Friday, 6 January 2012

Creditors grab the Brunel Centre

The Brunel — in trouble
In a rather complex chain of financial transactions, it appears that the Brunel Centre has been forced into the hands of ‘fixed charge receivers’ by the fall in property values in recent years. The centre — which is owned by a Jersey-registered company — had breached some of the terms of a loan — traded on the Irish stock exchange — of over £110 M in the first half of last year. The creditor’s agentappointed after the default — had also had the centre revalued, reducing its worth by almost a third, down to £87 M, less than the value of the loan. The closure of the Liquid & Envy nightclub was estimated to have lost the centre income of £90,000, but this was less than 4% of their total income.

With the loan due for repayment on 25 April this year, and with over £100 M of the loan still outstanding, the creditors were clearly getting worried about the chances of getting their money back, and have taken possession whilst considering options, including the possibility of selling the centre. The appointment of receivers was announced on 22 December.

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