Inland Homes - Case Update

The joint administrators of Inland Homes have provided a bleak update on the likely fate of the AIM-listed property developer and other members within the Inland Group.

David Hudson and Philip Armstrong of FRP Advisory were appointed administrators of the companies in October after months of turbulence. In March, the company announced that it had become aware of certain related-party transactions. This necessitated a delay in filing the Group’s statutory account for FY22, resulting in the company’s shares being delisted. It also caused the company to engage FRP’s forensic team to conduct a review of the transactions.

The forensic review was completed in late September and indicated that further work was required before the financial statements could be compiled and audited. This, combined with the ongoing financial difficulties associated with the construction sector, as well as the Group’s diminishing cash position and inability to service its debts, caused the directors to appoint administrators.

In their proposals (found HERE), the joint administrators explain that none of the entities within the Group will be able to be rescued as a going concern due to the lack of working capital available to allow the continuation of day-to-day trading activities. As such, the joint administrators anticipate that objective (b) – to achieve a better result than would be likely under an immediate winding up – will be achieved for most of the entities within the Group, since asset realisations are expected to cover secured and preferential claims for those entities. Objective (c) – to realise property in order to make a distribution to secured or preferential creditor(s) – will likely be achieved for the other entities. It is currently estimated that there may be sufficient funds available to make distributions to unsecured creditors for 12 of the companies.

The joint administrators have been assisted by Dorsey & Whitney.