Out-of-pocket subcontractors demand action against backer Aurelian after administrator fails to place Cotswoldgate in liquidation
Subcontractors owed money following the collapse of Cotswoldgate have written to business minister John Hutton demanding action against Aurelian, the company that backed the housebuilder and took over its assets.
The move comes after Deloitte, Cotswoldgate's administrator, turned down creditors' calls for a meeting to liquidate the company.
In a letter to creditors, Deloitte said there were no funds available to call a creditors' meeting – a prerequisite for getting the company placed into liquidation.
Creditors are demanding that Cotswoldgate be placed into liquidation since it will enable them to pursue legal action against the housebuilder's directors.
Gloucester-based Cotswoldgate went into administration in April owing an estimated £3m to more than 30 subcontractors. The failure of the £13m-turnover firm follows the collapse into administration of Welsh housing developer Meadgate in March with debts of £36m. Both firms were backed by Aurelian.
Meadgate's assets were bought by River 7, a company with two directors, Martin Taylor and Jeffrey Taylor, who are also on the board of Aurelian. Both men 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.
The Department for Business, Enterprise and Regulatory Reform was unavailable for comment.
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