Asset-based lender Davenham Group has gone into administration, with insolvency firm MCR appointed yesterday to wrap up the firm’s financial affairs.
The Manchester-based lender released a statement confirming that David Whitehouse, Philip Duffy and Matthew Bond of MCR have been appointed to deal with liabilities owed to the group’s banking syndicate.
The company’s shares were suspended on October 3 and the group had declared a loss before tax in its annual accounts for 2010 of £23.3 million.
In the same report the group’s chairman Jamie Kerr-Muir, and group managing director Paul Burke said the results reflected: “an environment that has remained challenging during the year with the group finding it difficult, especially in respect of its property portfolio, to sell assets for value.”
In the joint statement, they added: “The vast majority of the property portfolio has remained non-performing, resulting in reduced income and continued operating losses.”
On 1 March 2010, David Coates stepped down as chief executive of the group and Burke stepped up from group finance director to group managing director.
By June, the company had declared its intention to cancel the admission of its securities to the Alternative Investment Market (AIM).
An official statement is expected from MCR later today.