The developer behind a stalled tower block, Herculaneum Quay, owes more than £23 million, including £11m from those who purchased property from them.
This is just one of many developments in Liverpool that have been stalled due to development companies failing during the construction stage.
Finance company, Lendy, said that it had called in the Administrators because it lost confidence in Herculaneumco’s ability to get the development finished.
The administrators are currently considering whether to complete the development themselves or sell the property on.
A spokesperson for Herculaneumco says that they company had no idea that the lender was calling in the administrators until the very last minute. Kerry Tomlinson said that he would “fight for the best solution” for all of those who had purchased flats at the site.
The 119 flat block had originally been stared in 2007 but stalled as the recession set in. Mersey Developer Primesite took over in 2013 via Herculaneumco.
Flats within the block were sold off-plan to buyers whilst primesite secured additional funding from Lendy.
The report prepared by administrators state that the company collected £10.9M from buyers. In addition to this,bank debts came to £23.6M with £12.7M owed to Lendy.
The unfinished tower is valued at £8M.