Firm behind £45m Liverpool scheme owes £39m to creditors
Mount Group Student Natex, an SPV attached to developer Mount Property Group, collapsed midway through delivering the 574-unit student development on Norton Street.
The Liverpool-based company owes a total of £39m to creditors, according to an administration report by Mazars.
In October, Mazars was appointed as administrator by lender Prime Secured.
Prime Secured, based in the British Virgin Islands and in liquidation, was owed £7.6m by the SPV at the time of its collapse.
Investors that have paid deposits for flats at Natex are owed almost £26m, according to the administrators report.
A total of £5m is owed to purchasers with unilateral notices with priority over Prime Secured.
A unilateral notice is a charge taken out against a property that protects the priority of interest in that property, based on the date the notice was registered.
A further £2.5m is owed to investors who took out unilateral notices after the registration of Prime Secured’s charge.
The remaining £18.6m is owed to Natex buyers that do not hold unilateral notices.
All of the 574 flats were sold off-plan and there are 405 investors owed money in total.
Mount Construction, part of Mount Property Group, is owed £5m while Liverpool City Council is owed £160,000.
Overall, trade creditors are owed £13.3m.
Agents JLL and Wignall Brownlow have been appointed to sell Natex in a bid to recover cash for creditors.
Final offers for the development will be considered at the end of January 2022.
Mount, headed up by chief executive Michael Chrysokhou, bought the Norton Street site from Anwyl in 2018 for £3.75m, according to the administrators report.
Natex topped out in January. The scheme comprises two towers. One is 70% complete and the other is 30% complete, administrators said.
Mazars predicts the cost of completing the project would be around £13m.
