Davenham owed banks £65m

By Bridging Loan Directory -

Administrators of finance firm Davenham Group have failed to find a suitable buyer for the group, which owes its banks around £65m, newly filed documents show reports BusinessDesk.com.

The Manchester-based financed firm had its shares suspended from the AIM market on October 3 and went into administration later that month, after its banking syndicate refused to renew its facility.

The bank owed its bank syndicate £64.84m according to a report by administrators David John Whitehouse, Philip Duffy and Matthew Bond at MCR.

The group’s gross loan book stood at £33.17m as of September 30, split between property (£20.75m), trade finance (£4.22m), and asset finance (£8.2m).

Administrators had collected £3.3m from the group’s loan book by the end of November.

A statement of affairs is yet to be produced and administrators said they are working with directors on this. However, the schedule of creditors according to company records show the group owes around £204,000.

The group of companies had around £750,000 cash in the bank at the time it went into administration.

Although MCR received six indicative offers by its November 4 deadline, non were accepted and the run off strategy continues.