Troubled phone company Link Telecom has moved back to Keighley as part of efforts to save the business.

One arm of the company — ETC — has gone into liquidation but another, with 50 employees, is now based at Dalton Lane.

It is understood that a number of redundancies may be made but yesterday no-one would comment as consultations are under way.

Boss Gary Fawcett said Link Telecom had addressed its difficulties head on and would continue to do so.

He said: “I will not shy away from my or Link Telecom’s responsibilities. One commercial arm of the group — ETC — has gone into liquidation. This decision has been made reluctantly.”

Mr Fawcett’s comments came after a tense meeting with creditors — including many Bradford-district schools — last week. Link Telecom went into administration last October owing £6.4 million, with £750,000 owed to 90 schools and other organisations who had signed up to “cashback” mobile phone contracts.

Through a system of refunds and commission, the three-year contracts were designed to give the schools free phones and line rental.

Some of the payments stopped when Link Telecom ran into financial difficulties, caused it is alleged partly by O2 cutting the amount of commission paid to Link Telecom.

Mr Fawcett told last week’s meeting that he was taking legal action against O2, which he claimed changed the terms of the contract without notifying Link Telecom. Mr Fawcett yesterday told the Keighley News: “In our view they reneged on an agreement. As a result, a number of clients, especially schools, have suffered a loss of cash back.”

Mr Fawcett said he had presented three possible solutions to creditors last week.

He said: “First, clients could sign up to a new agreement with Vodaphone which has made a fund available to mitigate the loss suffered.

“Second, O2 has agreed to re-negotiate directly with clients. Indeed, I am aware that at least two schools have successfully mitigated their position with 02.

“Third, any funds recovered from O2 via litigation will be shared with those clients that have been affected.”

He added: “There is no escaping from the fact that this has been a difficult year. But Link Telecom is still here, finding practical solutions and not hiding away, and is back in Keighley. I am still here and intend to be so for the foreseeable future.”

A spokesman for O2 said: “Link Telecom is experiencing financial difficulties which is affecting our customers. We are working through already documented issues and intend to resolve any complaints with the schools directly and are in the process of doing that now.”

l Link Telecom’s academy sponsorship with Greenhead High School left the school being owed thousands of pounds.

l Silsden Football Club — The Cobbydalers — lost its main sponsor, Link Telecom, after it went into administration in October. Members of the team have been playing for free to help the club.