Barry did not tell investor he was owed £40,000

Former Century Radio director Mr Oliver Barry said he must not have told a new investor he was owed £40,000 in 1990, or thought…

Former Century Radio director Mr Oliver Barry said he must not have told a new investor he was owed £40,000 in 1990, or thought there was no point in looking for it then.

The tribunal had been told previously that Mr Barry claimed the sum after Capital Radio invested in Century but there was no documentation. Mr Barry then told Capital the £40,000 plus VAT was from his own account, used to pay wages for 25 weeks at £1,600 a week.

Yesterday, Mr Pat Hanratty SC, for the tribunal, said Century and Capital Radio entered into an investment agreement. On September 3rd, 1990, Capital's solicitor wrote Century a letter in which there was a clear indication that Capital wanted to be told of any debts which were not in Century's accounts.

In the following disclosure letter, there was no mention of £40,000 which Mr Barry later claimed for services rendered. Mr Hanratty asked Mr Barry why it was not included.

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Mr Barry said his co-director, Mr James Stafford, wanted to put Century into liquidation in 1989, and in January 1990 the bank recommended various cuts. Mr Barry said he moved into the building with his staff to keep the ship afloat.

"We paid salaries out of our own pocket and so there was no point in looking for money for myself from the company at that stage," he said. "When we succeeded in obtaining investment from Capital, Mr Stafford and I entered into a gentlemen's agreement that I would be recompensed."

Mr Barry said he was busily engaged in coping with a crisis and he would have left the documentation to the professionals.

"The best reason I can give is that I must have neglected (to include it) or felt that there was no point in going to an empty well," he said.

Mr Hanratty said Capital was never told Mr Barry was claiming £40,000 for services rendered. The disclosure letter was the end of a tortuous and detailed process.

Mr Barry said if the documentation was not up to speed it may have been a bit of carelessness or there was no point, as he was trying to keep the staff happy and he did not want to take a lump sum out of the company.