UK holiday park company fell into administration owing £244m

Cove Communities Holiday Park UK HoldCo Limited, the owner of holiday parks across Scotland and England, entered administration owing approximately £244 million, with creditors agreeing to extend the proceedings until October 2027 to allow Adam Paxton of Alvarez & Marsal to complete a coordinated sale of the group's operating businesses and assets, while the parks continue trading. The collapse followed rising interest rates, declining consumer spending, increased operating costs and flooding at one property, with recoveries uncertain for a secured lender owed £70 million, preferential creditors including HMRC, and unsecured creditors owed approximately £174 million, much of which comprises intercompany debt and loan notes.

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