Inland Homes has filed a notice of its intention to appoint an administrator.
The house builder and brownfield developer filed the application with the Companies court today (27 September).
It has retained counsel from London legal firm Dorsey & Whitney (Europe) LLP.
David Hudson and Phil Armstrong of FRP Advisory have been appointed as administrators of the company.
In July, Inland conducted a review led by FRP into “related party relationships and transactions” within the company.
As part of an audit for the year to 30 September 2022, Inland commissioned a further review by FRP concerning “control breaches” and “incomplete disclosures”.
The last time the company appears to have filed accounts was in February 2022 for the year to 30 September 2021.
Inland Homes appears not to have filed its results for year ended 30 September 2022.
The company continues to be in discussions with HSBC regarding waivers for the breaches of a loan covenant announced in September.
Inland also anticipates it is “likely to be in breach of covenants with other lenders” soon and has begun discussions with them.
In July the brownfield developer announced the appointment of former MJ Gleeson boss, Jolyon Harrison, as its new CEO, as then incumbent chief financial officer and acting CEO, Nishith Malde, prepared to step down.
Inland Homes also recently announced the acquisition of NorthCountry Homes Ltd as part of a strategy to develop a low-cost homes business model, for £4 million.
However, the deal was subject to several conditions including the restoration to trading on AIM of Inland’s shares which is now not going to happen and so the NorthCountry deal has been cancelled.
“Taking into account the current circumstances and including the group structure and the current cash resources available to it, Inland has concluded that the appointment of administrators in accordance with the provisions of the Insolvency Act is in the best interests of all stakeholders,” a notice on the London Stock Exchange states.
Inland Homes was approached for comment.
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