DeTrafford Wavelength Limited

DeTrafford Wavelength Ltd. (the “Company“), the vehicle behind a 421-home development at Salford Quays, entered administration on 17 August after falling behind on its debt repayments as a result of pandemic-related delays. At the time of the administration, the Company had sold 299 of the apartments.

Since then, two more DeTrafford entities have entered administration citing the impacts of the pandemic, and DeTrafford has managed to sell the site of a proposed 400-flat project to avoid another administration.

The Joint Administrators for the Company have delivered their Statement of Proposals outlining their strategy for the Administration.

At this time, the most significant issue appears to relate to the preservation of planning permissions for 421 residential units held by the Company. The property is subject to certain planning permission pre-conditions that must be met by 6 December, including the safe demolition of the existing commercial building. The Joint Administrators are working with the director of the Company and existing planning consultants in order to satisfy the planning permission pre-conditions and to preserve the planning permissions.

A lapse of the planning permissions would likely be value destructive, as it would likely result in a reduced sale price for the property and a worse outcome for creditors. Accordingly, the Joint Administrators have advised that they may require additional third-party funding in order to preserve the planning permissions, and may be required to seek a court order to declare that repayment of any funding received to preserve the value of the property can be made from the proceeds of sale of the property, prior to the distribution of the net sale proceeds to the relevant secured creditors.

Michael Lennon and James Saunders of Kroll Advisory are the Joint Administrators. They are assisted by DLA Piper.

The full report can be found HERE.