Clifden Holdings Limited (08760662): administration
- Status
- Administration ended
- Administration began
- 2015-03-09
- Administrators
- Benjamin Thom Cairns, Alan Michael Hudson
- Administrators' firm
- EY
- Incorporated
- 2013-11-04
- Location
- London
- Industry
- 64306 Activities of real estate investment trusts
Why it went into administration
- Regulatory change or action
- Creditor pressure / legal action
- Rising interest rates
- Funding withdrawn / unable to refinance
From the administrators' statement
The Company ts a holding company whose matertal asset was the 100% shareholding in ERIL ERIL ts an SPV that holds some 1,023 home reversion equity release mortgages and Is regulated by the FCA
The Company bought the entire issued share capital of ERIL from GERL pursuant to a share sale agreement dated 9 January 2014 for a total consideration of £87 6mn (the “Original Share Sale Agreement”) This consideration was made up of an initial 60% cash payment, totalling £52 6mn, with the remaining 40% payable to GERL within 12 months of the transaction, plus interest accruing thereon (the “Deferred Consideration”) The Company was primarily liable for ¢ £3m of the Deferred Consideration and ERIL was primarily lable for the balance However, each of ERIL and the Company cross-guaranteed the others’ obligations (the “Inter-company Guarantees”)
We understand that the ultimate aim of the Company was to create a securitisation structure in order to refinance the mortgage portfolio owned by ERIL and also repay the Deferred Consideration However, we understand that this was not possible within the timeframe required and no securitisation structure was in place prior to the Joint Administrators’ appointment
Administrators' statement of proposals (2015-05-12) · Companies House register