Lowther Manelli fails to secure CVA

CUMBRIAN developer Lowther Manelli has failed to strike a deal with creditors.

The company, which is behind the New Squares redevelopment scheme in Penrith, sought an agreement this week over £5m of debt through a Company Voluntary Arrangement (CVA).

Under the terms of the deal most creditors would have received 35.78p in the pound while contractor Thomas Armstrong would waive its right to more than £3m.

But the offer was turned down leaving Lowther Manelli to face a winding up order, brought by Eden Council, at Manchester’s High Court on August 24.

The council stands to lose around £150,000 if Lowther Manelli goes into liquidation but is understood to have turned down the CVA to push forward the New Squares development. Lowther Manelli’s liquidation would return the lease on New Squares to the council.

Lowther Manelli has been working on the project for five years and has invested more than £13m on the mixed-use scheme, which includes a Sainsbury’s superstore, 34 shops restaurants and bars, apartments and a football stadium.