Fordevelopments Limited (SC262584): administration
- Status
- Administration ended
- Administration began
- 2012-06-11
- Administrators
- Paul Dounis, David M Menzies
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2004-01-28
- Location
- Edinburgh
- Industry
- 68100 Buying and selling of own real estate
From the administrators' statement
The Company operated as a property developer and had developed a site known as Trafalgar Lane in Leith, an area of Edinburgh. The only known property asset at the time of appointment is a currently tenanted unit from the development.
The director of Fordevelopments limited was also a director of a wholly owned subsidiary company, Fordevelopments (Coburg Street) Limited (‘FCSL’). FCSL was a special purpose vehicle (“SPV”) for the 9 unit development at Coburg Street and funding for the two companies was provided by Clydesdale Bank (‘the Bank”). Clydesdale Bank provided funding to the companies under a cross-company guarantee which incorporated a security over the Trafalgar lane development.
Clydesdale Bank have appointed Receivers to FCSL. As a result the director expected the cross-company guarantee to be called up as a consequence of the value of the Coburg Street development being well below the Bank debt and decided to place the company into administration as the expected liabilities of the Company exceeds the value of its assets.
Administrators' statement of proposals (2012-08-06) · Companies House register