Subcontractors owed money by collapsed housebuilder Cotswoldgate are to hold a “war council” to discuss whether there is any potential for legal action against Aurelian Property Finance, the company that backed the now defunct firm, writes Michael Glackin.
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.
Steve Evans, chief executive of electrical contractor Clarkson Evans, which is owed £184,000 by Cotswoldgate, organised the meeting, which is to be held in Gloucester next week. He expects 30 subcontractors to attend.
Evans said: “I don’t think we’ll get our money back but we want these people brought to book and censured in some way.”
We want these people brought to book and censured in some way
Steve Evans, Clarkson Evans
Evans said the meeting will be addressed by solicitors and insolvency experts who will advise on legal options available to the subcontractors.
He added: “Between us we are prepared to invest considerable sums to pursue this case.”
Evans said Aurelian had asked a number of subcontractors to return to complete the work. He said: “They expect it to be business as usual and draw a line under the £184,000 we’re owed.”
Aurelian was unavailable for comment.
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