JUNGLEdrum News

Peverel goes as Tchenguiz house of cards collapses


After several weeks of speculation around the financial status and integrity of the billionaire Tchenguiz brothers' empire, part of that empire, Peverel, has gone into administration.

The larger they are the harder they fall and Peverel is no exception. As the holding companies behind the largest property management company today failed to meet demands to repay &125 million and were forced into administration.

Administrators Zolfo Cooper are reported to have said that the operating companies, which employ around 4,000 staff and look after around 190,000 properties and retirement homes, were unaffected by the collapse of the holding companies and would continue to trade as normal.

The Peverel Group began as part of the McCarthy & Stone group of companies. In 1982 McCarthy & Stone incorporated Peverel Management Services Limited to provide property management and ancillary services to its private retirement housing developments.

Zolfo will run the businesses in the hope of securing a sale. Simon Appell, partner of Zolfo Cooper, said: 'Whilst the business itself was profitable at an operating level, the level of debt in the holding companies was unsustainable.
'The administrations of the holding companies were therefore unavoidable. However, the operating companies are unaffected and will continue to trade as normal.'

Vincent Tchenguiz (pictured), had agreed a debt-for-equity swap with Bank of America Merill Lynch in relation to Peverel (ultimately owned by the Tchenguiz Family Trust, the holding company of Vincent Tchenguiz), and it is not yet clear why the repayment demands were made.

This development follows last week’s dramas when bot Vincent Tchenguiz and his brother Robert were arrested in connection with an investigation by the Serious fraud office into the circumstances surrounding the collapse of the Kaupthing Banking Group.

Published in: JUNGLEdrum! The newsbeat from PROPERTYdrum

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