Arngask Hotels Limited (SC463351): administration
- Status
- Administration ended
- Administration began
- 2021-07-05
- Administrators
- Donald Mckinnon
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2013-11-08
- Location
- Glasgow
- Industry
- 41100 Development of building projects
Why it went into administration
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
From the administrators' statement
Creditors should note that, unless otherwise stated, this section of my proposals has been prepared based on information provided to me by the directors of the Company and from other third parties, and not from my personal knowledge as Administrator.
The Company purchased the Glenfarg Hotel in 2014 and was traded for around 23 months. The property was then in the process of being sold, however, at the last minute the purchaser admitted they had insufficient funds. Around that time the director's health had deteriorated and it was suggested by his doctors that he reduce his working hours. On that basis the decision was made to close the hotel and get planning permission to convert it into residential units. After obtaining planning permission the Company attempted to sell the property but suffered three abortive sales. The Company then approached C & M Wealth Global Ltd and Ms Xingrong Hu (‘the Lenders’) in 2018 with a view to repaying the existing debt and the expectation that they would provide further funding to complete the redevelopment.
Unfortunately, the Company was ultimately unable to meet its commitments in respect of the Standard Security and no further funding was provided by the Lenders. By this point the redevelopment works had already commenced and the property fell into a state of disrepair. The company has been unable to obtain further lending to repay the Lenders and finish the redevelopment.
Administrators' statement of proposals (2021-08-17) · Companies House register