High Street Group - Case Update

The joint administrators of collapsed property developer High Street Group have raised concerns about the ability of a related company to meet its indemnity obligations to investors.

The Newcastle company was placed into administration in 2021, owing more than £123m to private investors. Carrie James of SKSi and Anthony Hyams and Lloyd Hinton of Insolve Plus were appointed as joint administrators.

Hadrian Real Estate assumed control of the company’s assets, including partially-complete projects, following its collapse. Hadrian had presented several pipeline projects to the joint administrators, but the joint administrators are now saying that there is “minimal prospect of fund recovery” from Hadrian. The joint administrators also have concerns regarding Hadrian’s ability to fulfill its indemnity obligations to investors, many of whom are private individuals.

In addition, the joint administrators have revealed that Kreston Reeves has conducted a targeted review of around 12,000 banking transactions, looking at the movement of assets and intercompany funds. The joint administrators have withheld their findings at this time, saying they are certain creditors will understand the stance they have adopted.

The joint administrators have been assisted by Burges Salmon and Gunnercooke (legal) and Kreston Reeves (accounting). Their proposals can be found HERE.