TWO East Lancashire businessmen have been banned from acting as company directors after their company was placed in voluntary liquidation with debts of almost £95,000.

Peter Alan Astley, of Heyfold Gardens, Darwen, and Jack Birnie, of Haslingden Road, Guide, were directors of Proforma Foam Ltd which traded as foam converters from premises at Chadwick Street, Lower Hollin Bank Street, Blackburn.

They were disqualified from taking part in the promotion, formation or management of any company for five and four years respectively in the Blackburn County Court.

The court was told that the Proforma Foam had traded from June 1992 to December 1998 before being placed into voluntary liquidation in January 1999 with an estimated deficiency to creditors of £94,876.

Matters of unfit conduct found by the court included:

Both Astley and Birnie failed to ensure that Proforma Foam maintained and supplied accurate accounting records to enable the Inland Revenue to asses tax liabilities.

The company had under-declared its profits to the Inland Revenue by £45,000.

Astley had withdrawn money from the company for his personal benefit that was never recovered.

After Astley resigned in 1997, Birnie failed to adequately manage and record debtors, creditors and cash.

Birnie allowed the company to supply customers regardless of their ability to pay.

Birnie caused Proforma to loan money to an associated company, Stuffers and Fillers Ltd, which it had no prospect of recovering.

The court accepted that Birnie only became aware that Astley had taken money for his own benefit at a later date.

Astley and Birnie have been warned they risk a prison sentence of up to two years if they act in breach of the qualification orders.