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Liquidators appointed to HAB Land Limited

Liquidators appointed to HAB Land Limited

James Bennett and David Standish from KPMG have today been appointed Joint Liquidators of BAH Restructuring Limited, HAB Land Limited and HAB Land Finance plc.

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Director, Restructuring

KPMG in the UK

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James Bennett and David Standish from KPMG have today been appointed Joint Liquidators of BAH Restructuring Limited, HAB Land Limited and HAB Land Finance plc.

HAB Land Limited was founded in 2014 to acquire development land for building projects at sites in Oxford and Winchester. HAB Land Finance plc was subsequently incorporated as a wholly owned subsidiary of the company in 2016, in order to raise finance to fund the real estate activities of HAB Land through Mini Bond Instruments.

In March 2019, following a period of difficult trading, the directors of HAB Land undertook a comprehensive review which led to the conclusion that they may not be in a position to repay the full amounts advanced from HAB Land Finance. Subsequently, the directors wrote to the bondholders of HAB Land Finance setting out the position and putting forward proposals in order to repay them. These plans were rejected by the bondholders.

A meeting of the company’s board of directors subsequently took place on 25 September 2019 where it was resolved that the company was insolvent and should be wound up voluntarily. This was followed by a meeting of the company’s creditors yesterday (15 October 2019) at which a vote was passed to place the company into Creditors’ Voluntary Liquidation.

Joint liquidator James Bennett said: “The directors have reported that higher than anticipated design and project management costs, coupled with delays to the delivery of the sites, resulted in the companies experiencing significant liquidity issues. After being unable to raise further finance or renegotiate existing liabilities, the directors took the difficult decision to instigate liquidation proceedings.

“This has resulted in a considerable loss to mini bond holders who largely financed the project. An important element of the liquidators’ role, as usual, will be to review the events leading up to the failure of the companies.”

For the avoidance of doubt - both of the building projects in Oxford and Winchester are controlled by two subsidiary companies, HAB at Lovedon Fields Limited and HAB at The Acre Limited, neither of which are part of the proposed liquidation. The directors of these entities continue to explore options to enable these developments to be completed. HAB Housing Limited is also unaffected by the liquidation proceedings.

ENDS


For media queries only, please contact:

Katy Broomhead, Senior PR Manager
Tel: 0161 246 4623 / 07824 537963
Email: katy.broomhead@kpmg.co.uk

KPMG Press office
Tel: +44 (0) 20 7694 8773

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 16,300 partners and staff. The UK firm recorded a revenue of £2.338 billion in the year ended 30 September 2018. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 154 countries and has 200,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

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