Manchester developer Colin Shenton is facing a bankruptcy petition lodged by English Real Estates, part of the Safeway supermarkets group. The company lodged the petition against 31-year-old Shenton in Manchester County Court on 2 July last year and a hearing is due to take place on 19 September.
English Real Estates is one of a number of creditors looking to recover debts from Shenton. Last week EGi reported that the Inland Revenue has lodged a winding up petition against one of the developer’s principal vehicles, The Shenton Estate Company. Several surveyors also claim that they are owed money by the developer.
Investment agent Lewis Ellis & Partners confirmed that it commenced legal action in September last year against The Shenton Estate Company for non-payment of a substantial fee, believed to be over £30,000. According to the agent it has received no payment for this invoice, which is now 15 months overdue, despite having secured a personal guarantee from Colin Shenton in March 2000.
Lewis Ellis previously acted for The Shenton Estate Company in the purchase of residential development Shenton Court, on Booth Street in Manchester. Commenting on Shenton’s assertion in last week’s EGi story that he was suing the agent, a Lewis Ellis spokesman said: “There has never been a dispute over the property transaction nor the validity of our fee invoice. The legal action instigated relates purely to recovery proceedings of bad debt. Lewis Ellis is unaware of any legal action being taken by The Shenton Estate Company against the partnership.”
Shenton was more circumspect when asked this week about further legal proceedings and would not comment on either the English Real Estates or Lewis Ellis & Partners actions. He said: “I want to deal with this privately, I don’t think we have anything to defend.”
Meanwhile, Shenton also owes money to Gooch Webster. The debt is believed to be around £21,500. A spokesman for Gooch Webster confirmed there is an outstanding legal action against Shenton. He said: “Our solicitor has advised us that as there is an outstanding action it is not appropriate for us to comment.”
EGi News 29/08/00
