Member Article

Cavern Walks owners appointing administrators

The owner of Liverpool’s iconic Cavern Walks shopping centre is to appoint administrators and suspend trading in its securities, it has confirmed.

In a statement to the London Stock Exchange, Warner Estate Holdings declared it intends to appoint administrators from CCW Recovery Solutions. This follows the withdrawal of support from lender Aviva Investors, in its capacity as Ashtenne Industrial Fund.

Warner Estate Holdings operates a wholly-owned fund comprising of 42 commercial sites as well as units in the Ashtenne Industrial Fund.

The group had previously warned in its interim management statement that insolvency was possible, as it struggled with debts resulting from the 2008 financial crash.

On 16 August the company reported that “negotiations continue with its lenders and other key stakeholders regarding options to realise value for the security held by those lenders over the asset management business and units in the Ashtenne Industrial Fund whilst providing continuity of asset management services to the funds the group manages.”

“The group remains reliant on the continuing support of its lenders and other key stakeholders particularly because at certain times the cash held by the business will be low and headroom will be marginal.”

Aviva Investor’s withdrawal has “significant implications for the group’s cash flow headroom” as the asset management agreement accounts for over 90% of the group’s current revenue.

Philip Warner, Chairman of Warner Estates, said a statement: “We have worked closely and consensually with our lenders and all our key stakeholders over the last number of years since the 2008 financial crisis to realise sufficient value for them whilst preserving the independent viability of the core asset management business.

“It is therefore with considerable regret that the appointment of administrators means that any potential value for our long standing and supportive shareholders has been finally extinguished.”

Following the appointment of administrators, Ashtenne Industrial Fund will terminate the asset management agreement with the Warner Estates and enter into a contract with Hansteen HoldingsPLC for it to provide those asset management services.

This was posted in Bdaily's Members' News section by Simon Malia .