A weekly newspaper is facing threats of legal action from the administrators of a coach firm which went bust unless it reveals its sources for an investigation into the firm’s collapse.

Croydon Advertiser reporter Gareth Davies carried out an investigation earlier this month into the downfall of Ruskin Private Hire, a firm which specialised in transporting hundreds of disabled children to and from school in London.

Now solicitors representing the admininstrators FRP Advisory have asked the paper to hand over all documents relating to the company.

But Advertiser editor Glenn Ebrey says he has no intention of complying and has placed the matter in the hands of the paper’s own lawyers.

Said Glenn: “Gareth’s investigation was a fantastic piece of old-school journalism. It shed new light on an issue of enormous public interest which affected hundreds of parents and their children.

“We have absolutely no intention of revealing our sources or disclosing any evidence and the matter is in the hands of our lawyers.”

Gareth’s investigation produced a special report about the collapse of the company and its £2.5 million High Court compensation claim against Croydon Council.

The article included claims, made by senior figures at Ruskin, about the lengths FRP Advisory had gone to in trying to obtain evidence about the High Court case.

Solicitors Francis Wilks & Jones, representing joint-administrators Anthony Wright and Geoffrey Rowley, of FRP Advisory, have given the paper until tomorrow to comply with its requests.

In a letter, they say that otherwise they will have “little option” but to take legal action to try and force us to do so, including asking a court to compel our reporter to provide a witness statement about his dealings with Ruskin Private Hire.

Francis Wilks & Jones claim two sections of the Insolvency Act 1986 could be used to force the newspaper and Gareth to comply with its requests.

However under section 14 of the Editors’ Code of Practice, journalists have a moral obligation to protect confidential sources of information.

In a story about the legal threat, the paper said: “The Advertiser firmly believes this is a matter of public interest by which newspapers are afforded considerable protection under Article 10 of the European Convention on Human Rights.

“The Advertiser wishes to state publicly that it will protect its sources and will not disclose any evidence it has been given. The matter is with our solicitors.”