Elliot Group to place three schemes in administration
Liverpool developer Elliot Group will be placing three schemes into administration following funding problems brought about by allegations of fraud and corruption against the company’s founder, Elliot Lawless.
Mr Lawless, who was arrested on December 18, 2019, denies all allegations.
Paul Cooper and David Rubin of David Rubin & Partners, based in London, have been brought in to assist Elliot Group’s efforts to protect the existing investors and creditors of the three companies going into administration.
The three developments are Aura and Infinity in Liverpool, and The Residence, on Greengate in Salford.
Administration grants a company a period of grace while solutions to its problems are found.
“We’ve explored every option available, but in light of the investigation, existing investors were cautious about backing the projects to their conclusion,” said Elliot Lawless.
“As we enter the administration process, we’ll continue to work proactively with investors to explore how we can help them crystallise their investments and get the projects completed.
“They’re good schemes in great locations and I want to see them through. We’ve delivered 100% of all our schemes in the past and I am intent on maintaining that track record,” he added.
Lawless says his focus is now on working with the administrator to keep the three projects alive.
“It has been a challenge for me dealing with the police investigation, but it’s nothing compared to the fact that hundreds of great workers have lost their jobs and investors’ funds are at risk.”
Paul Cooper and David Rubin acting as joint administrators will personally handle the administration.
Work has now ceased on all three sites.
A spokesperson for construction firm Vermont Property Group said: “We have engaged with Elliot Group and their investors directly for over a month now, in an attempt to find a solution to enable the works to recommence on the Aura scheme in Liverpool.
“We believed there was a solution that would have seen the development successfully through to practical completion, however this needed the agreement and endorsement of all parties under a revised and transparent funding structure.
“Regrettably, we were unable to agree terms and the necessary security provisions with Elliot Group in respect of Aura and have had no alternative but to withdraw from these discussions.
“The Vermont team are extremely disappointed at this outcome, however, we remain committed to assisting all parties in exploring how this project can be completed in due course.”