Monty's West 175 suspends shares

FORMER Mirror Group boss David Montgomery's hopes of becoming a media tycoon suffered another setback today when shares in his tiny vehicle, West 175 Media Group, were suspended while the company tried to sort out a settlement with a major creditor.

Monty pumped £50,000 of his own money into West 175 and took the chair in June last year after the company, which produces TVs Masterchef, fell into disarray. In 2000 the shares soared as high as 460p but were suspended this morning at only 1.5p, valuing the company at £340,000.

Before Monty took over, directors included Sir David Frost and John Gunn, the former British & Commonwealth boss. Both walked out, but Montgomery persuaded Gunn to rejoin the board as a non-executive a year ago.

However, the company no longer records him as a director, prompting the assumption that he may have resigned twice.

Recently, West 175 sold off its New Zealand interests to a former director and then announced it was trying to arrange settlement with its creditors, offering them 20p in the pound. At the same time, it was taken to an industrial tribunal by a former employee and ordered to pay her £20,000.

West 175 is registered in the United States but operates from Ireland, where Montgomery has a home. It has conducted its affairs for the past year under a veil of obscurity, not to say secrecy.

David Poutney of West's broker Numiss Securities says: 'One creditor is being stubborn, but it's less than £100,000 so the company isn't going belly-up.'