Treetops DAY Care Swansea Ltd (09131495): administration
- Status
- Administration ended
- Administration began
- 2018-07-02
- Incorporated
- 2014-07-15
- Location
- Bristol
- Industry
- 85100 Pre-primary education
Why it went into administration
- Funding withdrawn / unable to refinance
- Competition / price pressure
From the administrators' statement
The Joint Administrators were initially contacted by the fixed and floating chargeholder, Knox Commercial Finance Ltd (“Knox”) on 26 June 2018, in order to provide advice in respect of the Company's indebtedness and the options available under the terms of the charge.
Knox had provided a secured loan in the sum of £805,000 to the Company in 2014 for the purchase of its trading premises and some refurbishment works. Both Knox and the company used the same firm of solicitors for the purchase of the property and the granting of the security. Knox obtained a professional valuation confirming that, in the opinion of the appointed firm of surveyors, the property was worth in the region of £900,000 or more, depending on development prospects. The Company was in a competitive bid process with another party and made an offer based on what Knox was prepared to loan the Company, based on the value of security to be given by way of a first fixed charge over the premises.
Subsequent to the purchase the Company considered selling the premises. An interested party made an offer for the premises which the Company decided to accept and, during the initial stages of the sale process it transpired that the premises were subject to restrictive covenants preventing development of the site in the future without the consent of the beneficiary of those covenants. The existence of the covenants was known to the solicitors prior to the purchase of the premises but not shared with the surveyors, Knox or the Company until some time after the purchase had completed. As a result of this new information the sale was lost.
Administrators' statement of proposals (2018-09-05) · Companies House register