Early asset sale safeguards development sites as administrator says housing slowdown gave final push to struggling developer
Welsh housing developer Meadgate Western has sunk into administration with debts of nearly £36m. Unsecured creditors are said to be owed £4m.
Meadgate's assets have already been bought by River 7, whose directors were also on the board of Meadgate's holding company. River 7 is understood to have paid a significant premium on a market assessment of the group's assets.
Rob Lewis, joint administrator and partner at PricewaterhouseCoopers LLP, said: “The Meadgate Group has suffered substantial losses in recent times, which have been further compounded by the general slowdown in the residential property market.
“However, we are pleased to have been able to secure the future of current site developments by negotiating an early sale of the group's property assets.”
The majority of Meadgate's 50 staff have been re-employed by River 7.