Bowthorpe Developments Limited (11282234): administration
- Status
- Administration ended
- Administration began
- 2022-02-14
- Administrators' firm
- RSM
- Incorporated
- 2018-03-29
- Location
- Leeds
- Industry
- 41202 Construction of domestic buildings
Why it went into administration
- Creditor pressure / legal action
- COVID-19
- Funding withdrawn / unable to refinance
From the administrators' statement
Bowthorpe Developments Limited (‘the Company’) was incorporated in March 2018 as a ‘special purpose vehicle’ to purchase land and develop nine residential properties on the site in North Scarle, Lincoln (the ‘Development’. At the date of incorporation, the sole shareholder was Bowthorpe Group Limited; a company ultimately owned jointly by Christopher Wild (‘CW’) and David Richard Nicholls (‘DN’). CW and DN were also the only directors at that time.
In order to fund the Development, debt funding was secured from Helmsley Acceptances Limited (‘Helmsley’), which agreed to provide 100% of the development finance and 30% of the land acquisition finance (£2.1m of capital in total). The balance of funding came from loans made by CW and DN as well as £369,250 from Carmalor Holdings 2005 Limited (“CHL”). CHL is a company ultimately controlled by Mark Brown (“MB”). At the time of CHL’s investment, in late 2018, MB became a director of the Company and CHL became a 50% shareholder. At the same time it was agreed that E. Taylor & Sons (Southwell) Limited (E.Taylor’), a subsidiary of CHL and, therefore, ultimately controlled by MB, would be the main contractor of the Development.
To document the above, various loan agreements and a shareholder agreement were entered into. These documents dealt with the order or repayment, as well as detailing the split of any potential profits from the Development.
Administrators' statement of proposals (2022-03-18) · Companies House register