Thorntree Properties Limited (04373931): administration
- Status
- Administration ended
- Administration began
- 2017-03-27
- Administrators
- James Alexander Snowdon, Michael Colin John Sanders, Georgina Marie Eason
- Administrators' firm
- MHA
- Incorporated
- 2002-02-14
- Location
- London
- Industry
- 41100 Development of building projects
Why it went into administration
- Funding withdrawn / unable to refinance
From the administrators' statement
The Company was incorporated in February 2002 to acquire on a buy to let basis and act as landlord in respect of properties predominantly in the Goole area of East Yorkshire. The Company's sole director and driving force was David Wilcock, who is also a director and shareholder of Wilcocks Contractors Limited, which built the properties.
Initially finance was provided by HSBC Bank PLC, subsequently by The Royal Bank of Scotland Pic and finally by Clydesdale Bank PLC (“Clydesdale”), who became the principal lender to the Company. By 28 February 2009 the Company’s property portfolio had a book value of £1m and it was breaking even and by 28 February 2011, the book value had increased by 10% and, we understand, future prospects looked “solid”. However, in that year Clydesdale withdrew from such property lending. The director then sought to obtain alternative finance but found this hard to do. We understand that rental income deteriorated and the Company struggled to meet its commitments. By 31 March 2016, the Company had accumulated losses of £200,000 and was balance sheet insolvent by more than £30,000.
On 5 June 2015 Clydesdale sold its loans to Thorntree to Promontoria. Following this sale, various negotiations took place as regards refinancing of the loans to Promontoria. The Company failed to achieve a refinancing or reach an agreement with Promontoria as regards repayment of its debt. The Director then sought independent financial advice in March 2017 from Insolvency Practitioners Yerrill Murphy LLP, who took steps to put the Company into insolvent liquidation. Promontoria then made demand for all sums due to it. When the Company was unable to repay the debt in full |, together with my colleague Paul Davis, was appointed Joint Administrator by the court on 27 March 2017.
Administrators' statement of proposals (2017-05-31) · Companies House register