Opal City Developments Limited (06296491): administration
- Status
- Administration ended
- Administration began
- 2013-03-18
- Administrators
- Brian Green, Colin Michael Trevethyn Haig
- Administrators' firm
- KPMG
- Incorporated
- 2007-06-28
- Location
- London
- Industry
- 41100 Development of building projects
Why it went into administration
- Funding withdrawn / unable to refinance
From the administrators' statement
The Group was the third largest provider (and the largest private provider) of student accommodation in the UK with 52 properties, operating 19,134 student / professional rooms, 224 hotel rooms and a conference centre As well as operating these properties, the Group also constructed new developments, for its own purposes and for third parties
SPVs were set up to own properties Lenders provided debt on a bilateral basis to these SPVs, using the property within the SPV as security for the lending Asa result, there are 12 lenders providing total debt of £887 mullion to the Group OPG was appointed managing agent over the Group’s properties, as well as collecting income and settling the trading liabilities of the Group
The reduction 1n property values 1n recent years has resulted in a reduction in the security values available to the Group’s lenders, and consequently covenant breaches Whilst the Group made EBITDA of approximately £60 million in the year to 30 September 2012, it carried a high debt burden and was not able to continue to service its interest costs and capital repayments
Administrators' statement of proposals (2013-05-22) · Companies House register