# Gravity Investment Group Ltd (07108879)

> Why UK company 07108879 went into administration, from the administrators' statement filed at Companies House, by companydig. Interactive version: https://companydig.co.uk/company/07108879

- **Status:** Administration ended
- **Administration began:** 2018-05-09
- **Incorporated:** 2009-12-18
- **Location:** Chatham
- **Industry:** 82990 Other business support service activities n.e.c.

## Why it went into administration

- Creditor pressure / legal action

## From the administrators' statement

The Company borrowed £4.5m from Pagebarn Limited, which was due to be redeemed in two tranches, on 19 December 2016 and 20 February 2017. Neither deadline was met and an extension to the facility was agreed. However, the Company was unable to settle the loan on the revised repayment date and Pagebarn approached PCR in August 2017 via their solicitors Dean Wilson LLP to undertake an review of the Company’s position and advise Pagebarn as to its options.

Several concerns were raised as a result of that review and Pagebarn continued to negotiate with the Director with a view to resolving the position without enforcement. It was intended that a consensual sale of the land in Sri Lanka owned by IWR would generate sufficient-funds to redeem Pagebarn Limited’s capital exposure and a proportion of accrued interest.

During these discussions it transpired that the Company was in arrears with HM Revenue & Customs for unpaid Corporation Tax and in April 2018 the Director was declared bankrupt. At this juncture, Pagebarn Limited made formal demand and sought the appointment of Administrators over the Company and IWR in order to protect their interest and the assets subject to their security. For the avoidance of doubt, Pagebarn Limited have refrained so far from appointing Administrators to three other group companies over which they have security, as they do not appear to have any readily realisable assets, however, this remains under consideration.

Statement of proposals: https://find-and-update.company-information.service.gov.uk/company/07108879/filing-history/MzIwOTcxNjM4N2FkaXF6a2N4/document?format=pdf&download=0
Companies House register: https://find-and-update.company-information.service.gov.uk/company/07108879

Contains public sector information from Companies House, licensed under the Open Government Licence v3.0.