Manchester apartment block owner racked up £40m of debt before collapsing into administration
The company behind an apartment building on the edge of Manchester city centre racked up almost £40m in debt as it collapsed into administration, it has been revealed.
Background The company was set up in 2014 and is owned and controlled by Gary Jackson, DeTrafford's founder and chief executive. The special purpose vehicle was created for the development of the apartment block in Chester Road, Castlefield. How the company entered administration In August 2019, main contractor Pochin Construction was placed into administration and ceased to trade. DT Construction, an associated company, was then appointed as the main contractor which was then required to hire a new team and deploy resources from other projects.
"In addition, the wider DeTrafford group had previously faced severe delays relating to a separate development following the failure of the same main contractor, which resulted in significant resources and management time being incurred to resolve the position." BDO added: "The company was unable to negotiate acceptable payment terms, had insufficient funds to settle the petition debt and insufficient time to complete a refinance. Accordingly, Daiwa sought to appoint administrators to the company to take control of the assets and protect its position."
The two commercial units are leased to Tesco and a pizza restaurant and have an estimated value of up to £2.3m.
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