FreshStart settles with investors
By Bridging Loan Directory -
Salford buy-to-let specialist FreshStart Living has struck a deal with a group of 70 investors who were pursuing it over unpaid rent.
Parent company Empirical Property has agreed to pay nearly £131,000 to the group who bought “student pods” from FSL Properties Montgomery, a FreshStart arm set up to buy Montgomery House in south Manchester and turn it into student flats.
Individual rooms were sold to investors who were incentivised by the promise of guaranteed rental returns.
The investors issued a winding up petition against FSL Properties Montgomery earlier in the year claiming debts of around £200,000, initially refusing an offer from Empirical of £135,000. One petitioner settled for £4,000 in March hence the lower offer agreed yesterday.
Under the terms of a court order the money must be paid by April 24. The winding-up hearing was adjourned to April 29 when costs will be agreed.
At Manchester Civil Justice Centre yesterday Carly Sandbach, representing the creditors, said: “The parent company of the company subject to the petition has agreed to pay the undisputed amount to all the creditors.”
After the hearing Empirical’s chief executive Charlie Cunningham said: “We’ve always accepted there’s been a certain amount outstanding and always offered to pay that amount. What we hadn’t wanted was to be held hostage for an amount that wasn’t owed.”