Strathclyde Properties Limited (SC217263): administration
- Status
- Administration ended
- Administration began
- 2014-01-10
- Administrators
- John Charles Reid, William Kenneth Dawson
- Administrators' firm
- Deloitte
- Formerly
- Strathclyde Homes Residential Letting Limited; Pacific Shelf 1038 Limited
- Incorporated
- 2001-03-23
- Location
- Glasgow
- Industry
- 68209 Other letting and operating of own or leased real estate
Why it went into administration
- Funding withdrawn / unable to refinance
- Sustained trading losses
From the administrators' statement
In 2006 the Company refinanced with DBS and obtained a £12m term loan to facilitate the growth of the business.
The Company incurred significant losses in the subsequent years until 2011, when they returned a profit. {In 2013, the Company's facility with DBS reached c£22.2m and DBS arranged for formal valuations of the Company's properties. The valuations indicated a significant reduction in value, to the extent that they were worth less than DBS debt levels.
Due to the Company's inability to service its debt, DBS requested a repayment proposal from the Director. The Director was unable to propose a satisfactory repayment strategy to DBS and in the absence of further funding chose to appoint an Administrator to the Company through the power afforded to it as QFCH.
Administrators' statement of proposals (2014-03-07) · Companies House register