Churchlake NE Hold Co Limited (14216678): administration
- Status
- Administration ended
- Administration began
- 2022-11-09
- Administrators
- Benjamin John Wiles, Philip Joseph Dakin
- Administrators' firm
- Kroll
- Incorporated
- 2022-07-05
- Location
- London
- Industry
- 87300 Residential care activities for the elderly and disabled
Why it went into administration
- Creditor pressure / legal action
- Regulatory change or action
- Funding withdrawn / unable to refinance
- Property / lease costs
From the administrators' statement
Churchlake Holdings (“Topco”) is the parent company of the Group which between them own and operate 11 residential care homes with five homes located in the North-West and six homes located in the NorthEast of England.
In July 2022, the Secured Creditor advanced two term loans to the Group totalling c.£16.2 million alongside a loan of £1.5 million provided to the Group by Frederick Sinclair-Brown. On 30 September 2022, management provided detailed information to the Secured Creditor that the individual care homes had good occupancy rates, were overall profitable with an EBITDA of c.£3 million, cash at bank of c.£400,000 and CQC reports which were largely rated as “Good”, with two homes rated as “Requires Improvement”.
In October 2022, the Secured Creditor became increasingly concerned by a number of events which had arisen, including insolvency events in three companies within the wider group and the likely downgrading of CQC ratings on at least two of the 11 homes which provided the primary security/collateral for the Secured Creditor.
Administrators' statement of proposals (2023-01-05) · Companies House register