FINANCIAL DISPUTE AT WSR HEADS TOWARDS RESOLUTION

A financial dispute between the West Somerset Railway Association and WSR plc was said to be close to resolution as this issue went to press.

The two parties had been unable to agree terms on payment of the sale of WSRA (Promotions) Ltd to the WSR plc – compelling the association’s trustees to file a Serious Incident Report to the Charity Commission.

As recommended in the ‘Coombes Report’ review of the WSRA in 2015, the restoration workshop at Williton, and the café and shop at Bishops Lydeard, both of which were previously operated by WSRA (Promotions) Ltd, were transferred into the ownership of the plc in December – but in a letter to members on June 17, WSRA acting chairman Mike Sherwood said that the plc had not paid the cost of £91,000 in February as agreed.

However, Mr Sherwood told Steam Railway on July 14: “The WSRA is hoping we’ve sorted things out with the plc regarding the sale of [WSRA] Promotions. We’re sympathetic to the cash call created by the current crisis and have offered to convert the sale proceeds into a loan. We’re hoping to finalise the paperwork in the next week or so.”

He added: “Depending on how the matter is resolved, the loan would be for a sum between £70k and £91k. First, the WSR would pay the sale proceeds to conclude the sale. Second, and on the same day, the WSR plc will then either borrow £70k or £91k from the WSRA (put simply they will borrow up to 100% of the sale proceeds).”

WSR plc chairman Jonathan Jones-Pratt said: “20 months of effort has been put into this – it should have all been sorted but sadly it wasn’t, Covid-19 hit and there was a need for a different approach – at no point did we not wish to pay, we simply couldn’t at this moment in time. We need to preserve cash.”