Administrators fail to recover cash from KW Linfoot
ADMINISTRATORS handling the collapsed Yorkshire property group KW Linfoot have told creditors they have failed to recover much cash from the business.
In their final report Gary Blackburn and Paul Whitwam, of Leeds-based BWC Business Solutions, admitted that the objective of administration had not been achieved due to “insufficient asset realisations”.
The company will now move to a company voluntary liquidation in the coming weeks handled by joint liquidators Mr Blackburn and Paul Stanley of Begbies Traynor who will attempt to claw back more money.
The developer went into administration in February while developing apartments and offices in Leeds and Greater Manchester, including 1,000 apartments at the four 26-storey Manyoo towers at Salford Quays.
Plunging property values left some of its investments in negative equity while demand dropped. The business could not pay it creditors and was pursued by a subsidiary of Peel Holdings over a £7.7m debt associated with the Manyoo site.
In the report administrators said claims from 52 of 90 potential creditors had been received totalling £12.1m.
But little cash has been recovered from the business to pay them a dividend. KW Linfoot was owed £1.8m and administrators had hoped to recoup half this sum. However, they now admit that none of this cash has yet been recovered.
An inter-company loan of £289,412 is also outstanding from KW Linfoot Leeds with just £23,500 having been paid back through the sale of car parking spaces.
An earlier report said the company owed £3.9m to founder Kevin Linfoot and £7.7m to Peel. Around £200,000 was owed to trade creditors and the business had a £500,000 tax liability.
