The administrator of Cotswoldgate is poised to put the collapsed housebuilder into liquidation, a move that could pave the way for legal action against its former directors, writes Michael Glackin.
Administrator Deloitte has told subcontractors owed money by the housebuilder that it is willing to hold a creditors’ meeting, after initially refusing to do so.
It is understood that the meeting will be a precursor to Deloitte placing Cotswoldgate into creditors’ voluntary liquidation. Creditors have called for this move because it will allow an investigation into the reasons behind the company’s collapse.
Gloucester-based Cotswoldgate went into administration in April, owing an estimated £3m to more than 30 subcontractors. The failure of the £13m-turnover firm followed the collapse of Welsh housing developer Meadgate in March with debts of £36m. Both firms were backed by Aurelian Property Finance.
I understand the problems, but i’m confident that I acted properly at all times
Richard Perrill, River 7
Meadgate’s assets were bought by River 7, a company whose two directors, Martin Taylor and Jeffrey Taylor, are on the board of Aurelian. Both were also directors of Cotswoldgate, whose assets are now controlled by Aurelian. Richard Perrill, Cotswoldgate’s managing director, was appointed to the board of River 7 in March.
Steve Evans, chief executive of electrical contractor Clarkson Evans, which is owed about £184,000 by Cotswoldgate, said: “I’m pleased the administrator has agreed to give all Cotswoldgate’s subcontractors the opportunity to explain their concerns to him in person.”
Perrill has denied wrongdoing. He said: “I understand the problems, but I’m confident that I acted properly at all times.”