Search launched for Millshomes’ depositors
The administrators of the failed property developer have launched a search for potential creditors of the company.
In April, Paul Stanley and Jason Greenhalgh from Begbies Traynor's Manchester office were appointed as joint administrators of Millshomes.
As well as the completed Victoria Mill development in Reddish, the company left behind the development of Elizabeth Mill in Stockport. The business went into administration having taken deposits for several of the planned 100-plus flats but the administrators have been unable to locate the financial records which tie specific payments to individual creditors.
The administrators have decided to manage 40 remaining apartments at Millshomes' Victoria Mill development in Reddish as a going concern instead of trying to sell the properties en-bloc in the market.
Stanley said: "The way in which the cash deposits were banked and later moved around means we may have been unable to trace all the prospective buyers who put down a deposit for a flat in Elizabeth Mill."
Stanley added that "some funds are held in a separate bank account which relate to deposits received from purchasers who were buying off-plan".
Stanley said the money that is left in the failed business "depositors' account" may be distributed shortly and although it is unlikely that buyers will receive a full refund, they could collect several thousand pounds.
Stanley said: "The slump in mortgage lending and the wider economic downturn were the downfall of Millshomes. This led to the proposed scheme becoming uneconomic."
The next stage for the unfinished mill is yet to be decided but Stanley added he is in talks with the local planning authorities.
He added: "Although the plans to transform Elizabeth Mill into a modern living space were promising, there is little appetite from other developers to complete the original project at this time."
Begbies Traynor is asking anyone who thinks they have a valid claim and can produce written proof that they paid a deposit to Millshomes for a flat in Elizabeth Mill to contact the administrators at its Manchester office. Ten people have, so far, come forward to reclaim their money.
