Ilke Homes - Case Update

The liquidators of Ilke Homes have released their final account, sharing that secured creditor Homes England is set to receive only £126,423 of the £68.8 million owed to it due to a subordination deed entered into with certain shareholders that advanced £5 million to the Ilke Group shortly before the companies’ administration.

Clare Kennedy and Catherine Williamson of AlixPartners were appointed as administrators of Ilke Homes, Ilke Homes Land and Ilke Homes Holdings on 30 June 2023 after the companies faced significant liquidity constraints largely due to inflationary pressures in the period following the COVID-19 pandemic. A winding up order was made in respect of Ilke Homes on 18 September 2023, while the other two entities remained in administration.

In their final account, the liquidators shared further details with respect to the subordination deed and the anticipated outcome for Homes England. On 12 May 2023, funds advised by TDR Capital and Sun Capital, the lead shareholders in Ilke Homes Holdings, injected £5 million of unsecured funding into the business. On 25 May 2023 a further £5 million tranche of funding was injected subject to a subordination agreement with Homes England. This funding was provided by funds advised by TDR Capital, Sun Capital and CF ILK Investments in order to support the business whilst it looked to bridge to a longer-term financing solution. Unfortunately, one was not found and the companies entered administration shortly thereafter.

As a result of the subordination deed, Homes England is expected to receive only £126,423 from the liquidation of Ilke Homes. However, it may still collect further sums from the other two entities, which are still in administration.

Read the update here.

The liquidators were assisted by Kirkland & Ellis and Macfarlanes (legal advice), Hilco (valuation and disposal advice), Naismiths (debtor recovery) and CBRE (land sales), among others.