Blackmore Bond - Is Administration Now Inevitable?
It's been revealed that 2 of the companies that have used money from Blackmore Bond have now gone into administration.
Blackmore Bond is structured as a company borrowing from bondholder and lending money to many other Blackmore SPV (Special Purpose Vehicle) companies that are each supposedly developing different property sites around the UK. It's important to note that the SPVs are not independent and are mainly run by the same directors as Blackmore Bond itself.
The two SPVs that have gone into receivership are Blackmore SPV 13 Ltd and SPV14 Ltd that are meant to be developing land in Birmingham and Liverpool. Reports suggest that little has happened with the development but that is unconfirmed.
According to the paperwork submitted to Companies House, the Receivers were appointed by the lender to these companies called KSEYE Capital Limited
https://beta.companieshouse.gov.uk/company/10855805
According to the accounts filed up to 30 December 2018 Blackmore SPV 13 Ltd owed £278,013 more than the value of its assets so it seems unlikely that any money would be returned to bondholders from this company.
It appears that Blackmore bondholders have lent £2.7 million to this company but it has also taken out a bank loan for £1.2million. The value of land owned is only valued at £2.5 million but the bank loan takes priority over bondholders and with the current virus crisis the land may well have much lower values than the GDV (Gross Development Value) that Blackmore claimed.
https://beta.companieshouse.gov.uk/company/10855482
SPV14 has similarly appointed receivers to run the business as of March 2020. The company has assets of £1.5 million but owes bondholders £1.7 million. The company overall owes £21,000 more than the value of its assets.
Since the 2018 accounts there is now a charge registered against the company so it looks like they have taken out another loan against their assets thus potentially reducing bondholder funds even further.
Lots of related company transactions are listed in the accounts but these only go to December 2018, who knows what else might have taken place after that time. Blackmore Bond seems to have given up filing their own accounts and are now seriously overdue with Companies House.
Blackmore Bond is structured as a company borrowing from bondholder and lending money to many other Blackmore SPV (Special Purpose Vehicle) companies that are each supposedly developing different property sites around the UK. It's important to note that the SPVs are not independent and are mainly run by the same directors as Blackmore Bond itself.
The two SPVs that have gone into receivership are Blackmore SPV 13 Ltd and SPV14 Ltd that are meant to be developing land in Birmingham and Liverpool. Reports suggest that little has happened with the development but that is unconfirmed.
According to the paperwork submitted to Companies House, the Receivers were appointed by the lender to these companies called KSEYE Capital Limited
Blackmore SPV 13 Ltd
https://beta.companieshouse.gov.uk/company/10855805
According to the accounts filed up to 30 December 2018 Blackmore SPV 13 Ltd owed £278,013 more than the value of its assets so it seems unlikely that any money would be returned to bondholders from this company.
It appears that Blackmore bondholders have lent £2.7 million to this company but it has also taken out a bank loan for £1.2million. The value of land owned is only valued at £2.5 million but the bank loan takes priority over bondholders and with the current virus crisis the land may well have much lower values than the GDV (Gross Development Value) that Blackmore claimed.
Blackmore SPV 14 Ltd
https://beta.companieshouse.gov.uk/company/10855482
SPV14 has similarly appointed receivers to run the business as of March 2020. The company has assets of £1.5 million but owes bondholders £1.7 million. The company overall owes £21,000 more than the value of its assets.
Since the 2018 accounts there is now a charge registered against the company so it looks like they have taken out another loan against their assets thus potentially reducing bondholder funds even further.
Lots of related company transactions are listed in the accounts but these only go to December 2018, who knows what else might have taken place after that time. Blackmore Bond seems to have given up filing their own accounts and are now seriously overdue with Companies House.
 |
| Blackmore Bond Administration Inevitable? |
The companies liabilities are mainly to Blackmore Bond Plc itself i.e. inter-company, so there is still significant value in the assets. You won't know the true net asset position of the complete business until Blackmore files the accounts for Blackmore Bond Plc.
ReplyDelete