Gold Property Developments Limited and Gold Property Construction Limited - Case Update

The liquidators of two Leeds-based construction companies have shared that an unprofitable construction project and a recent transaction caused the companies’ financial issues.

On 13 October, Mark Banfield and David Baxendale of PwC were appointed joint liquidators of Gold Property Developments Limited (GPD), and Mark Banfield and Ross Connock were appointed joint liquidators of Gold Property Construction Limited (GPC).

GPD was established to develop building projects and GPC was established to construct domestic buildings. They formed part of a larger group of companies that had been loss-making and required considerable shareholder lending in recent years. The group is facing cashflow pressures as a result of an unprofitable construction project and the financial implications of a recent transaction.

Despite the companies’ efforts to negotiate with the customer on the construction contract, they have not been able to obtain the additional funding required to complete the contract. Therefore, it was determined that it is no longer in the best interests of the creditors for the companies to continue to trade.

Updates on the liquidation can be found HERE.