Manchester residential developer Colin Shenton has been forced into bankruptcy and his company Shenton Estate is to go into administration.
Manchester county court made a bankruptcy order on 19 September. On 20 September the Official Receiver appointed Ted Fergusson, partner at Leeds and Manchester insolvency practitioner BKR Haines Watts, as trustees in bankruptcy.
Shenton was due to meet the official receiver last week to prepare a statement of affairs. It is understood the bankruptcy relates to personal guarantees made by Shenton in support of the Shenton Estate Co. A creditors meeting is due to be held soon.
The High Court is to hear an application on Monday 2 October to appoint Charles Macmillan, partner with accountancy firm BDO Stoy Hayward, as administrator of the developer, which disclosed last week debts of £2.5m and a £5m gap in revenue.
Macmillan said: “The aim will be to realise equity in the company. This could mean either selling Shenton Court, installing tenants and then selling it, or selling it in parts.”
Last month, it was revealed that the Inland Revenue had petitioned for a winding-up order following disputes over £87,000 of unpaid tax by Shenton Estate Co. A hearing is due on 4 October.
It is believed that around £30,000 is owed to surveyor Lewis Ellis, and £21,500 to NAI Gooch Webster. A bankruptcy petition has also been lodged by English Real Estates, part of the Safeway supermarket group.
EGi News 29/09/00
