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Developers In Trouble


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This is October 2012 news but was there any property developer links to this story that went to press?

http://www.colerainetimes.co.uk/news/local/shock-as-carhill-dealership-closes-1-4422115

don't think so - Turtles of Rathkenny have also closed. New car sales are stlll miles below peak.

http://www.ballymenatimes.com/news/local/turtles-rathkenny-creditors-meeting-1-4631180

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Patton Group creditors set to lose at least £63m

http://www.bbc.co.uk/news/uk-northern-ireland-20912793

The failure of the Patton Group is set to cost banks, suppliers and subcontractors at least £63m. The details are in the administrator's report into the collapse of the construction business, based in Ballymena, County Antrim.

The administrator, Tom Keenan, has confirmed that subcontractors and suppliers who are owed a total of £58m are unlikely to get anything.

Mr Keenan said there is "unlikely to be a dividend for unsecured creditors".

He said this is based on assumptions regarding how much money can be recovered from outstanding contracts and work in progress.

An estimated outcome statement prepared by Mr Keenan also shows that Danske Bank is owed £15.6m but is likely to lose almost £5m of that. The statement does not include the group's debts to other banks so it is not clear how much they will lose.

Bank of Ireland is owed more than £14m, Ulster Bank is owed £581,000 and First Trust is owed £301,000.

Mr Keenan also revealed that while he has met various parties in relation to the sale of the remaining parts of the Patton business, no offers have so far been made.

He said the group owned a significant property portfolio for which he is in the process of drawing up a sales strategy.

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Are you sure about that BB? I heard differently yesterday that they were still open.

High Court Belfast Bankruptcy Proceedings 10 January 2013

10:00 WINDING UP PETITIONS

12/130733 ME & MRS JONES LIMITED

Heard they hadn't been paying their food bills

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Something strange has happened that's for sure BB. Their website is still there but their Facebook site has disappeared. Nobody is answering their phone either.

You could be right yet.

Maybe I was misinformed :( Maybe they were just closed on New Years Eve. BIG difference :ph34r:

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Paul Gosling was on Radio Ulster this morning saying another of the Orana companies has been placed into administration. This time its the firm which held a big site on Crescent Link in Derry. Attwood recently turned down an aplication to build a Sainsbury on that site.

So the updated record for Orana is:

Gilford Mill - nothing developed

Outlet - effectively repossessed by Ulster Bank

Crescent Link - repossessed

Opportunity Omagh - anchor tenant pulled out

Inver Park, Larne - failed to get plannning permission

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Paul Gosling was on Radio Ulster this morning saying another of the Orana companies has been placed into administration. This time its the firm which held a big site on Crescent Link in Derry. Attwood recently turned down an aplication to build a Sainsbury on that site.

So the updated record for Orana is:

Gilford Mill - nothing developed

Outlet - effectively repossessed by Ulster Bank

Crescent Link - repossessed

Opportunity Omagh - anchor tenant pulled out

Inver Park, Larne - failed to get plannning permission

Confirmation of the insolvency http://www.bbc.co.uk/news/uk-northern-ireland-21082499

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  • 2 weeks later...

http://www.bbc.co.uk/news/uk-northern-ireland-21233127

Lloyds bank ordered to hand over documents for developer

This could get interesting...in essence they're going to have to reveal exactly what their policy is on the outstanding BoSI loans. I wonder if the bank will see the prospect of a former senior lender testifying against them as just too embarrassing and so settle sooner rather than later?

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Another developer in the courts. Department of Agriculture seems do badly at another property venture

http://www.u.tv/News/Gosford-Castle-firm-lose-legal-battle/1845a14c-2ad6-4790-90ed-fb16354c218d

The company behind a unique scheme to transform a 19th century castle into an apartment complex may be forced out of business as a result of losing an £80,000 legal battle, a High Court judge has said.

Gosford Castle firm lose legal battle

The case was heard at the High Court in Belfast on Tuesday

Mr Justice Weatherup put his final order on hold until full details of Gosford Castle Development Ltd (GCDL)'s financial circumstances are disclosed.

The firm unsuccessfully defended a claim by a construction company for bonus payments on work on the residential project at Markethill, Co Armagh.

Twenty three homes were to be created within the walls of Gosford Castle, which was sold off by the Department of Agriculture and Rural Development in 2006.

Under the terms of the arrangement half of any profits from the apartment scheme would go to the Department.

Although the economic downturn has prevented full completion of the project, bonuses of around £200,000 were paid to the builders on finishing 10 homes.

But plaintiffs Darren Rodgers and Stephen Rice, as R&R Construction Ireland Ltd, issued legal proceedings over work on another five properties.

Mr Justice Weatherup held on Tuesday that they are entitled to bonuses because they were not responsible for terminating their agreement with GCDL.

He ruled that the amount due was £80,000. However, the judge recognised the potentially fatal consequences for the defendant company.

He pointed out that the development has been "dormant" since 2010, with no further progress on sales and heavy bank debts.

"He (the developer) is waiting for better times to emerge," Mr Justice Weatherup said. "That may be some considerable time, but I'm satisfied from what I have heard the defendant company does not have £80,000 to pay the plaintiff, which is the sum due.

"Enforcement against them may force the whole project into liquidation."

Mr Justice Weatherup said he was minded to put a stay of enforcement on his order. But recognising the potential impact on the plaintiff's, he also asked for details of their financial situation.

Their lawyer told the court he also wanted to interrogate GCDL on its finances and level of bank debt, claiming that the Gosford Castle scheme involved an entitlement to heritage fund grant.

He said: "This is a fairly unique situation. The government has given this company this land."

It was argued that the developer could "mothball" the scheme because so little outlay was involved.

The barrister added that as yet the Department of Agriculture and Rural Development has received "zero" profit.

"That itself seems rather peculiar," he added.

Mr Justice Weatherup told him he wanted all inquiries completed before the Easter recess.

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