Verase Limited (SC130656): administration
- Status
- Administration ended
- Administration began
- 2016-09-07
- Administrators
- Catherine Williamson, Mark Nicholas Cropper, Benjamin J Browne
- Administrators' firm
- AlixPartners
- Incorporated
- 1991-03-21
- Location
- Glasgow
- Industry
- 68209 Other letting and operating of own or leased real estate
Why it went into administration
- Creditor pressure / legal action
From the administrators' statement
3.1 The Companies own and operate two franchised hotels and one bar/restaurant establishment located in Aberdeen, Scotland. Details of the Companies’ property assets can be found at Appendix B. The Companies are all connected by two common sharehoilders/directors.
3.2 The Companies have traded successfully since the acquisition of the Holiday Inn (HI) in 2007 and completion of the construction of the Holiday Inn Express (HIX) In 2009. However, the downturn in the Aberdeen economy and resulting pressure on the local business and leisure markets has caused trading performance to deteriorate during the past 18 months, putting significant pressure on the Companies’ cash flows.
3.3 In September 2015, EDC and Verase sold their heritable interest in the HI and HIX to an unconnected third party for approximately £6 million and in return were granted 175 year leases over the respective properties. The Administrators are advised that Verase used its share of the proceeds to pay down debt and meet certain liabilities which had accrued due to the downturn in trading at the HIX. The EDC proceeds were placed into escrow with the Secured Creditors, to be used to support ongoing loan repayments and, in part, to fund a renovation programme at the HI (albeit it is understood that this was subject to the approval of the Secured Creditors).
Administrators' statement of proposals (2016-11-03) · Companies House register