Torsion Developments faces winding up petition
Torsion Group has been hit with a second winding up petition for one of its companies weeks after Torsion Construction Limited fell into administration.
TheBusinessDesk.com can reveal that the petition against Torsion Developments has been lodged by Zentra Great Ducie Street, part of Manchester-based Zentra Group.
Torsion Construction had been the principal contractor for Zentra’s One Victoria development in Manchester city centre. However, following the administration of Torsion Construction, Zentra announced it had ‘served notice terminating the contractors employment with immediate effect’.
At the time in statement to the stock Exchange, Zentra said it did ‘not expect these developments to have a material adverse effect on the recoverability of its £4.1m loan receivable, which ranks for repayment from project sale proceeds after secured borrowings and liabilities incurred in the ordinary course of business, but ahead of other shareholder loans”.
Zentra subsequently announced it has entered into a letter of intent with AC1 Construction Limited to complete the remaining works at its One Victoria development.
TheBusinessDesk.com contacted Zentra, but the company declined comment.
Administrators Interpath were appointed to Torsion Construction in July after it failed to secure additional funding to support the future of the business. More than 100 of its 115-strong workforce were immediately made redundant. The company specialised in delivering build-to-rent (BTR) and purpose-built student accommodation (PBSA) construction projects. Like many businesses in the sector it had been experiencing liquidity pressures as it tackled delayed capital events, contract margin pressure rising input costs, and a wider downturn in the market.
It is the second winding up petition Torsion Group, founded by Dan Spencer in 2015, has been hit with in the last few weeks. Sister company Torsion Projects, which specialises in the delivery of care homes, retirement living and residential developments, received a petition by construction equipment supplier, YardLink.
In a statement at the time, Torsion Group said: “Torsion Projects has paid all undisputed sums due to Yardlink. The amounts referred to in the proposed winding-up petition are the subject of a genuine and longstanding commercial dispute between the parties. Those matters are being addressed through the appropriate legal process, and Torsion Projects will defend its position robustly.”
“Torsion Projects remains focused on delivering for its clients and partners and continues to fulfil its contractual obligations in the ordinary course of business.”
TheBusinessDesk.com contacted representatives for Torsion Group for comment on the latest winding up petition but did not receive a response.
