Row between funders and directors stopped data centre build
A breakdown in the relationship between company directors and its their main funders was behind the failure of an award-winning data centre to be completed, according to newly-released documents.
Adrian Allen and Tyrone Courtman were appointed joint administrators to Cool Data Centres (Lincoln) (Cool Dc) on August 3.
Established in 2017, Cool Dc was located on the Boole Technology Centre, Lincoln. Cool Dc’s proposition was to offer a “step change” in how data centres were designed, built and operated. While close to completion, a lack of funding meant the technical infrastructure was not finished, therefore it was unable to begin servicing its prospective customers.
It is thought that the data centre was 90% complete and required around another £200,000 of further investment to complete it in like with its original design. It is thought that up to £2.3m had already been invested in the site.
However, the administrators say a “breakdown in the relationships” between “certain company directors” and Hagan Homes Limited – its main funder – resulted in neither party able to continue to work with each other and the company being deemed insolvent.
Cool Dc directors Tim Chambers and Angela Meah sought advice from Frost Group, a firm of insolvency practioners, which recommended the company be placed into administration. However, Hagan obtained an injunction stopping the firm appointing Frost.
RSM was appointed as administrator on August 3 by both the directors of Cool Dc and Hagan.
CoolDc emplyed six staff – five of which were made redundant shortly after the administrators were appointed.
In August, Courtman told TheBusinessDesk.com: “We have received a considerable amount of interest in the company’s business and assets from customers and investors alike. I am confident we will see a deal concluded in the coming weeks.”
A sale of the site has now been concluded by the administrators, who will release the details of the buyer and the value of the deal at a later date.