Wednesday, 11 July 2012

New Edinburgh Ltd in administration

New Edinburgh Ltd (NEL) which was set up by Edinburgh city council and builders Miller to develop Edinburgh Park has gone into ­administration.  NEL only assets are a part let office building and 30 acres of land near Edinburgh Park Station.  The company has no employees. 

But with the market for office space in trouble, and £18m understood to be owed to Lloyds Banking Group, insolvency practitioners at Deloitte have been called in.

New Edinburgh Ltd (NEL) was formed as a joint venture, but the council  said it had completed its purpose and blamed the current economic climate for the council's decision to not undertake any more investment in the area.

Council leader Andrew Burns said: “NEL was set up to generate development and employment and it has been highly successful in doing both. Since its creation in 1990, it has created 7000 jobs and been responsible for the construction of 1.3 million square feet of office space.
“It has also generated millions of pounds in dividends for the stakeholders which has been put to good use funding council services for local residents.”

So Lloyds Banking Group have called in the administrators as they are the secured lender and they have the power to enforce their security as the charge holder.  For more information on how the bank, as a creditor, has this power please read our page on creditors and fixed and floating charges.

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