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230417 | Hayle North Quay collapsed company Sennybridge leaves £135 million debts

Hayle North Quay collapsed company Sennybridge leaves £135 million debts

Many creditors will be worried they may not be able to recover what is owed to them

 

 

One bust firm behind collapsed development has £135 million debts

Olivier Vergnault

The massive financial scale of the collapse of the North Quay development in Hayle has been revealed by administrators. At the end of January work stopped on the controversial regeneration housing scheme after all companies involved went bust.

The 100-acre site was padlocked and London-based administrators Moorfields Advisory were appointed to sort out the mess. At the time Moorfields said that the two residential buildings in phase 1 were complete and all units in these buildings had sold. However the collapse of the project has left future phases of the construction project on hold.

The specialist recovery firm was appointed administrators of Sennybridge (Hayle) Limited; Corinthian Plant Limited; Corinthian Pencoed Limited; Corinthian Land Limited and Corinthian Access Limited. Other companies involved in the scheme including including Hayle Harbour Authority Operations Limited are managed by other administrators as a total of eight firms went bust.

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Moorfields has now revealed the extent of the collapse and the huge trail of debts left behind by the project and the man behind it, Simon Wright, and his wife Rebecca. Mr Wright, 56, is or has been a director of all eight firms that collapsed while his wife is or has been a director of half of them.

Documents available on Companies House show that Sennybridge Hayle Ltd, the company through which the funds for the Hayle harbour North Quay regeneration project flowed, has racked up humongous debts of more than £135.4 million as of January 31, 2024.

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Some 21 companies or individuals are named as unsecured creditors in the Moorfields' Notice of Administrators Proposal (NAP) including Cornwall Council (£3,663) with the biggest creditors being London law firm Clyde & Co to the tune of £366,000 and a dormant company also run by Simon Wright called Sennybridge Ltd (£27m).

However the largest debt left behind by the North Quay scheme is for £108m to BCM Global, an independent mortgage, real estate and commercial loan servicer based in Ipswich.

Notices of Administrators Proposals highlight how the administrators intend to recoup the money owed to creditors either by rescuing the company and carrying on as before, winding the company up or selling assets to pay the creditors.

As well as the land on North Quay in Hayle, Sennybridge (Hayle) Limited also owns nine acres of land above the harbour known as the Hilltop which has planning consent for 98 homes. Riviera Fields is a 20-acre patch of farm land on which the company had planning consent to build more than 300 homes on.

Meanwhile the land at Phillack includes a tenanted farm and a bungalow. The insolvent firm also owns or manages 21 chalets at Harvey Towans, as well as Hayle Harbour itself and all the infrastructure including the jetties, sluice gates and breakwaters and central pier. The operation of the harbour is run by a separate company and is not affected by the collapse of the project.

Documents filed with Companies House also show that Sennybridge (Hayle) Ltd also owns a beach nearby and sand dunes, which has controversially been used to take sand from for the construction project and to sell, marshland at Copperhouse in Hayle as well as car parks at North Quay and in the town itself.

More on the North Quay development collapse

Massive controversial housing development goes bust

Hayle North Quay development collapse sees eight companies go bust

Collapsed North Quay development in Hayle described as a 'sea of despair'

The man behind the catastrophic collapsed development at North Quay in Hayle

Doomed Hayle North Quay development through the years - in pictures

Many residents and businesses in Hayle are worried not only that the site could remain unfinished for years but they could be out of pocket if the administrators cannot sell up any assets after the largest secured creditors have first been repaid.

Moorfields said it will continue to manage the business, which includes new or ongoing deals with the car park operators, for example, but also said it is looking at selling any of the assets left.

However the administrators also wrote: "As it is likely that there will be no property available to enable a distribution to be made to non-preferential unsecured creditors, the administration of the company is expected to end by filing notice of dissolution with the Registrar of Companies. The company will then be automatically be dissolved within three months after the notice is registered."

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Michelle Scully, who has kept tabs on the North Quay development for years, highlighted to CornwallLive the massive debts left behind by Mr Wright's company. She said the administrators' admission that there might not be much left to sell to recoup any cash is a huge worry to local firms and individuals.

She said: "We are concerned a lot of creditors won’t know the process and did not get themselves on the creditors’ list. Some people have contacted me saying they worked for Simon Wright but he was paying them through different companies so they have no idea of their employment rights."

Anyone with concerns about the administration process should contact Ralph Williams at Moorfields at ralph.williams@moorfieldscr.com or 020 7186 1163.

https://www.cornwalllive.com/news/cornwall-news/hayle-north-quay-collaps...

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