UK: Dudley Council has acquired the Black Country Innovative Manufacturing Organisation, which operates a purpose-built rail research, development and testing facility including the Very Light Rail National Innovation Centre. The council is now seeking an operator to manage the site.
The site was developed at cost of £32m and has a 2·2 km test track, engineering laboratories, meeting and event spaces, and serviced offices.
However, BCIMO failed to secure further funding, and on July 1 Deviesh Raikundalia and Tyrone Courtman of RSM UK Restructuring Advisory were appointed joint administrators.
An accelerated sales process was launched, while continuing day-to-day operations at the VLRNIC, and the business and assets were sold to the council on July 14. RSM UK was supported by Sills & Betteridge Solicitors and Lambert Smith Hampton Asset Advisory.
Raikundalia said the deal ‘has safeguarded the future of VLRNIC, preserving continuity for its occupiers and lays the foundation for renewed investment in transport innovation’.
Invest-to-save decision
Councillor Steve Clark, Cabinet Member for Resources at Dudley Council, said ‘the council has previously provided financial support to BCIMO and so, when the board of directors put the organisation into administration, we made the decision to put in a bid for the business and assets to protect this investment.
‘The bid was successful and as the owner of the site, we will now be receiving income from the existing tenants, while looking for an operator to take on the responsibility of operating the site.
‘This was an invest-to-save decision, which will generate income for the council now and into the future, champion local innovation and support the creation of high value employment opportunities in our borough.’
- Rail Business UK visited the Very Light Rail National Innovation Centre earlier this year.
