SHP Capital Holdings Limited - case update

The administrators of an investment SPV are facing hurdles in realising assets after a number of the company’s borrowers also entered insolvency.

SHP Capital Holdings Limited is the holding company for a wider group of companies which operated as an SPV to facilitate a number of investments and loans in both related and unrelated entities, with business interests in a number of sectors including funeral planning, film and media, litigation funding and property.

SHP was placed into administration on 22 March 2022, after defaulting on its loan from Huddle SPV 16 Limited, its secured creditor. Nedim Ailyan and Benjamin Stanyon of FRP were appointed Joint Administrators.

The company’s primary business interest at the date of the administration was Safe Hands Planning Limited, a subsidiary funeral planning business, which itself entered administration on 23 March 2022. At the date of the administration, Safe Hands was listed as owing approximately £1.5 million. The administration of Safe Hands remains ongoing, but it is not currently anticipated that there will be a material return to unsecured creditors in the absence of recoveries from litigation proceedings.

In addition to the loan to Safe Hands, the company made loans to the following parties, among others:

• Life Begins Film Limited: Life Begins owes £150k plus interest to the company and £625k to SHP Prestige Limited, a subsidiary of the company. Life Begins is also in administration and the prospect of returns to unsecured creditors remains uncertain.

• Pine Developments Limited: Pine Developments was also placed in administration by Huddle on 22 March. The Joint Administrators previously agreed a sale of £1 million of the company’s secured debt owing by Pine Developments, leaving a principal balance of £7 million. The company then received an interim distribution from Pine Developments of £1 million against the outstanding balance. The administrators currently estimate that up to £391k will be received from Pine Developments, but the timing and quantum of any future distribution is uncertain.

• Tallaght Financial Limited T/A Cubefunder: The company provided a secured loan of £4.25 million to Cubefunder. The Joint Administrators were able to secure a settlement of £3.35 million plus a contribution of £30k towards legal costs with Cubefunder. These funds were recently paid.

• Fortis Funeral Plans Limited, Philips Legal Solutions Limited and RPW Legal Limited: Collectively, these subsidiaries owe approximately £327k to company. The Joint Administrators issued petitions for the subsidiaries to be wound up, and all of them are now in liquidation. The balances owed by these subsidiaries will likely be written off.

• Fortis Wealth Limited: This related party was placed into administration on 9 September 2022 and had an outstanding loan balance of approximately £83k. The Joint Administrators anticipate a potential return of approximately £12k to £16k.

• Guardant Asset Management Limited: This related party was placed into CVL on 5 August 2022. The Joint Administrators anticipate that any balance owing will be written off.

• Regalia Property UK Limited: This subsidiary had an outstanding balance of £344k and was placed into CVL on 2 March 2023. It appears that its only asset is an overdrawn director’s loan account. The Joint Administrators intend to pursue the amount due, but any recovery is uncertain.

• SHP Prestige Limited: This related party had an outstanding balance of £625k and was placed into CVL on 19 August 2022. The Joint Administrators anticipate a potential return of approximately £27k to £63k.

• The DLA and Welcap Limited: One of the company’s directors was listed as owing approximately £1.1 million and a company owned by that director was also listed as owing approximately £1.3 million. This Joint Administrators learned that this director was undergoing divorce proceedings. The Joint Administrators eventually accepted an offer from a third party for an assignment of the loan debts due to the company. The agreement provides that the company will receive 40% of all recoveries made by the purchaser up to the amount of £500k and then 100% of all recoveries up to the maximum amount of £700k against both loan debts. The purchaser has until 31 May 2023 to remit the sums due under the agreement, at which point the Joint Administrators can require that the loan balances be assigned back to the company.

The Joint Administrators have indicated they will provide further updates on these matters in their next report. Their latest progress report can be found HERE. They have been assisted by Edwin Coe (legal advice), JYY Risk Management (professional due diligence) and Shipleys (accountancy advice).