018, the former Cabinet Secretary for the Economy, Jobs and Fair Work informed the Scottish Parliament that the Government had provided BiFab with an expanded commercial loan facility as a result of increasing costs associated with the completion of contracts for the Beatrice Offshore Wind Farm. Included in the agreement with BiFab is a provision for the loan to be converted to an equity stake, not exceeding a 38 per cent shareholding in BiFab. A further £10 million loan was also made available to BiFab in April 2018 to support business restructuring following the completion of the contracts. The profile of BiFaB's drawdown of the borrowing facility is not in the public domain as the Scottish Government has maintained that the company needs to ensure commercial confidentiality whilst it is in the process of bidding for new contracts. It is important that the Scottish Government provides full transparency on the loans that it has provided to BiFab as soon as it has completed the current procurement process. The
Scottish Government plans to monitor options for when it will sell its shareholding but no decision has been made about when this will take place. "

Gadawodd Mr Paterson anodiad ()

Question S5W-18837: Dean Lockhart, Mid Scotland and Fife, Scottish Conservative and Unionist Party, Date Lodged: 17/09/2018

To ask the Scottish Government whether any of the £15 million loan provided to Burntisland Fabrications (BiFab) has been repaid and, if so, how much.

Answered by Derek Mackay (26/09/2018):
The Scottish Government expanded the loan facility made available to BiFab to allow the completion of the BOWL contract and convert that loan to a minority equity stake in the new company. That amount will be determined by the extent to which the loan is used towards the completion of the BOWL contract. The shareholding will not exceed 38%.

In addition we will make a commercial loan available to support DF Barnes during this transition.

The Scottish Government sought independent legal and financial advice throughout this process, the details of which are commercially confidential.

Current Status: Answered by Derek Mackay on 26/09/2018

Gadawodd Mr Paterson anodiad ()

The loan is not £15 million but is £35 million and has been converted to shares. See page 23 of 37 in link below:

https://beta.companieshouse.gov.uk/compa...

Gadawodd Mr Paterson anodiad ()

The £35 million loan is already listed as a £35 million equity investment on Scottish Government's response to FOI/18/02172

https://beta.gov.scot/binaries/content/d...

Scottish Ministers

Dear Mr Paterson,

 

FOISA Acknowledgment of request

 

Thank you for your request dated 30 September 2018 under the Freedom of
Information (Scotland) Act 2002 (FOISA) for regarding the loan facility
provided to Burntisland Fabrications Limited (BiFab).

 

We received your request on 1 October 2018 and will respond in accordance
with FOISA by 29 October 2018.

 

If you have any queries, please contact me quoting case number
FoI/18/02771.

 

Regards

 

David Stevenson

 

 

 

dangos adrannau a ddyfynnir

 

Gadawodd Mr Paterson anodiad ()

24. Events after the end of the reporting period

On 13 April 2018 the Company issued a further 4 ordinary £1 shares at par.Loans made to the Company totalling £35million were converted to 109,128 ordinary £1 B shares between 17 April 2018 and 21 June 2018.The Company has obtained a Restructuring Loan Facility of £10million bearing interest at 18% per annum with no fixed terms of repayment prior to the final repayment date of 2026. As at the date of the Auditor's report, zero has been drawn upon under the Restructuring Loan Facility.

Dear Scottish Ministers,

Message for David Stevenson

Reminder: Response Due - FoI/18/02771.

This is a reminder that a response to my FOI request is due. The legal backstop date for a response is 26 October 2018.

Yours faithfully,

Mr Paterson

Scottish Ministers

Dear Sir,
Thank you for your e-mail below.
I have checked the system and we have logged the FOI request on 01/10/18. The response will be due by 29/10/18.

Yours sincerely
Scottish Government
Central Enquiry Unit
Tel: 0300 244 4000 
      

      
 Please consider the environment before printing this e-mail

dangos adrannau a ddyfynnir

Dear Scottish Ministers,

Message for David Stevenson

Response - FoI/18/02771.

Please apply the response to this FOI. It has been incorrectly applied to FOI/18/02772.

Yours faithfully,

Mr Paterson

Gadawodd Mr Paterson anodiad ()

Response appears to have been applied to wrong FOI request:

https://www.whatdotheyknow.com/request/b...

Dear Scottish Ministers,

Message for Kersti Berge, Director of Energy & Climate Change

Request for internal review – FOI/18/2771

The response to my FOI request is unsatisfactory. I request full disclosure in the public interest of transparency and accountability. I highlight the following matters:

1. False use of section 30(c) and section 33(1)(b) to prevent public and political scrutiny

The response given in the Annex is spurious and appears unrelated to my FOI request. It is my assertion that section 30(c) and section 33(1)(b) are being falsely used in the Annex to prevent public and political scrutiny.

2. Information about the loan / equity investment is already in the public domain:

A. Extract from Burntisland Fabrications, Financial Statements, 31 December 2017: “Significant financial investment that has been received in the form of convertible debt, of which £35 million has been drawn down to the date of the Auditor's Report. Upon receipt of such funds, the amounts were immediately converted from debt to the issuance of Class B shares.”

B. Extract from Audit Scotland report, September 2018: "In November 2017, the Scottish Government entered into an agreement to offer a commercial loan facility of £15 million to Burntisland Fabrications Limited (BiFab), a fabricator of oil, gas and offshore wind structures, to support the completion of two key contracts. On 17 April 2018, the former Cabinet Secretary for the Economy, Jobs and Fair Work informed the Scottish Parliament that the Government had provided BiFab with an expanded commercial loan facility as a result of increasing costs associated with the completion of contracts for the Beatrice Offshore Wind Farm. Included in the agreement with BiFab is a provision for the loan to be converted to an equity stake, not exceeding a 38 per cent shareholding in BiFab.”

C. The £35 million loan is already listed as a £35 million equity investment in Scottish Government's response to FOI/18/02172.

3. Public interest argument for full disclosure: Maintaining and increasing public confidence in public institutions - such as the government and parliament.

Subjecting public money to scrutiny builds public confidence in public institutions such as governments and parliaments. Scrutiny - by parliament and by the general public - reduces both the possibility and public perception of corruption or other wrong-doing in government decision-making. It encourages both the efficient and effective use of public resources and supports collective learning by experience. It helps protect both public ministers and private contractors through processes which are seen to be above board. Conversely, secrecy with public funds damages and in the long-term undermines public confidence in public institutions.

In support of the public interest argument for disclosure, I wish to draw your attention to criticism of and calls for greater transparency of these loan arrangements made by Audit Scotland, “Reporting of government accounts should be 'more transparent'” dated 27 September 2018. Please note the explicit reference to Bifab:

http://www.audit-scotland.gov.uk/news/re...

4. There is a £35 million opportunity cost to this investment decision.

£35 million of public funds could have been put towards alternative purposes that may have provided greater public utility. This option is no longer available.

Please acknowledge receipt of my request for internal review.

Yours faithfully,

Mr Paterson

Dear Scottish Ministers,

Please ensure that the Scottish Government's responses to the FOI requests listed below are published promptly on the Scottish Government's website:

Scottish Government FOI references - prefixed "18/" followed by
2771
2772
2868
2869

Thank you.

Yours faithfully,

Mr Paterson

Scottish Ministers

Dear Mr Paterson,

 

Thank you for your email dated 29 October 2018, highlighting a potential
error with the reference numbers associated your two FoI requests relating
to Burntisland Fabrications Limited.

 

According to our records we have your requests logged against the
following reference numbers:

 

FOI/18/02771

 

In November 2017, Scottish Ministers granted a £15 million loan facility
to Burntisland Fabrications Limited (BiFab) - company registered number
SC213282.  This loan facility was subsequently secretly increased to £35
million, fully drawn down and converted in to class B shares in BiFab
Limited during 2018.

 

In respect of this £35 million investment please provide Scottish
Minister's assessment of the value of the investment:

(A) Immediately before the conversion of the £35 million loan to shares.

(B) Immediately after the conversion of the £35 million loan to shares.

(C) The latest available valuation of the shareholding (please give date
of valuation).

 

I request this information in the public interest of efficient and
effective use of £35 million of public funds.

 

FOI/18/02772

 

Please provide all information held about the £10 million restructuring
loan facility (with no fixed repayment prior to 2026) granted to
Burntisland Fabrications Limited (Bifab) in 2018.  This should include,
but is not limited to (A) all internal memorandums and emails and (B) the
loan agreement.

 

 

Following careful consideration of both requests we were unable to provide
the information you have requested, because of exemptions under - section
30(c) (effective conduct of public affairs), and section 33(1)(b)
(commercial interests) - under the Freedom Of Information (Scotland) Act
2002.

 

I hope this clarifies the position.

 

Regards

 

David Stevenson

 

 

dangos adrannau a ddyfynnir

Dear Scottish Ministers,

Message for David Stevenson

I refer to your response on 30 October 2018. Unfortunately, my message has been misunderstood.

The response to 2771 has been uploaded against 2772 on the "WhatDoTheyKnow" website.

Please correctly upload response 2771 against request 2771.

This is important if the matter reaches the Scottish Information Commissioner so that they can see the request / response flow.

Yours faithfully,

Mr Paterson

Scottish Ministers

1 Atodiad

Reissued

David

dangos adrannau a ddyfynnir

Scottish Ministers

Dear Mr Paterson,

I have reissued both FOI/18/02271 ( [FOI #522672 email] ) and FOI/18/02772 ([email address] ) under the correct email addresses.

Hopefully this resolves the misunderstanding regarding the reference numbers and will allow the Scottish Information Commissioner to flow the email traffic on the matter.

Regards

David Stevenson

dangos adrannau a ddyfynnir

Gadawodd Mr Paterson anodiad ()

Scottish Information Commissioner: "Where the authority considers that the commercial interests of a third party would (or would be likely to) be harmed, it must make this clear, and must indicate the nature of those commercial interests and how these interests would, or would be likely to, be prejudiced substantially."

Dear Scottish Ministers,

Message for Kersti Berge, Director of Energy & Climate Change

FOI/18/2771

Reminder

This is a reminder. Please acknowledge receipt of my request for an internal review dated 29 October 2018.

Yours faithfully,

Mr Paterson

Dear Scottish Ministers,

Message for Kersti Berge, Director of Energy & Climate Change

FOI/18/2771: £35 million convertible loan

This is a reminder that a response to my request for internal review is due. I believe that the previously claimed reasons for withholding information were spurious. I look forward to receiving a high quality response shortly.

Yours faithfully,

Mr Paterson

Scottish Ministers

Morning Mr Paterson

As per my acknowledgement email of the 6 November the response to your review request FOI/18/02771 is due on Monday 26 November.

I am still on track to meet this deadline but will get in touch with you if this position changes for any unforeseeable reasons.

Kind regards

Anna

dangos adrannau a ddyfynnir

Dear Scottish Ministers,

Message for Anna Kynaston, Unit Head Low Carbon

Thank you for your reply and for keeping me informed of progress. It is important to mention that the date of Monday 26 November represents the backstop and not the due date. Scottish Ministers (and those responding of their behalf) have a duty to respond promptly - i.e. the response is already due.

Yours faithfully,

Mr Paterson

Dear Scottish Ministers,

Message for Anna Kynaston, Unit Head Low Carbon

FOI/18/2771: £35 million convertible loan

I would like to draw you attention to SSE plc Interim Results for the six months to 30 September 2018, published 14 November 2018 – specifically page 70

http://sse.com/media/540210/SSE_Interims...

Page 70: “Other – The Group {SSE plc} ………. disposed of its 15% shareholding in Burntisland Fabrication Limited (‘BIFAB’) for consideration of £1. The sale of shareholding in BIFAB resulted in an exceptional charge of £16.5m, including £10.0m of losses previously recognised in the statement of other comprehensive income.”

Please do not tell me in your response that valuations of BiFab shares are confidential.

Yours faithfully,

Mr Paterson

Gadawodd Mr Paterson anodiad ()

Beatrice Offshore Windfarm Ltd (BOWL) owners
SSE (40%)
Copenhagen Infrastructure Partners (CIP) (35%)
Red Rock Power Limited (25%)

Scottish Ministers

1 Atodiad

Dear Mr Paterson

Please find attached a response to your FOI review request of 29 October 2018 relating FoI/18/2771.

Kind regards

Anna Kynaston

dangos adrannau a ddyfynnir

Gadawodd Mr Paterson anodiad ()

Appeal to the Scottish Information Commissioner: 26 November 2018

Dear Scottish Ministers,

Message for Anna Kynaston, Unit Head Low Carbon

FOI/18/2771: £35 million convertible loan

Thank you for your response. I classify your response as unsatisfactory and have referred the matter to the Scottish Information Commissioner.

Yours faithfully,

Mr Paterson

Dear Scottish Ministers,

Message for Anna Kynaston

FOI:18/02771

I refer to the statement in your response: "The nature of the information requested is commercially sensitive and the release of the information by the Scottish Government could hinder the ability of the company to act in a commercial manner."

Please see the link to the SIC website which provides guidance:

http://www.itspublicknowledge.info/Law/F...

As you will see "could hinder" is not an available exemption under FOISA.

I hope the link is of assistance.

Yours faithfully,

Mr Paterson

Gadawodd Mr Paterson anodiad ()

Questions remain: What were the drivers for converting a loan to BiFab worth £35 million into 109,128 ordinary £1 B shares with an estimated total market value of £1 ?

Gadawodd Mr Paterson anodiad ()

Public Audit Post-legislative Scrutiny Committee, 29 November 2018

Arguments put forward by Permanent Secretary (PS) & Chief Financial Officer (CFO) of the Scottish Government should be subject to challenge:

PS: “Numerous loans and investments”
PS: The loans are “early on” investments
CFO: Disclosure would create “risk to investment”
CFO: Government must act in “same way as commercial investor”
CFO: “significant number of loans per year”
CFO: disclosure would impact “the ability to win contracts”
CFO: Should publish loan information? “want to discuss with ministers”

Few loans to private sector for-profit companies (only FMEL & BiFab).
Loans to the private sector normally made by Scottish Enterprise.
The £35m loan / equity investment in BiFab is not an “early on” investment.
Companies knowingly entered in loan contracts aware of potential for disclosure (FOISA).
Disclosure may aid the ability to win contracts (through increased stakeholder confidence).
Loans may have the perception of commercial loans. Reality: if they were commercial loans, there would be no need for state intervention (the market would provide the funding).
Disclosure is a matter for FOISA not ministers.

Gadawodd Mr Paterson anodiad ()

Shares at 31 December 2017, class ‘A’ Shares = 280,612
13 April 2018: 4 class ‘A’ shares allotted, amount paid £1 per share
18 May 2018: 99,774 class ‘B’ shares allotted, amount paid £320.72 per share
21 June 2018 9,354 class ‘B’ shares allotted, amount paid £320.71 per share
Class’B’ shares: 109,128 shares, total amount paid £35 million

Total number of shares:
Class ‘A’: 280,616
Class ‘B’: 109,128
Class ‘B’ represent: 28% shareholding

Scottish Ministers

1 Atodiad

Dear Mr Paterson,

 

Please find attached a further response to the your FOI request under
reference – FOI/18/02771

 

Regards

 

David Stevenson

 

 

 

 

dangos adrannau a ddyfynnir

 

Scottish Ministers

1 Atodiad

Dear Mr Paterson

 

Further to my email of 28 March 2019, on review I noticed a typographical
error in the penultimate paragraph. 

 

The sentence should of stated “………………as a result has not approached the
market to gauge the current market valuation of those shares.”

 

This has now been amended in the attached response.

 

Regards

 

David Stevenson

 

 

 

From: Stevenson DW (David)
Sent: 28 March 2019 14:13
To: '[FOI #522672 email]'
<[FOI #522672 email]>
Subject: FOI/18/02771

 

Dear Mr Paterson,

 

Please find attached a further response to the your FOI request under
reference – FOI/18/02771

 

Regards

 

David Stevenson

 

 

 

 

dangos adrannau a ddyfynnir

 

Scottish Ministers

2 Atodiad

Dear Mr Paterson,

 

Please find attached a further response, in relation to the above FOI
request.

 

Regards

 

David Stevenson

 

dangos adrannau a ddyfynnir

 

Dear Scottish Ministers,

Message for the FOI Unit

FOI/18/02771

The Scottish Government has a commitment to publish information released in responses to FOI requests on the same day as it it released to the respondent. Please ensure that information released in relation to the above case is promptly disclosed on the Scottish Government's website. It is public information after all.

Yours faithfully,

Mr Paterson

Scottish Ministers

Dear Mr Paterson
The final response on the FOI case below has been published.
https://www.gov.scot/publications/foi-18...

Kind regards

M Bruce

dangos adrannau a ddyfynnir

Gadawodd Mr Paterson anodiad ()

Audit Scotland's assessment of the 'commercial loan' value (at 31 March 2018 the loan was £19 million) :

"The following outlines details of our assessment of Scottish Government loans to BiFab and FMEL as part of our audit of the 2017/18 Scottish Government consolidated accounts.

Burntisland Fabrications Ltd (BiFab)

Commercial loan of £19 million made by the Scottish Government to BiFab Ltd during 2017/18.

Gross Valuation: £19 million
Net Valuation assessment by Audit Scotland at 25 September 2018: £6 million

We were aware of conditions that existed at the balance sheet date (31 March 2018) that would suggest a change (either an increase or a decrease) in the carrying value (recoverable amount) of the loan. Included in the loan agreement with BiFab is a provision for the loan to be converted to an equity stake, not exceeding a 38 per cent shareholding in BiFab. In line with International Accounting Standard 10, Events After the Reporting Period, we concluded that events after the reporting period (relating to the amount converted to equity provision) ratified conditions that existed before the financial year end. As a result, we reassessed the valuation of the loan and our audit judgement was that the valuation of the loan was impaired by £13 million, resulting in a net valuation of £6 million. Our assessment was based on the amount converted to equity and an estimation of the value of that equity stake."

Gadawodd Mr Paterson anodiad ()

Loans to Bifab:

Tranche 1: £15 million *
Tranche 2: £4 million *
Balance at 31 March 2018 = £19 million

* Finance & Constitution Committee of Scottish Parliament advised of the loans.

Tranche 3: £16 million #

Balance £35 million (converted to equity stake of 28%)

# Finance & Constitution Committee not advised of loan.

Tranche 4: £6 million, expired 31 December 2018.

Not known if drawn down
(giving potential of equity stake to reach £38%)

There is a further restructuring loan facility of £10 million (**) which is believed to be unused.

** Finance & Constitution Committee advised of this loan.

Gadawodd Mr Paterson anodiad ()

Why hasn't the government increased shareholding been recorded at Companies House yet ??

"AUDIT SCOTLAND:

Burntisland Fabrications Limited

23. In November 2017, the Scottish Government entered into an agreement to offer a commercial
loan facility of £15 million to Burntisland Fabrications Limited (BiFab), a fabricator of oil, gas
and offshore wind structures, to support the completion of two key contracts. Between January
and April 2018, the Scottish Government extended the loan facility up to £41 million as a result
of increasing costs associated with the completion of contracts for the Beatrice Offshore Wind
Farm. Included in the agreement with BiFab is a provision for the loan to be converted to an
equity stake, not exceeding a 38 per cent shareholding in BiFab. A further £10 million loan was
made available to BiFab in April 2018 to support business restructuring following the
completion of the contracts, taking the total loan support available to BiFab up to £51 million.

24. At the end of March 2019, BiFab had drawn down £37.4 million of the £41 million loan facility.
This was subsequently converted to equity by the Scottish Government representing a total
equity stake of 32 per cent. In the 2018/19 Consolidated Accounts, the Scottish Government
impaired the value of its equity stake from £37.4 million to £2 million to reflect expected losses
in line with new accounting requirements. This followed an assessment of the valuation of the
Scottish Government's equity stake by external professional advisors. The Scottish
Government plans to monitor options for when it will sell its shareholding, but no decision has
yet been made."

Gadawodd Mr Paterson anodiad ()

The responses provided in the following committee are worth reanalysis:

Public Audit Post-legislative Scrutiny Committee, 29 November 2018

Arguments put forward by Permanent Secretary (PS) & Chief Financial Officer (CFO) of the Scottish Government should be subject to challenge:

PS: “Numerous loans and investments”
PS: The loans are “early on” investments
CFO: Disclosure would create “risk to investment”
CFO: Government must act in “same way as commercial investor”
CFO: “significant number of loans per year”
CFO: disclosure would impact “the ability to win contracts”
CFO: Should publish loan information? “want to discuss with ministers”

Gadawodd Mr Paterson anodiad ()

Public Audit and Post Leg Committee, November 2018

https://www.scottishparliament.tv/meetin...

Gadawodd Mr Paterson anodiad ()

The Scottish Government's Chief Financial Officer explaining the 'commercial nature' of the loans to BiFab and FMEL and the EU's Market Economy Investor Principle back in November 2018 at the PAPLS Committee.

Just a few months later both loans are significantly written down.

https://www.scottishparliament.tv/meetin...

Gadawodd Mr Paterson anodiad ()

Gadawodd Mr Paterson anodiad ()

The First Minister making a "state aid" case (government policy, protection of jobs) rather than a market investor argument for the loans and investments. Compare and contrast to the comments made by the Scottish Government's CFO at the Public Audit Committee where he explained the market economy nature of the investments.

First Minister explaining protection of jobs as reason for investments:

https://www.scottishparliament.tv/meetin...

Gadawodd Mr Paterson anodiad ()

Shares at 31 December 2017, class ‘A’ Shares = 280,612
13 April 2018: 4 class ‘A’ shares allotted, amount paid £1 per share

Scottish Ministers (class B shares)
18 May 2018: 99,774 shares, amount paid £320.72 per share
21 June 2018: 9,354 shares, amount paid £320.71 per share
18 December 2018*: 25,145 shares, amount paid £95.447 per share

* SH01 form allotment date 18-Dec-18 but only filed at Companies House, 28-Sep-19:

“Section 555, Companies Act 2006, Return of allotment by limited company
(2)The company must, within ONE MONTH of making an allotment of shares, deliver to the registrar for registration a return of the allotment.”

Class’B’ shares: 134,273 shares, total amount paid £37.4 million

Total number of shares:
Class A: 280,616
Class B: 134,273
Class B represent: 32.4% shareholding

Gadawodd Mr Paterson anodiad ()

Total capital injections into Bifab (since 31 December 2017):

Scottish Ministers: £37.4 million (being 132,273 class B shares)
JV Driver: £4 {four pounds} (being 4 class A shares).

JV Driver holds shares via Bifab Holdings Limited

Gadawodd Mr Paterson anodiad ()

The extent to which the Scottish Government are going to prevent information on loans / investments to Burntisland Fabrications Limited entering the public domain:
1. False use of FOISA exemptions to withhold all information in responding to freedom of information requests (Scottish Information Commissioner intervention is required).

2. The unlawful deletion of payments to Burntisland Fabrications Limited from the SG’s section 31 (3) Public Services Reform (Scotland) Act 2010, financial transparency disclosure reports (payments over £25,000).

3. The deliberately late filing of Companies House information. The SG’s increased shareholding in BiFab was made on 18 December 2018 but only filed at Companies House on 9 October 2019 (10 months later). The legal requirement is that SH01 forms a filed within one month of the transaction date (section 555 (2) of Companies Act 2006).

4. The deliberate late filing at Companies House of the Burntisland Fabrications 2018 Annual Report and Accounts. The deadline for filing was 30 September 2019. The 2018 Annual Report remains overdue: https://beta.companieshouse.gov.uk/compa...

Gadawodd Mr Paterson anodiad ()

2018 Annual Report now published (18 December 2019, 2 1/2 months after statutory deadline).

https://beta.companieshouse.gov.uk/compa...

* No new investment at the sites.
* £400,000 paid in management fees to DF Barnes
* JV Drivers investment £4 plus £1 for initial purchase (total £5) for 67.6% shares
* Scottish Ministers investment £37.4m for 32.4% share

Gadawodd Mr Paterson anodiad ()

EC State Aid guidance:

"88. When a transaction is carried out under the same terms and conditions (and therefore
with the same level of risk and rewards) by public bodies and private operators who
are in a comparable situation (a 'pari passu' transaction), it can normally be
inferred that such a transaction is in line with market conditions. On the contrary,
if public bodies and private operators who are in a comparable situation take part in
the same transaction at the same time but under different terms or conditions, this
normally indicates that the intervention of the public body is not in line with market
conditions. "

Gadawodd Mr Paterson anodiad ()

Former BiFab workers call DF Barnes takeover ‘a disaster’ for Arnish yard

https://www.energyvoice.com/otherenergy/...

“It seems like they don’t want to put any money in the pot because they certainly haven’t invested in the Arnish yard.”

Gadawodd Mr Paterson anodiad ()

https://s3.eu-west-2.amazonaws.com/docum...

Page 30 of 32, Note 23

"23. Business combinations

Acquisition of Burntisland Fabrications Limited
On 17 April 2018 BiFab Holdings Limited acquired control of Burntisland Fabrications Limited through the purchase of 80% of the share capital for a consideration of £1."

Gadawodd Mr Paterson anodiad ()

At last! Somebody asking some questions....

Government
https://www.parliament.scot/S5_EconomyJo...

DF Barnes
https://www.parliament.scot/S5_EconomyJo...

Gadawodd Mr Paterson anodiad ()

DF Barnes response to parliament:

https://www.parliament.scot/S5_EconomyJo...

"DF Barnes has invested heavily in BiFab since our acquisition in business development,
training and equipment"

Soft investment charged to BiFab by way of management charge. Hard investment solely by Scot Gov. Risk / reward mismatch.

Gadawodd Mr Paterson anodiad ()

The BiFab scandal will continue unless and until someone in the media or parliament questions to original co-investment 'deal' between DF Barnes and the government drawn-up in 2018.

It was not a credible deal at the start and it appears to be about to run out of road.

Gadawodd Mr Paterson anodiad ()

Most of the information relating to BIFab was eventually published under this FOI:

https://www.whatdotheyknow.com/request/b...

Information that WAS commercially sensitive was not disclosed.