North West property developer goes into administration
Jeremy Woodside and Lindsey Cooper of RSM restructuring advisory were appointed joint administrators of Pinnacle (Manchester) Limited, on September 28.
The company, whose head office is located in Wilmslow, develops residential accommodation including an office conversion at Grove House in Manchester and student accommodation on Hyde Park Road in Leeds.
Pinnacle still owns the freehold interest on both these sites.
Due to cashflow issues linked to historical rent guarantees, a creditor took steps to resolve the situation and applied to court to appoint an administrator.
The RSM team said it is considering all options to maximise realisations for creditors, including looking to sell the freehold interest held by the company, while liaising with the developer to complete further works on Grove House in Manchester.
Jeremy Woodside, partner at RSM and joint administrator, said: “The liquidity of the business was insufficient to cover the rental agreement for investors, which forced the business into administration.
“We are working with professional advisers to consider all options to maximise realisations for all creditors,” he added.