SHARE trading in troubled County Durham glass maker Romag was suspended last night following the discovery of a payment to the company by its executive chairman, John Kennair.

An investigation is taking place into the transaction, which the board admits should have been disclosed earlier.

Romag’s share price had already fallen on the London Stock Exchange’s AIM market by 5.5p by the time the shares in the solar panel and bulletproof glass manufacturer were suspended.

Romag, based near Consett, last week delayed the release of its trading update after it had to write down £6m from its balance sheet, which relates to stock and intangible assets. It is also attempting to agree a new financing deal with Lloyds Banking Group.

In December, Romag revealed that it had been haggling over the return of a £2.4m deposit paid to one of its long-standing suppliers.

Speaking at the time, Mr Kennair, 66, who was awarded an MBE in 1990 for services to the specialised glass industry, said: “Hopefully, this is the last of the bad news this year. Other than this, we are very optimistic that 2011 will be a good year for us.”

Mr Kennair owns about 12 per cent of Romag, which has endured a turbulent past year. In June, Lyn Miles, the firm’s inspirational boss, died aged 57, after a long illness.

Mrs Miles had played a major part in transforming the company into one of the leading manufacturers of photovoltaic solar panels.

Mr Kennair came out of semi-retirement to take over day-to-day control of the business, and under his guidance the company reduced its debt by about £2.2m, and built up a strong order book.

Yesterday’s stock exchange announcement read: “The board of directors of Romag Holdings PLC has requested the immediate suspension of trading in the company’s shares following the disclosure of a payment from John Kennair to the company.

“Following notification of these matters to its nominated advisor today, the board recognises that various matters should have been disclosed at an earlier date and the non-executives are commissioning an investigation into the transactions undertaken, including the company’s corporate governance procedures and any noncompliance with relevant rules and regulations.”

A further announcement is expected this week.