Electors fund City Link redundancy payments: Better Capital evades moral responsibility

jon moultonAs approaching 3000 households were cruelly faced with an uncertain future on Christmas Eve, those playing roulette with their lives cheerfully walk away.

On a sister website see reference to another such operation: the Phoenix gamble in Birmingham – and the fate of Jaeger and Reader’s Digest at the hands of Better Capital.

Better Capital is described as a ‘restructuring specialist’ which specialises in ‘distressed assets’, buying companies for a nominal sum ranging from £1- £10.

As it relies on the taxpayer to fund redundancy payments for nearly 3,000 staff, Jon Moulton’s company will rank ahead of staff when proceeds from the liquidation are distributed and will recoup up to £20m of its investment.

It is reported on the Investegate website to have invested £40m as a secured loan to protect its interests as a ‘secured creditor’ in the not unlikely event of City Link’s collapse.

Press and government support this form of piracy

Moulton has made friends in political circles asa former donor to the party of government’,.. These, and media outlets, celebrate his ventures which so often lead to disaster for the employees of the firms ‘rescued’. The Telegraph’s 2013 upbeat article about his acquisition of City Link – for £1 – according to the Daily Mail – now makes sad reading: under Jon Moulton, City Link “will deliver the goods” – “His style is old-school investment and turnaround”.

We see once more the damage done by casino capitalism, underpinned by the government with public money, as the taxpayer comes to the aid of jettisoned employees. How many of these subsidies will be received by the so-called private sector before electors demand change?

An earlier post on this subject: http://ourbirmingham.wordpress.com/2014/12/29/beware-spin-phoenix-paradise-and-now-better-capital/

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Posted on December 30, 2014, in Conflict of interest, Corporate political nexus, Democracy undermined, Economy, Finance, Government, Media, Party funding, Reward for failure, Taxpayers' money, Vested interests and tagged , , , , , , . Bookmark the permalink. 4 Comments.

  1. A Lancashire civil servant emails:

    Evading moral responsibility seems par for the course these days at every level and every commercial, corporate or political persuasion.

    The answer must be to make sure individuals are aware of what goes on under their noses and that they are not distracted by everyday trials and tribulations along with all manner of temptations or hardships.

    If they turn a blind eye and do not speak out or act against wrongdoing, how can we ensure democracy is preserved and proper accountability is in place?

    How can we ensure that hypocrisy is not masked by clever PR, marketing or downright dishonesty; and that the greedy and self serving do not quietly and stealthily infiltrate the establishment organisations and institutions, supposedly there to support and protect peaceful and civilised society?

  2. Have you a proven link between Jon Moulton and UKIP. This seems to be another Establishment smear used to discredit the millions of UKIP voters.
    I have no interest in your political allegiance as just want confirmation of something written in my union magazine.
    Cheers,
    A UKIP and RMT member.

  3. Well spotted!

    A case of ‘everyone says’ but after reading your comment I searched and found this stated only on (many) social media websites, with no sources or figures given. His support ‘sympathy’ is recorded here:
    http://www.thisismoney.co.uk/money/markets/article-2932127/Does-Jon-Moulton-midas-touch.html

    and funding allegations in another fairly mainstream source – but only in the letters columns:
    http://www.thenorthernecho.co.uk/features/letters/11704479.Ukip_s_funding/

    I shall delete the reference – it is irrelevant and may be unfounded.

    I am sympathetic to all the small parties coming forward and hope they do well in the forthcoming election – though wish UKIP would take environmental issues on board.

  4. Thank you for your well mannered and honest reply. My possibly ex-union stated that this greedy piece of rubbish was bankrolling UKIP. I found only gossip and innuendoes.
    I am also on the Stop Heathrow Expansion Committee and UKIP oppose both the HS2 vanity project and foreign governments bulldozing Heathrow Villages.
    The problems in our country have not been caused by us but we are a convenient scapegoat used by The Establishment to deflect from their own corruption.
    Cheers, Bryan

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