Modus Ventures’ administration is extended

ACCOUNTANTS handling Brendan Flood’s failed Modus Ventures property business have extended the administration period by a further six months.

The administrators at KPMG’s Manchester office said they needed the extra time to finalise their investigations into loans worth £48.5m owed by group companies, although they do not expect any “significant realisations”.

So far they have recovered £5m, some of which came from loans owed by Burnley Football Club where Mr Flood is a director.

The Bank of Scotland, which loaned Modus £23.6m, is expected to take a significant hit. As a secured creditor it has received £2.1m but, “realisations will be insufficient to wholly satisfy the bank’s lending”, says the latest report.

Salford-based Modus Ventures controlled a group of 40 companies, many of which were involved in the construction of retail developments. It went into administration in May 2009.

The group rapidly acquired a large portfolio of development sites but began to unravel when Bank of Scotland called in its loan to Modus Ventures.

In February eight of the Modus group companies were sold by administrators to Yorkshire-based Scarborough Development Group for £37m.