The Newcastle-based company for development went into administration in the year 2000 with debts that exceeded PS200m. People who owe over PS211m were identified by the administrators who deal with the collapsed North East property firm High Street Group However, they’ve been warned that it may take years to resolve the company’s debts.The company, which is best known for its involvement in the Hadrian’s tower development in Newcastle it was put into administration in the year following serious financial issues prior to and during the outbreak.
The latest report of the administrators has revealed that investors in loan notes with an investment of PS123.6m have been identified and the company has non-preferential creditors with a total of PS87.7m. It’s not clear if creditors will receive any payments through the administration process. Prior to the collapse, High Street Group had been involved in a range of notable projects in the North East, including plans to construct a hotel flats and offices close to the St. James’ Park, as well as the development of homes on what was the Brett Oils site on the banks of the Tyne in Gateshead. In recent times, it’s also completed projects that were completed in Birmingham along with in the North West, while other developments in these areas were planned.
However, it was hit with a series of difficulties that led to one of its subsidiaries being placed in administration in the year 2019 following the failure to pay an international lender, and their accounts were delayed on variety times and two distinct auditors quit. It claimed that lack of funding from institutions for its various schemes due to the pandemic led to the company’s eventual demise. The latest administrators’ report discloses that a creditor’s committee was created to represent the small investors who invest in High Street Group through various financing schemes. It also highlights the possibility that people who hold loan notes are being targeted by frauds from companies that claim they can assist people in recovering investment into the business.
The report states:
Creditors should be aware of the various scams targeting owners of loan notes. They claim that they will charge an upfront fee in order to pay people who have loan notes their money. This is not the case and you should not be in contact with them. “As the scam becomes discovered when a scam is discovered, The Insolvency Service is being made aware. It is important to note that creditors are not required to pay any third party in order to get their money released. This company has not entered liquidation, and any person who claims to have been assigned by creditors to make payments is engaging in fraud.” The report suggests that the process could last anywhere from six to seven years to finish the administration.