VON Essen Hotels 2 Limited (04303266): administration
- Status
- Administration ended
- Administration began
- 2011-08-12
- Administrators' firm
- EY
- Incorporated
- 2001-10-11
- Location
- Bristol
- Industry
- 5510
Why it went into administration
- HMRC / tax arrears
- Creditor pressure / legal action
- Cash flow / liquidity pressure
- Property / lease costs
From the administrators' statement
The Companies derive their monthly rental income from the OpCos under the terms of a licence to occupy the properties The Licence Fees were not based on prevailing market rates but were at a set level which would enable the amounts borrowed by VEHL from the Lenders, to be serviced
The weak economic environment of 2009 and 2010 culminated in reduced bookings and guest expenditure at the hotels and this severely impacted the OpCos financiai performance Due to the poor financial performance of the OpCos, they stopped paying the Licence Fee to the Companies Consequently, the Companies encountered substantial cash flow difficulties, as the Licence Fees were used by the Companies to pay the costs of finance recharged by VEHL
Statutory demands were issued by creditors against VEHL2, VEHL4 and VEHLS5 In addition, HMRC threatened to instigate winding up proceedings against VEHL2, VEHL4 and VEHL5S due to outstanding VAT arrears There was also deferred consideration in VEHL2, VEHLS and VEHL7 owing to various parties which was outstanding or would become payable in the future Further, VEHL5 had a winding up petition filed by one of the parties who was owed deferred consideration on 11 July 2014
Administrators' statement of proposals (2011-10-19) · Companies House register