Investors of Gavin Woodhouse Home Project to Vote for Settlement Offer
As per reports, the decision of whether the former business partner is trying to buy the investors of Gavin Woodhouse Care Home Project “at a pittance” will soon be made in a settlement offer through voting by the investors.
The voting, planned to be executed in October, will provide the investors an opportunity of accepting 11p per pound for the money they paid in the single off-plan development in Yorkshire. Even though money was duly paid, the advertised care home never turned into reality earlier.
Sources revealed that the amount MBI Walsden Care Ltd raised from investors in 2014, worth £5.8m, has now vanished from the bank account of the firm.
In a recent ruling by Judge Mark Mullen, it was announced that Robin Forster who is the only director of the firm, can offer the investors a vote on his proposal in October.
Commenting on the same, Mullen said, “What [MBI Walsden investors] will wish to do is from a view if this relatively small return is something they want to accept at this stage or if they want a much more rigorous investigation that may lead to a higher return”. He added, “It is for the creditors of this company to be given the ultimate say on if … this is an attempt to buy them off at a pittance.”
The recently out ruling is an outcome of the covert investigation done by ITV News and The Guardian that hoisted questions about business interests of Gavin Woodhouse, who raised nearly £80m from private investors to construct care homes and buy hotels, but whose firms have a multimillion-pound “black hole”.
With the insolvency company Duff & Phelps taking over the existing companies, multiple Woodhouse firms were put under administration during summer.
It was only because of the promise by Director Forster to not dissipate the firm’s assets that MBI Walsden was left.
Seeking a possible solution to the existing problem, Forster requested the court to prolong Duff and Phelps take over the running MBI Walsden to allow investors to consider his company voluntary arrangement. This arrangement is an insolvency process wherein the struggling firms can deal to diminish their financial issues, on the grounds that creditors hold at least 75 percent of the agreed debt.
Mullen expressed, “It does appear to be clear that the MBI group of companies have, in an egregious manner, failed to safeguard client monies.” He added, “Forster essentially appears to admit in his narrative to a breach of fiduciary duty to the company in allowing Mr Woodhouse to operate the [company bank] account without reference to him.”
Ridding himself of all accusations, Forster said that he was unaware of the share businesses Gavin Woodhouse was running in the firm. Also, he said that Qualia Care, his own company was unconnected to Woodhouse.
In another news, two Llandudno hotels owned by NPD, Gavin Woodhouse’s firm have gone into administration. Many more hotels located in South Wales and Yorkshire have followed the same path.
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