Warner Estate Holdings Plc, owner of Liverpool shopping centre Cavern Walks, is to enter administration and suspend its trading securities.
In a statement to the London Stock Exchange today (28 August), the company declared its intention to appoint administrators from CCW Recovery Solutions, following the withdrawal of support from lender Aviva Investors, in its capacity as Ashtenne Industrial Fund.
The company had previously warned in its interim management statement of possible insolvency to come, 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 in today’s 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 Holdings PLC for it to provide those asset management services.