North West homebuilder enters administration

by: Carmen Reichman
  • 26/01/2017
  • 0
North West homebuilder enters administration
Multi-million pound homebuilder Arley Homes North West, has entered administration following a failed restructuring process under too much debt.

The firm has appointed Moorfield administrators Arron Kendall and Simon Thomas at the end of October to carry out the wind-down process, records published on Companies House show.

According to its last set of full accounts, the firm had a turnover of almost £18m in 2014 but posted losses of £165,100 (after tax) .

Parent company Arley Homes went into administration in July 2013 after its sole secured debt holder, Clydesdale Bank, appointed PwC as administrators.

The administration of the company had been the “culmination of various phases of restructuring” and high debts within the group, which included Arley Homes North West, the administrators said.

From 2013, Arley Homes North West traded outside of the insolvency process under newly-appointed director John Bowman and chief executive Gerry More, whose aim it was to wind down the company, sell off its assets and pay back £4.4m owed to Clydesdale Bank and a further £9.2m to unsecured creditors, mainly Arley Homes.

The orderly wind-down included completing its housing development programme with projects such as Duxbury Manor in Chorley and Tottington Grange near Bury.

However, it was already apparent at the time that the company was insolvent due to the “significant bad debts” owed to Clydesdale and others, the administrators said.

The debt owed to Clydesdale was eventually sold to Promontoria (Henrico), a Dublin-based company set up by distressed debt investors Cerberus Capital Management.

According to the statement of affairs for Arley Homes North West, there is about £220,950 available for distribution to Promontoria (Henrico) and a further £9,100 for the unsecured non-preferential creditors, including Arley Homes.

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