WORKERS at a firm's three engineering factories face an uncertain New Year after an accounting probe was launched at their parent company.

Shares in TransTec - owners of Earby Light Engineers - were suspended on Christmas Eve after the company revealed that two bosses had left after the discovery of an accounting irregularity.

Transtec, founded by Tony Blair's former paymaster general Geoffrey Robinson, is already in the process of renegotiating its debts with bankers.

The accounting probe will centre on an £11.2million claim from a customer which the company said "was not reflected in the accounts".

Earby Light Engineers has two factories in Colne and one in Kelbrook employing more than 250 people. It specialises in machining of metals for the aerospace and automotive industries. Earlier this year, TransTec reported losses of £4.1million and said it was renegotiating its debts with bankers. Its share price has fallen from more than 100p two years ago to just 6.5p on Friday.

Geoffrey Robinson, the millionaire MP who hit the headlines after the revelation that he loaned money to Peter Mandelson, owns 16 per cent of the firm.

In a statement to the stock market, TransTec said its chief executive Richard Carr and director Bill Jeffrey had resigned over the customer claim issue.

TransTec added that it would give an update to shareholders "as soon as practicable", a move which might not come until after Wednesday, when the stock market reopens for trading after the Christmas break.

Under accounting rules, the car and aircraft parts manufacturer's books should have included the 18 million dollar customer claim.

It also said trading conditions had remained "difficult" since September, although there were some signs of improved trading with some of its key customers.

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