Liverpool: cinema-to-residential conversion company has £30m debt

A property company set up to develop a former Liverpool cinema into city centre apartments has liabilities of over £30m.

Pinnacle Student Developments Ltd was behind the development of the former Odeon Cinema on London Road in Liverpool city centre. But the 488 bed scheme marketed as the Paramount stalled in 2015 and was not fully complete.

The Odeon, which first opened in the 1930s, closed in 2008. Pinnacle eventually entered administration and investors who put deposits down on apartments at the site feared for their cash.

Now a report by administrators Quantuma LLP has revealed that investors have submitted claims for over £13m on the scheme.

It reads: “The company granted a fixed and floating charge to MVG Holdings Limited on 5 June 2017 who was owed £4,178.428 on appointment.

“The company also granted a fixed charge on 18 October 2013 to Pinnacle Student Buyers Limited, a company set up on behalf of the buyers who were owed c£13, 505,055 on appointment to represent their interest.”

Another view of the Paramount building in Lord Nelson Street
Another view of the Paramount building in Lord Nelson Street (Image: Andrew Teebay / Liverpool Echo)
The same reports reveals the company has huge liabilities toward unsecured creditors.

It reads: “Unsecured claims were estimated at £14,247,539 in the Director’s Estimated Statement of Affairs and to date claims have been received from unsecured creditors totalling £26, 186,872.

“In addition the joint administrators have received a claim from connected company Pinnacle Angelgate Limited for £2,072,237. which is disputed by the director.”

Source: Liverpool Echo

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