Hanover Park (Scotland) Limited (SC266355): administration
- Status
- Administration ended
- Administration began
- 2012-02-28
- Administrators
- Richard Gardiner
- Administrators' firm
- CG&Co
- Incorporated
- 2004-04-13
- Location
- Dunfermline
- Industry
- 7499
Why it went into administration
- Property / lease costs
From the administrators' statement
Hanover Park (Scotland) Limited was incorporated on 13th April 2004 and operated as a property letting Company with the assistance of The Royal Bank of Scotland pic. The Company acquired 10 residential properties in 2004 and over the following year purchased a further 6 residential properties. The properties were mainly let to individuals receiving housing benefit. The Company was responsible for finding tenants, arranging tenancy agreements, rent collection, repairs and maintenance.
The administrator has been advised that in 2009 the Company entered into a lease whereby the 13 Fife based properties were leased to a connected party for an amount equal to the secured borrowings. The three remaining properties continued to be let by the Company. A dispute arose between the previous Directors over this lease agreement and in 2011 an action was raised by the Company against the connected party in order to have the lease reduced. The Administrator has requested information in respect of this court action but no detailed information has been forthcoming. The Administrator understands that the court action does not allow the Company to transact with the properties, to obtain new tenants, evict current tenants or to carry out repairs.
It is alleged that the connected party has not paid the funds for the lease and no payments have been made to maintain the secured borrowings. As a result the secured lender was left with no alternative but to appoint an Administrator.
Administrators' statement of proposals (2012-05-02) · Companies House register